IN THE HIGH COURT OF JUDICATURE AT PATNA CWJC No.1016 of 2005 M/S R.B.S. Construction Private Limited, through its Director Sanjeev Kumar Jha, S/o Late Nandu Jha, R/o 163/2C, New Patliputra Colony, P.S.-Patliputra, District-Patna. ….. Petitioner . Versus 1. The Union Of India through the Secretary, Ministry of Communication, Department of Post, Dak Bhawan, Sansad Marg, New Delhi. 2. The Chief Post Master General, Bihar, G.P.O.-Patna. 3. The Senior Superintendent of Post Office, Patna Division, Patna. ….. Respondents. For the petitioner : Mr. Shankar Dayal Singh, Advocate. For the Respondents : Mr. Rakesh Kumar Singh, Central Government Counsel. ----------- 2. 13.01.2011 1. Heard learned counsel for the petitioner as well as learned counsel for all the three respondents. 2. This writ petition has been filed by the petitioner challenging Memo No. CR/SB-Misc/04-05 dated 15.10.2004 and 25.10.2004 (Annexure-1 & 2) issued under the signature of Senior Superintendent of Post Office, Patna Division by which the petitioner was denied interest on the National Savings Certificates on the ground that those Certificates were issued in contravention of the rules and also for a direction to allow interest on the said Certificates issued in the name of the petitioner company and for other ancillary reliefs. 3. It is an admitted fact that National Savings Certificates were issued in the name of petitioner company on 25.06.1999/5.10.1998 for payment of Rs. 4,29,000/- in the Bank Road Post Office, Patna. According to the said Certificates, the said amount after maturity on 25.06.2005/5.10.2004 would be 2 doubled. The grievance of the petitioner is that although the aforesaid Certificates had matured but the amount payable to the petitioner is not being paid. 4. Learned counsel for the respondents vehemently challenges the claim of the petitioner on three grounds. First objection is that there was a ban by the Government vide Notification dated 1.04.1995 that no National Saving Certificate would be issued in favour of any Institution and hence, the Certificates issued in favour of the petitioner, which is a private limited construction company, on 25.06.1999/5.10.1998 were not valid. The second objection is that on 15.10.2004 the respondents had sent a letter to the petitioner informing him that the transaction was not valid as per the aforesaid ban and he should withdraw the said amount, but the petitioner has not withdrawn the said amount and has filed this petition. The third ground taken by the learned counsel for the respondents is that as per the rules the petitioner is not entitled for any interest and the said rules have not been challenged. 5. In this regard, learned counsel for the petitioner relies upon the provisions of the Government Savings Certificates Act, 1959, in Section 1(3) (q) of which it is mentioned that 6-year National Savings Certificates can be issued and Section 12 thereof provides that Central Government may, by notification in the Official Gazette, make rules to carry out the purposes of this Act. He further submits that in view of the aforesaid provisions of 3 the Act, the procedure for 6-year National Savings Certificates was provided in Chapter-17 in which the notes of Section 61(2) provided that it has been decided to discontinue the issue of these certificates to Institutions w.e.f. 1.4.1995 and Section 61(11) provided protection for action taken in good faith by filing other legal proceeding against any officer of the Government or any prescribed authority in respect of any thing which is in good faith done or intended to be done under this Act. 6. Learned counsel for the petitioner also relies upon Rule 9 of the N.S.Cs (VIII-Issue) Rules in which it was provided that some post offices have issued NSCs(VIII-Issue) to Institutions on or after 1.4.1995 which was irregular and the matter for their regularization had been considered in consultation with the Ministry of Finance, which did not agree to regularize these investments made by Institutions on or after 1.4.1995. It is also provided that in case any irregularity is noticed, suitable action may be taken against the erring officials. 7. From the facts and circumstances as well as the arguments raised by learned counsel for the parties and the materials on record, it is quite apparent that the authorities of the post office had very gladly accepted the money from the petitioner on 5.10.1998 and 25.06.1999 and issued National Savings Certificates worth Rs. 4,25,000/- which were to be mature in 2004-2005 but for about five years they did not do anything and only when the Certificates were going to mature 4 they sent letter dated 15.10.2004 to the petitioner to withdraw the initial amount deposited by the petitioner without payment of the agreed amount of maturity. 8. So far as the rules are concerned, the officials of the Post Office were supposed to know the rules but they did not refuse to issue National Savings Certificates to the petitioner or to intimate him about the rules. Since, the officials of the Post Office were gladly accepting the money and issuing National Savings Certificates, there was no occasion for the petitioner to doubt about the validity of those certificates nor he had any knowledge about the rules as provided by the Government. Furthermore, respondents having accepted the said amount of Rs. 4,29,000/- from the petitioner and had put it in its use, there can be no justification in equity to ask the petitioner to receive only the original amount deposited by the petitioner after five years without any interest. 9. So far as the above mentioned provisions of the Act and the Rules are concerned, it is quite apparent that in case any irregularity is noticed suitable action was directed to be taken against the erring officials. However, the petitioner cannot be legally made to suffer for any illegality or error committed by the officials of the respondents. 10. In the said circumstances, this writ petition is allowed and the impugned communications dated 15.10.2004 and 25.10.2004 issued by the Respondents are hereby quashed and 5 the respondents are directed to pay maturity amount on the said National Savings Certificates to the petitioner as per the terms of the certificate along with simple interest on the maturity amount at the rate of 6% per annum from the date of maturity till the date of payment. 11. The loss if incurred to the respondent Post Office may be recovered by it from its erring officials who had issued National Savings Certificates in question to the petitioner. Sujit (S.N.Hussain,J.)