(1.) THE petitioner has preferred the present writ petition under Article 226 of the Constitution of India to seek a direction to the respondents to release the maturity proceeds of the education bonds subscribed to by the petitioner.
(2.) THE case of the petitioner is that on 6th September 1996, he subscribed to the Education Bond issued by respondent no.2 Industrial Finance Corporation of India Ltd. (IFCI), in the name of his grand- daughter, who at that time was only two years of age, in order to ensure availability of finance at a later stage for continuing her education. The term of the bond was 13 years. However, the bonds were redeemable at the option of the subscriber, or at the option of IFCI earlier. The relevant clause in this respect, contained in the bond, reads as follows: "The holder(s) of this Bond and IFCI shall have the option to redeem the Bond on any of the following dates at the deemed face value mentioned, provided annual redemptions under the scheme have not started: Early Redemption Deemed Face Applicable to Date Value (per bond) on Sept. 6, 2000 at Rs.11,000/- wait period 13/11/9 years on Sept. 6, 2004 at Rs.20,000/- wait period 13/11 years on Sept. 6, 2008 at Rs.37,000/- wait period 13 years On receiving the amount by the Bondholder(s) as specified above, on the exercise of early redemption option as aforesaid or at maturity, the liability of IFCI hereunder shall stand fully extinguished".
(3.) SECTION 205C of the Companies Act reads as follows: