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2017 Supreme(Guj) 1404
IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
N.V. Anjaria, J.
K.Z. Leasing and Finance Ltd. Through Chairman – Petitioner
Versus
Union of India Through the Secretary & Others – Respondents
Special Civil Application No. 10231 of 2008
Decided On : 01-09-2017
For the Petitioner:Mr. Hemang M. Shah, Advocate
For the Respondent:Mr. Siddharth Dave for Mr. Devang Vyas, Advocate, Ms. Naynaben K. Gadhvi, Advocate
Headnote:
Constitution Of India – Article 226 – Kisan Vikas Patras – Letter – Notification – Claim for interest and payment of maturity value – Refund of money – Challenges decision of Ministry of Finance, Government of India as communicated to petitioner by letters from Senior Superintendent of Post Offices to allow petitioner to refund of amount being invested value of Kisan Vikas Patras- KVP without interest payable on maturity of said certificates, on plea that Kisan Vikas Patras (KVP) cannot be issued in name of firm/institution and KVP certificates were irregularly issued in name of the petitioner company – Reserve Bank of India by Notification required Non-Banking Financial Companies, Equipment Leasing Companies, Loan and Investment Companies to maintain liquid assets of not less than 10 per cent/5 per cent depending of their regulatory status – As per directives of Reserve Bank of India, petitioner purchased 50 Kisan Vikas Patras of denomination the total value of Rs. 05,00,000/- from Area post office bearing distinctive serial numbers petitioner purchased another set of 50 Kisan Vikas Patras for further value of Rs. 05,00,000/- on which was issued by the post office concerned with distinctive serial numbers – Held, It is no doubt true that there are specific Rules framed for purchasing Kisan Vikas Patra under which the appellant society as such would not be entitled to purchase Kisan Vikas Patra. In spite of this, the fact is that respondent authority without informing or bringing it to the notice of the appellant society accepted said amount way back in 1997 and it is only when in 2002 after a lapse of period of more than 5 and 1/2 years when the appellant society had applied for renewal of it, then only the appellant society was told that neither the said amount can be renewed nor it can get the amount with interest on it on its maturity date – If appellant petitioner was told in 1997, then it being a society, it would have definitely invested the said amount in any other nationalized saving scheme – Having accepted said amount from appellant petitioner without bringing it to its notice that it was not entitled to purchase Kisan Vikas Patra, then it would not like good in mouth of respondent authority to say that the appellant society was not entitled for interest on Kisan Vikas Patra. The principle of unjust enrichment would also apply to the Government and its agencies – Decision of Ministry of Finance, Government of India communicated to the petitioner by letter by respondent No. 4 - Senior Superintendent of Post Offices, Ahmedabad City Division, Ahmedabad, is hereby quashed. The petitioner is entitled amount of KVPs as may be payable on maturity – Letter by respondent No. 4 - Senior Superintendent of Post Offices quashed – Petition stands allowed. (Paras 8, 11 and 12)
N.V. ANJARIA, J.
Heard learned advocate Mr. Hemang Shah for the petitioner and learned advocate Mr. Siddharth Dave for respondent No. 1.
2. By way of this petition under Article 226 of the Constitution, the petitioner challenges the decision of the Ministry of Finance, Government of India, dated 08th December, 2006 as communicated to the petitioner by letters dated 04th January, 2007 and 28th March, 2008 from the Senior Superintendent of Post Offices, Ahmedabad City Division, to allow the petitioner to refund of only Rs. 05,00,000/- being the invested value of Kisan Vikas Patras without interest of Rs. 05,00,000/- payable on the maturity of the said certificates, on the plea that the Kisan Vikas Patras (KVP) cannot be issued in the name of the firm/institution and KVP certificates were irregularly issued in the name of the petitioner company.
3. The Reserve Bank of India by Notification dated 30th April, 1997 required Non-Banking Financial Companies, Equipment Leasing Companies, Loan and Investment Companies to maintain liquid assets of not less than 10 per cent/5 per cent depending of their regulatory status. As per the above directives of the Reserve Bank of India, the petitioner purchased 50 Kisan Vikas Patras of the denomination of Rs. 50,000/- each on 23rd July, 1998 of the total value of Rs. 05,00,000/- from the Naranpura Area post office bearing distinctive serial numbers. The petitioner purchased another set of 50 Kisan Vikas Patras for the further value of Rs. 05,00,000/- on 06th October, 1999 which was issued by the post office concerned with distinctive serial numbers.
4. The first set of 50 certificates purchased as above was presented on maturity on 04th February, 2004 and the post office concerned paid the maturity value of Rs. 10,00,000/-. The second set of the KVP certificates were getting matured on 06th October, 2 0 05, on which date they were presented by the petitioner before the post office as duly discharged, seeking the payment, however no payment was made. The petitioner sent reminders dated 30th November, 2005 and others requesting for expeditious encashment of the certificates.
5. Finally on 07th August, 2006, Senior Superintendent of Post Offices, Ahmedabad City Division - respondent No. 4 herein, wrote to the respondent No. 3 - Chief Post Master General that with effect from 01st April, 1995, KVP certificates could be issued in the name of firm or institution and the petitioner being company, KVP certificates were issued irregularly. The petitioner sent legal notice reiterating its claim for interest and payment of maturity value. On 04th January, 2007 the petitioner was intimated that it would be refunded only the invested value of the certificates, that is Rs. 05,00,000/-, and no interest would be paid. The respondent No. 4 sent copy of letter dated 08th December, 2006 of the Ministry of Finance, Government of India, containing decision that only invested value could be refunded. Rs. 05,00,000/- being the invested value of 50 KVP certificates came to be paid to the petitioner on 16th May, 2008. As the respondent authorities refunded only invested value of Rs. 5,00,000/- without any interest on payability, petitioner approached this Court.
6. On 11th August, 2008 while issuing Rule in the petition, this Court passed interim order directing respondent Nos. 1 and 3 to 5 to deposit amount of Rs. 05,00,000/- with the Court. It was stated that the amount as directed by the Court is deposited and has been invested by the Registry.
7. Though the petition was contested by filing affidavit-in-reply, at the time of hearing, position of law could not be disputed that the issue is covered by decision of Division Bench of this Court in Devang Co-operative Housing Society Limited v. Sub Post Master being Letters Patent Appeal No. 1509 of 2004 decided as per the judgment dated 17th August, 2004. When learned advocate for the petitioner pressed into service the aforesaid decision, learned advocate for the respo
