GUJARAT REVENUE TRIBUNAL Vs. UNION OF INDIA

JUDGEMENT

(1.) The petitioner is a association of advocates practicing in Gujarat Revenue Tribunal, at Ahmedabad. The association decided to invest some amount with the Postal Department by purchasing Kisan Vikas Patra [ SKVP for short] and in pursuance of the said decision, it purchased KVP worth Rs.30,000=00. The KVP were to mature in the month of December, 2005. Upon the prescribed time being over, the petitioner requested respondent no. 3 to release the amount of Rs.60,000=00 which the association is entitled to receive upon maturity of the KVP. However, at that time, it was learnt that under the scheme of KVP only individual and a trust registered under the Bombay Public Trust were entitled to invest. The respondents after due consultation inter-se decided that the petitioner cannot be given benefit of KVP and they refused to pay interest thereon. Hence, this petition.

(2.) I have heard Mr. Trilok Patel learned advocate for the petitioner and Mr. A. M. Mithani learned advocate for the respondents. It is submitted by Mr. Patel that once having accepted the amount for investment under KVP scheme, the respondents now cannot turn around and refuse to make the payment of interest thereon. As against that, Mr. Mithani, has submitted that when the petitioner association is not entitled to invest under the scheme, the investment itself was illegal and no interest could be paid by the respondents. Mr. Patel has placed reliance on the decision rendered by the learned Single Judge of this Court in the case of Mahila Sewa Sahakari Bank Ltd., v. Chief Post Master, Ahmedabad & Ors., reported in 2007 (2) GLR pg. 945. While rendering the said decision, the learned Judge has placed reliance on the decision of the Division Bench in Letters Patent Appeal No. 1509/2004 in Special Civil Application No.2877/2003 and in particular the following observations.