INSTITUTE OF CHARTERED FINANCIAL ANALYSTS OF INDIA HYDERABAD Vs. ASSISTANT SUPERINTENDENT R M S DEPARTMENT OF POSTS HYDERABAD PSOANDBMC HYDERABAD

JUDGEMENT

(1.) Both the writ petitions can be disposed of by a common order, since common question of law arises on identical facts.

(2.) The petitioner is a registered institute offering specialized Postgraduate level programmes in financial analysis to cater the growing needs of professionals in the discipline. As a part of academic development to its students both past and present who have passed out of its institute petitioner has started a monthly journal called "Chartered Financial Analysis " and registered with the Registrar of Newspapers (RNP) in the year 1995. The magazine was also registered with the Postal Department with Registration Tech/26/RNP/City/127, dated 30-8-2000. Petitioner-institute is also publishing journals, like "Study @ ICFAI'V "Portfolio Organizer", "Effective Executive", "Treasury Management" and "ICFAI Reader". All the said magazines are registered with the Registrar of Newspapers and also with the Postal Department and obtained licence from the Department of Posts for concessional postage and accordingly it circulated the said journals to its subscribers at concessional rates. The "Study @ ICFAI" has been registered with RNP as a registered newspaper at retail selling price free. On the strength of Certificate issued by the Registrar of Newspapers, petitioner wanted registration of "Study @ ICFAI" with the Postal Department for concessional posting under Registration No. H/HD-930, dated 12-1-2000 and the petitioner availing the benefit of licence in dispatching the magazines to its subscribers commencing from February, 2000 and made an application on 19-7-2000 to the Senior Superintendent of Post Office, Hyderabad-1st respondent for dispatching the "Study @ ICFAI" with prepayment on concessional postage by depositing Rs.7,500/- at the rate of Rs.0.15ps. per article for 50,000 copies taking on average. Accordingly, the 1st respondent through its Letter No.LII/RNP/H-HD-930, dated 10-10-2000 permitted the petitioner to post its mail without pre-payment at concessional rates from November, 2000 onwards and petitioner has availed such 'facility. When the petitioner-institute delivered more than one lakh copies of "Study @ ICFAI" to the Postal Department on 10-2-2001 for dispatching to its subscribers, the Postal Department accepted the same. While so, the petitioner was served with notice dated 10-3-2001 informing that as per Bill No.7, dated 17-2-2001 the magazine dispatched is charged at 0.25 ps. for 19,792 copies and 0.15 ps. for 80,315 copies, and on verification of the postings of February, 2001 issue of "Study @ ICFAI" it is noticed that the magazine infringed the conditions of Registered Newspapers and have to be charged at the revised rates at Rs.2/- for 80,315 copies and one rupee for 19,792 copies and claiming an amount of Rs. 1,63,426/- from the petitioner-Institute. To the said demand petitioner requested clarification and nature of violation for charging the revised rates, to which a reply was sent that any clarification regarding "Study @ ICFAI" may be had from Senior Superintendent, RMS, Kachiguda Station, Kachiguda, Hyderabad and posting of newspaper is not possible till the revised bill for February, 2001 is cleared. Questioning the notice dated 12-3-2001 petitioner filed W.P. No.4893 of 2001 and obtained an interim order in W.P.M.P.No.6264 of 2001, directing the respondents to accept the mail of the petitioner (which includes "Study @ ICFAI") in accordance with licences granted by the 5th respondent. It is stated that when the Postal Department refused to receive the mail for the subsequent month i.e., April, 2001 petitioner filed C.C.No.472 of 2001 wherein the Court issued notice. However, after filing contempt case Postal Department accepted the mail of the petitioner-institute, but refused to receive the journal "Study @ ICFAI". Having no other go petitioner dispatched the same by paying higher rates under protest. Meanwhile, provisional renewal was extended till 30-4-2001 in the light of judgment of the Madras High Court. On expiry of provisional extension, 1st respondent vide Letter No.LD/RNP/HD 9307 2001, dated 9-5-2001 informed the petitionerinstitute that renewal of registration of "Study @ ICFAI" English Monthly is not granted by the Chief Postmaster General, as the magazine is intended for free circulation and as such it is not eligible. Questioning the said proceedings W.P.No. 10420 of 2001 is filed contending that impugned notice is arbitrary, illegal and was issued without application of mind and contrary to the conditions under which licence is granted to the petitioner and also to the provisions of Section 9 of Post Office Act, 1898 (for short 'the Act'). Once registration is granted under Section 9 of the Act journal is entitled to concessional postage and there is no discretion left with the respondents either to grant concessional postage or not. The journal "Study @ ICFAI" is registered with the Registrar of Newspapers as a journal, which is to be distributed at free of cost and distributed the same for a period of 16 months and there was never any dispute with regard to cost of journal or its entitlement for concessional postage.

(3.) Opposing the writ petition Senior Superintendent of Post Office-1st respondent filed a counter in W.P. No.10420 of 2001 contending that sub-section (2) of Section 9 of the Act and the Rules made thereunder lay down the procedure for enabling any newspaper to avail the benefit of concessional postal charges. The magazine "Study @ ICFAI is meant for free distribution, which is evident from the entry against Column No.5 of Registration Certificate issued by Registrar of Newspapers of India, New Delhi under Registration No.71893/99 dated 12-10-1999. It is also stated that unless the magazine "Study @ ICFAI" fulfils the conditions prescribed under Rule 30 of Indian Post Office Rules, 1933 (for short 'the Rules'), petitioner is not entitled to renewal of registration, as was granted in other magazines. During the visit of SSRM, Hyderabad Division at BMC, Nampally, Hyderabad on 8-3-2001 it was noticed that "Study @ ICFAI" publishers brought around 1 lakh articles to be posted under registered Newspapers Category with concessional rates. The contents of the issue "Study @ ICFAI" from the month of March, 2001 vary from copy to copy, and two types of materials under the same title and cover page of the said magazine under Registered No.71893/99 with postal Registration No.H- HD-930/CPMG A.P. Circle Lr.No.Tech/26/ RNP/City/29 dated 30-8-2000 were noticed. Approximately 20,000 articles consist of some news related to articles and advertisements with 24 pages and the remaining approximately 80,000 articles consist of 16 pages in each copy with different material inside seem to be prospectus of a training programme, syllabus, free structure, application form etc. and the bulk mailer is using the cover page of the registered newspaper to dispatch the prospectus, application forms to various candidates at cheaper postal rates causing huge amount of leakage of revenue. Hence, ASRM, BMC directed not to accept 80,000 copies under RNP category and to collect book post rates to transmit the same. Out of 25 pages, 13 pages i.e., more than 50% contain only advertisements. As such these copies are also not satisfying the conditions prescribed for RNP i.e., containing predominantly news related articles. Accordingly, necessary instructions were given to ASRM, BMC to accept the articles under periodical category, which resulted in calculation of exact amount to be received from the mailer and to issue a notice to him to credit the amount. The interim directions granted by this Court to accept the mail of the petitioner in accordance with the licence granted has been complied with, and documents produced by the petitioner for renewal for the year 2001 were verified and found that the magazine "Study @ ICFAI does not fulfil the condition of having atlest 50 bona fide subscribers as required under Rule 30(3) of the Rules, which is evident from the entry against Column No.5 of Registration Certificate issued be the Registrar of Newspapers of India, New Delhi under Registration No.71893/99 dated 12-10-1999. It is admitted by the petitioner in para-4 of the affidavit that renewal of registration under Rule 30 -was not granted, but, in the light of instructions contained in Directorate Letter No.l6/21/99-PO dated 6-2-2001 the magazine was allowed to be transmitted at concessional rate till 30-4-2001. Rejection of renewal is strictly in accordance with Rule 30(5) and prayed for dismissal.