IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE S.SIRI JAGAN WEDNESDAY, THE 10TH JUNE 2009 / 20TH JYAISHTA 1931 WP(C).No. 20090 of 2004(N) -------------------------- PETITIONER: -------------- THE MADAI CO-OPERATIVE RURAL BANK LTD. NO.F.1233, PAYANGADI, REPRESENTED BY ITS SECRETARY BY ADV. SRI.M.SASINDRAN SRI.K.G.EAPEN RESPONDENTS: ---------------- 1. STATE OF KERALA, REPRESENTED BY THE PRINCIPAL SECRETARY (FINANCE), THIRUVANANTHAPURAM. 2. THE DIRECTOR OF TREASURIES, THIRUVANANTHAPURAM. 3. THE DISTRICT TREASURY OFFICER, KANNUR. 4. TREASURY OFFICER, SUB TREASURY, PAYANGADI, KANNUR. BY SPL.GOVT. PLEADER(FINANCE), SRI.MANOJ KUMAR THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 10/06/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WPC : 20090/04 APPENDIX PETITIONER'S EXHIBITS: EXT.P1 : TRUE COPY OF THE CERTIFICATEISSUED I RESPECT OF T.F.D 1895 FOR RS.50,00,000/- DATED 30.6.01. EXT.P1(A) : TRUE COPY OF THE CERTIFICATE ISSUED IN RESPECT OF T.F.D. 1785 FOR RS.40,00,000/-DATED 28.3.01. EXT.P1(B) : TRUE COPY OF THE CERTIFICATE ISSUED IN RESPECT OF T.F.D 1787 FOR RS.10,000,00/- DATED 30.3.01. EXT.P1(C) : TRUE COPY OF THE CERTIFICATE ISSUED IN RESPECT OF T.F.D 2498 FOR RS.2,55,380/- DATED 9.8.02. EXT.P2 : TRUE COPY OF THE TREASURY SLIP DATED 1.7.02. EXT.P2(A) : TRUE COPY OF THE TREASURY SLIP DATED 23.3.02. EXT.P2(B) : TRUE COPY OF THE TREASURY SLIP DATED 23.3.02. EXT.P2(C) : TRUE COPY OF THE TREASURY SLIP DATED 11.8.03. EXT.P3 : TRUE COPY OF THE REPRESENTATION DATED 8.4.02. EXT.P4 : TRUE COPY OF THE REPRESENTATION DATED 8.7.02. Ext.P5 : TRUE COPY OF THE REPRESENTATION DATED 2.8.02. EXT.P6 : TRUE COPY OF THE JUDGMENT IN WPC:4305/04. EXT.P7 : TRUE COPY OF THE LETTER DATED 29.3.04 ISSUED BY SUB TREASURY OFFICER TO THE PETITIONER. EXT.P8 : TRUE COPY OF THE COMMUNICATION DATED 3.3.04 ISSUED BY THE PRINCIPAL SECRETARY TO GOVERNMENT TO THE SUB TREASUREY OFFICER. EXT.P9 : TRUE COPY OF THE COMMUNICATION DATED 29.3.04 ISSUED BY THE 3RD RESPONDENT TO THE 2ND RESPONDENT. EXT.P10 : TRUE COPY OF THE PROCEEDINGS OF THE 1ST RESPONDENT NO.43708/SLI/04 FIN. DATED 25.5.04. /TRUE COPY/ PA TO JUDGE S. SIRI JAGAN, J. ------------------------------------------------- W.P.(C)No. 20090 OF 2004 ------------------------------------------------- Dated this the 10th day of June, 2009 JUDGMENT Petitioner is a Co-operative Society. They have deposited an amount of Rs.1,02,55,380/- in the Sub Treasury, Payangadi as per Ext.P1 series of term deposit certificates at the rate of interest mentioned therein. Even after the date of maturity of the deposits, the respondents did not pay the deposit amount to the petitioner. The petitioner filed WP(C) No.4305/04. On behalf of the Government a submission was made that the amount would be paid within two weeks. The amount was paid on 18.06.04 but, interest was paid only up to the date of maturity. Interest from the date of maturity till date of actual payment was not paid. It is under the above circumstances, the petitioner has filed this writ petition seeking the following reliefs: “i. issue a writ of mandamus or any other writ order or direction to the respondents to pay interest on the amount deposited as per Ext.P1 series of certificate from the date of maturity till the date of actual repayment of the deposit amount. ii. o issue a writ of certiorari or any other writ, order to quash Ext.P10. iii. to declare that the petitioner is entitled to get interest for the deposit amount till the date of returning of the amount by the respondents.” WPC : 20090/04 -:2:- 2. According to the petitioner, the petitioner has deposited the amount in the Treasury savings bank as an ordinary depositor in a bank. As far as the petitioner is concerned, the relation between the Treasury and the petitioner is that of a bank and a depositor. Simply because the Treasury is owned by the Government, they have no special privilege in payment of the amounts deposited at their will. Therefore, just like any other bank, if the amount is not paid on the maturity date, the Treasury is liable to pay interest on the amounts at the contract rate till date of payment. 3. Learned Government Pleader with the help of a counter affidavit opposes the contentions of the petitioner. According to the learned Government Pleader, it is only on account of a ban against treasury payments, the amounts could not be paid to the petitioner on the maturity date. Therefore, according the Government Pleader, no interest is payable. It is also submitted that such writ petition is not maintainable under Article 226 of the Constitution of India. 4. I have considered the rival contentions in detail. Whenever injustice is brought to the notice of this Court, this Court cannot deny justice to the aggrieved party, and this court is bound to exercise its discretionary jurisdiction to render justice to the party. Here all the WPC : 20090/04 -:3:- facts are admitted. Therefore this court is perfectly justified in entertaining the writ petition. I am also of opinion that, as a banker who has accepted deposits in his savings bank, the Government or the Treasury does not have any special privilege in the matter of payment of the deposit amount on the deposit becoming mature. Such payment cannot be equated with payment of amounts by the Government. When they accept deposits from a citizen in a savings bank account the relation between the Treasury and the depositor is that of a banker and a depositor. All laws applicable to savings bank deposits in a bank should apply to such deposits also. The Government cannot therefore ban payment of amounts deposited by the depositor in their bank. If they do so, they stand the risk of paying further interest on the amounts of deposit at contract rate. Therefore I am satisfied that, despite the contentions of the learned Government Pleader, the respondents are bound to pay interest on the deposit amounts at the contract rate till the date of payment and not till date of maturity. Accordingly, the writ petition is disposed of with a direction to the respondents to see that interest is paid on the amount of deposit till date of actual payment at the contract rate mentioned in Ext.P1(a) series certificates. This shall be done as WPC : 20090/04 -:4:- expeditiously as possible, at any rate, within three months from the date of receipt of a copy of this judgment. The Writ Petition is disposed of as above. S. SIRI JAGAN, JUDGE ttb