IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) WEDNESDAY, THE FIFTEENTH DAY OF JULY TWO THOUSAND AND NINE PRESENT THE HON'BLE SRI JUSTICE V.ESWARAIAH and THE HON'BLE SRI JUSTICE P.SWAROOP REDDY WRIT PETITION No.1836 of 2000 Between: J.Yellappa, S/o. Late Narasappa, Aged 60 yrs, Retired Audit Officer, Local Funds, R/o. Ananthapur, Ananthapur Dist. ..... PETITIONER AND The Post Master, Ananthapur Head Office, Ananthapur and others. .....RESPONDENT Petition under Article 226 of the constitution of India praying that in the circumstances stated in the Affidavit filed herein the High Court will be pleased to Counsel for the Petitioner:MR.G.PRABHAKAR RAO Counsel for the Respondent No.: . THE HON'BLE SRI JUSTICE V.ESWARAIAH and THE HON'BLE SRI JUSTICE P.SWAROOP REDDY WRIT PETITION No.1836 of 2000 ORDER: (per Hon’ble Sri Justice V.Eswaraiah) The petitioner filed this writ petition questioning the impugned letter dated 13.01.2000 of the first respondent-Post Master, Ananthapur. It is the case of the petitioner that he opened an individual account on 31.07.1998 bearing account No.6125 for an amount of Rs.1,20,000/- in Ramachandranagar Sub-Post Office, Ananthapur, that again on 20.08.1998, he opened Joint Account bearing No.6128 for Rs.2,04,000/-, that he opened another Joint Account on 03.09.1998 bearing No.3072 for Rs.2,04,000/- in Sub-Post Office, Georgepet, Ananthapur, and that interest was paid regularly on the Joint Accounts for a period of 16 months. The petitioner states that the impugned letter dated 13.01.2000 was issued stating that the Monthly Income Scheme account was opened declaring that his account will not exceed Rs.2,04,000/- but he opened Joint Accounts for Rs.4,08,000/- and, therefore, the said accounts were closed without paying any interest and the interest already paid is adjusted from the balance held in the account. Learned counsel for the petitioner submits that originally the ceiling limit in the Single Account was Rs.2,00,000/- and in the Joint Account, the ceiling limit was Rs.4,00,000/-, and as per the revised Monthly Income Scheme Rules, the ceiling limit for Single Account is Rs.2,04,000/- and Rs.4,08,000/- for the Joint Account. He further states that the amount deposited in the Single Account and the Joint Account cannot be clubbed for the purpose of upper ceiling and, therefore, the action of the respondents in closing the account on the ground that the petitioner deposited more than the ceiling limit and he is not entitled for interest is illegal and arbitrary. He further submits that closing the two accounts bearing Nos.6128 and 3072 for Rs.1,02,000/- each respectively without paying interest is illegal and arbitrary. On the other hand, learned standing counsel appearing for the respondents submits that as per the proceedings dated 11.08.1997 issued by the Director of Postal Services, A.P. SR, Kurnool, there shall be only one deposit of Rs.5,000/- or multiple thereof in an account which can be opened by an individual, that the depositor can open more than one account subject to the condition that deposits in all accounts taken together shall not exceed Rs.1,00,000/- in Single Account and Rs.2,00,000/- in Joint Account. He further submits that the provisions of Post Office Savings Bank Rules, 1981 and the Post Office Savings Accounts Rules, 1981 will be applicable to the Monthly Income Scheme for which no separate provision has been made. He submits that as per the Monthly Income Scheme Rules, 1981, the total amount held by an individual in Single Account together with his share in Joint Account should not exceed Rs.2,04,000/-. He further submits that as per the letter dated 07.01.1997, the outer limit of deposit for Single Account was enhanced to Rs.2,04,000/- and for the Joint Account, it was enhanced to Rs.4,08,000/-. Under Rule 5(1) of the Post Office (Monthly Income Account) Rules, 1987, there shall be only one deposit in the account of Rs.6,000/- or multiples thereof not exceeding Rs.2,00,000/- in a Single Account and Rs.4,00,000/- in case of Joint Account. There is no dispute that as per the enhanced outer limit, the petitioner can deposit upto Rs.4,08,000/-. In all put together, the petitioner has made total deposits of Rs.5,28,000/- in Single and Joint Accounts in the following manner. Single Account 1. 6125 R.C.Nagar, Ananthapur Rs.1,20,000/- Joint Account Sl.No. Account No. Name of the Post Office Amount 1. 6128 R.C.Nagar, Ananthapur Rs.2,04,000/- 2. 3072 Georgepet, Ananthapur Rs.2,04,000/- _____________ Total Rs.5,28,000/- _____________ As per the Monthly Income Scheme Rules, the petitioner is entitled to interest on Rs.4,08,000/- only and he is not entitled for interest in respect of the Single Account bearing No.6125. The respondents ought to have closed Single Account No.6125 alone instead of closing Joint Accounts bearing Nos.6128 and 3072. There is no specific provision or consequential penal provision for contravention of the rules. Hence, we are of the opinion that the petitioner is entitled for interest, as applicable to the Monthly Income Scheme Rules, on Rs.4,08,000/- and on the amount over and above Rs.4,08,000/- he is entitled to interest at the rate prevailing for Savings Bank account. Accordingly, we set aside the impugned letter of the first respondent dated 13.01.2000 and direct the respondents to refund the amounts by paying interest, as applicable to the Monthly Income Scheme, on Rs.4,08,000/- and to pay interest at the rate prevailing for the Savings Bank account on the remaining balance by adjusting the interest already paid to the petitioner. Since the petitioner died during the pendency of the writ petition and his legal representatives were brought on record, the amounts shall be paid to the legal representatives of the deceased petitioner equally distributing the same to all of them. The writ petition is allowed. No order as to costs V.ESWARAIAH,J P.SWAROOP REDDY,J Dt:15.07.2009 usd