IN THE HIGH COURT OF JUDICATURE AT PATNA CWJC No.9768 of 2006 SAJENDRA PRASAD Versus THE STATE OF BIHAR & ORS ----------- 4 10.09.2008 Heard learned counsel for the petitioner and learned counsel for the State. Petitioner is an employee working under the respondents Patna Nagar Nigam when a personal Life Insurance Scheme was floated through the Life Insurance Corporation some time in the year 1986 for a period of 20 years. Petitioner volunteered and offered for deduction of Rs. 106.20 paise every month from his salary. His case is that after completion of 20 years in March 2006, this deduction has been stopped as the period of maturity was reached. When he demanded his money, the respondent did not pay him the said amount. The Life Insurance Corporation would not honour it because according to them the policy had lapsed in the month of April 1997 itself. This fact was never made known to the petitioner and deduction continued from his salary and the benefit of such deductions has not accrued to the petitioner. It is in this background that the writ application has been filed seeking a direction. A counter affidavit filed on behalf of the respondents does not indicate the entire gamut of facts but the court is informed that somewhere down the line, the LIC categorically took the stand that they are not willing to continue with scheme - 2 - and they had stopped accepting premiums. If this fact was made known to the respondents then the deduction ought to have been stopped from the petitioner salary and he ought to have been informed so that he could have taken alternative investment decision. From the facts it appears that it is a case of gross negligence on the part of the respondents Patna Nagar Nigam, which has caused problem for the petitioner. In the given facts and circumstances therefore, this Court comes to considered opinion that the petitioner is entitled to the refund of his entire deducted amount from respondent Patna Nagar Nigam and would also be entitled to payment of @ 12% per annum interest, simple in nature, on the above deducted amount. The respondents are directed to pay the above to the petitioner within two months from the date of communication/production of a copy of this order or else, the Court will be compelled to hold the head of the organization responsible for default. The writ application stands disposed of with the above direction. Rajeev/ (Ajay Kumar Tripathi, J.)