PRINCIPAL CHIEF POST MASTER GENERAL KARNATAKA CIRCLE GENERAL POST OFFICE BANGALORE-560001, THE POST MASTER JAYANAGARA POST OFFICE 4TH BLOCK, JAYANAGARA BANGALORE-560011 AND THE SUB-POST MASTER CHAMARAJAPET BANGALORE-560018 Vs. M/S. KARNATAKA STA

JUDGEMENT

(1.) THE appellants herein are the defendants in O.S. No. 5230/2007. The suit in question was filed by the plaintiff seeking for a judgment and decree against the defendants to recover the sum of Rs. 1,03,217.50 with future interest. The Court below after considering the rival contentions has decreed the suit directing the defendants to pay the sum of Rs. 67,700.50 with interest at 6% p.a. from 26.03.2004. The defendants have therefore assailed the judgment and decree passed by the Court below. The parties would be referred to in the same rank as assigned to them before the Court below for the purpose of convenience and clarity.

(2.) THE case of the plaintiff is that it is a Cooperative Bank registered under the provisions of the Karnataka Cooperative Societies Act. The plaintiff had undertaken construction of its building and in that regard, while obtaining the approved plan from Bangalore Mahanagara Palike, they were required to submit National Saving Certificate ('NSC' for short). Accordingly, the plaintiff approached the third defendant on 26.03.1998 and purchased 11 certificates in all amounting to a sum of Rs. 66,700/ -. The details of the certificates have been mentioned in the plaint. As per the same, the maturity value of the said certificates when they were to mature on 26.03.2004 would be in a sum of Rs. 1,34,400.50. It is in that context, the plaintiff on maturity had approached the third defendant for payment of the matured amount. The Senior Superintendent of Post Offices is said to have addressed a letter to the plaintiff on 11.01.2005, wherein it has been stated that as per the Rules, there was no provision for issuing NSCs to the institutions. Hence, in that context, the defendants replied to the plaintiff stating that the maturity value cannot be paid nor can any interest be paid on the said amount. In that context, after further correspondences between the parties, the plaintiff has filed the suit claiming the said amount.

(3.) THE Court below on taking note of the rival contentions framed as many as five issues for its consideration, which read as hereunder: