PRASHANT K PATEL Vs. UNION OF INDIA

JUDGEMENT

(1.) The petitioner has come with the case that the respondent had come out with a Savings Scheme in the year 1987 known as "National Savings Scheme", which will be hereinafter referred to as 'the NSS'. Under the said scheme, the petitioner's Account was opened on or about 29th October 1987 with the Navrangpura Post Office, Ahmedabad. The said Account was later on transferred to the Ellis Bridge Post Office in June 1988 and the petitioner's NSS Account No.18 with the Navrangpura Post Office was given NSS Account No.101129 by the Ellis Bridge Post Office, Ahmedabad. It is stated that the said Account was opened by the father of the petitioner Shri Kalyanji Dharamshi Kunjadia as a holder of the General Power of Attorney dt.4.2.1987.

(2.) It is stated by the petitioner that on or about 6th March 2000, the petitioner was shocked to receive a letter dated 4th March 2000 from the respondent in which it was stated that the said Account opened by the holder of Power of Attorney of the petitioner was irregular and therefore, the petitioner was requested to close the Account without interest. It is further stated that the said Account of the petitioner was opened by the father of the petitioner by using the General Power of Attorney and therefore, there was no irregularity. The petitioner then sent a letter dated 20th March 2000 to the respondent pointing out the relevant facts and requesting the respondent to continue the Account with interest as per the NSS 1987. Despite this, the respondent has sent another letter dated 21st March 2000 reiterating that the Account of the petitioner should be closed without interest. The petitioner has also stated that till the financial year 1998-99, the said NSS Account was credited with the amount of applicable interest and the balance in the said NSS Account as on 31st March 1999 was Rs.3,63,992.00. It is also submitted that various amounts have been deposited in the said NSS Account of the petitioner from 1987 to 1992 and the amounts were deposited in the NSS Account on the basis of the representations made by the respondent in the NSS that the amounts deposited in the said Scheme were deductible for the purpose of Income tax and accordingly such deposits were made. After having credited the interest in the NSS Account of the petitioner from 1987-88 till 1998-99, the respondent now cannot close the Account of the petitioner without interest. In these circumstances, the petitioner has filed the present petition with the prayers as under:

(3.) No reply has been filed in response to the Rule issued by this Court, but Ms.P.J.Davawala appearing on behalf of the respondent argued the matter on the basis of the instructions received from the respondent. On the basis of these instructions, Ms.Davawala has argued that the Account which was opened in the name of the petitioner by the petitioner's father on the basis of the Power of Attorney has been treated as irregular and therefore, the petitioner was asked to close the Account inasmuch as in the General Power of Attorney, there was no such specific power given to the petitioner's father for opening the NSS Account. Her contention is that there should have been a Special Power of Attorney for the purpose of opening the NSS Account or a special clause to this effect in the General Power of Attorney.