1 IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION WRIT PETITION NO.2449 OF 2008 Nicholas Employees Co-op. Credit Society Ltd. ...Petitioners v/s Union of India and others ...Respondents Mr Aditya Chitale for Petitioners. Mr M.K. Vardhan with Mr Kiran Kandpile and Mr V.B. Tiwari for Respondents. CORAM : D.K. DESHMUKH AND R.S. MOHITE JJ. DATE : 7TH JULY 2009. 2 P.C. :- 1] The petitioner is a Co-operative Credit Society of employees of Nicholas Piramal India Ltd. They invested an amount of Rs.2,00,000/- in Kisan Vikas Patra issued by the Deonar Post Office under the provisions of the Government Savings Certificates Act 1959. The Certificate stipulated that a sum of Rs.4,00,000/- should be paid to the petitioners on 8th September 2001 upon the expiry of period of five yeas and six months from the date of issuance of the Certificate. On 2nd July 1997, a further amount of Rs.6,00,000/- was invested by the petitioners against in Kisan Vikas Patra. The said Certificate stipulated that a sum of Rs.12,00,000/- should be paid to the petitioners on 2nd January 2003. On maturity, the petitioners approached the respondents but they declined to pay the amount shown on Certificates viz. Rs.4,00,000/- and Rs. 12,00,000/- respectively on the ground that the Certificates have been irregularly issued. The petitioners therefore approached this Court by 3 filing writ petition No.1005 of 2007 which was decided by this Court on 23rd October 2007 (reported in 2008(2) Mah.L.J. 164). This Court disposed off the petition in following terms :- 15.In the circumstances, we dispose of this writ petition with the following directions :- (i) The petitioner would, in terms of the provisions contained in the proviso to Rule 13(1) of the Post Office Savings Certificates Rules 1960 (as made applicable by virtue of Rule 3 of the Kisan Vikas Patra Rules 1988), be entitled to interest at the applicable rate as stipulated therein from the date of the investment until the date of maturity; (ii)The aforesaid payment shall be made to the petitioner within a period of four weeks from today; 4 (iii) The directions contained in clauses (i) and (ii) above shall be without prejudice to the rights of the petitioner to submit a representation to the Central Government to exercise the power of relaxation with reference to the provision of Rule 17 of the Kisan Vikas Patra Rules, 1988. In the event that such an application is made within a period of four weeks from today, the Central Government shall consider the representation in accordance with law and issue a communication to the petitioner, recording reasons for the decision to grant or deny, as the case may be, the benefit of the relaxation. Such a decision shall be arrived at within a period of three months of the receipt of the representation by the Competent Authority. In the event that the Central Government favourably considers the request made on behalf of the petitioner 5 due credit shall be given for the payment of interest that has been effected in compliance with the provision contained in clause (i) of this order. It is common ground before us that clauses (i) and (ii) of paragraph 15 of the order have been complied with. So far as clause (iii) of paragraph 15 of the order is concerned, an application was made by the petitioners seeking relaxation under Rule 17 of the Kisan Vikas Patra Rules 1988. That application has been rejected in following terms :- This is regarding decision on representation submitted by you on 16-11-2007 for exercise of relaxation powers vested in Central Government under Rule 17 of Kisan Vikas Patra Rules 1988 pursuant to the judgment order dated 23-10-2007 passed by Hon ble Mumbai High Court in W.P. No.1005/2007. 6 I am directed by Competent Authority to inform you that, the further relaxation is not possible in the case. The case is examined in depth to exercise of relaxation powers vested in Central Government under Rule 17 of Kisan Vikas Patra Rules 1988 pursuant to the judgment order dated 23/10/2007 passed by Hon ble Mumbai High Court in W.P. No.1005/2007. Similar cases pertaining to Kisan Vikas Patras issued in the names of Companies and Firms are approved by Ministry of Finance only to refund the invested value without any interest. However, in your case, since the interest as directed by Hon ble Mumbai High Court is already paid to you, the Competent Authority decided that further relaxation is not possible. In view of this communication, the petitioners are again before us. The short grievance of the petitioners is that the 7 petitioners have sought relaxation by enumerating several circumstances why the petitioners are entitled to relaxation due to hardship suffered by the petitioners, but perusal of the communication quoted above shows that the authority has not at all applied its mind to those circumstances and relaxation has been declined solely on the ground that pursuant to the Court s order, interest has been paid. We have heard the learned counsel appearing for respondents. We have perused the affidavit in reply. In our opinion, in views of the judgment of this Court and the order passed thereon, it was incumbent on the authority to consider the reasons given in the representation made by the petitioners for seeking relaxation under Rule 17 of the Kisan Vikas Patra Rules 1988 and then pass appropriate order. That the petitioners have been paid interest pursuant to the Court s order cannot be the reason for declining to relax the conditions of the Rules. In our opinion, in these circumstances, following order would meet the ends of justice. 8 2] The communication dated 6th February 2008 is set aside. We direct the respondent No.3 who, we have been informed by the respondents, is the Competent Authority, to pass a fresh order after taking into consideration relevant aspects and communicate the decision to the petitioners as expeditiously as possible and in any case within a period of four weeks from today. Rule is made absolute accordingly with no order as to costs. Parties to act on the copy of this order duly authenticated by the Associate / Private Secretary of this Court. Certified copy expedited. ( JUSTICE D.K. DESHMUKH ) ( JUSTICE R.S. MOHITE )