K SUSHEELA Vs. MINISTRY OF COMMUNICATIONS

JUDGEMENT

(1.) THIS Writ Petition has been filed by the petitioner seeking to declare the action of the first respondent in issuing the proceedings dated 02. 09. 2000 denying the interest on the deposits made by the petitioner beyond the limit provided under the Rules, as arbitrary, illegal and unconstitutional.

(2.) THE petitioner's husband by name Rajamallu made deposits in multiple accounts at Mancherial, Ramakrishnapuram and Mandamarri Post Offices by opening 12 accounts under Post Office Monthly Income Scheme (P. O. M. I. S.) for a total amount of Rs. 6,18,000/ -. Subsequently, the said accounts were converted into joint accounts. Though her husband deposited the amounts in different Post offices, none of the respondents' office staff have informed that one should not invest beyond an amount of Rs. 4,08,000/- in joint account, in which event, the depositor will not get any interest on the excess amount deposited. Some of the agents acting on behalf of the respondents persuaded the petitioner and her husband to invest the amounts and also assured that one can deposit the amount they want to deposit. Accordingly, they deposited Rs. 6,18,000/- in 12 accounts. When the petitioner asked for payment of the amounts on maturity of the deposits, the first respondent through letter dated 02. 09. 2000 informed that the interest amounting to Rs. 1,27,530/- was deducted on the ground that the interest has been paid on the amount over and above Rs. 4,64,000/ -.

(3.) THE petitioner submits that Rule 12 of the Post Office (M. I. S.) Rules, 1987 deals with 'power to relax' and as per this Rule, when the Central government is satisfied that the operation of any of the provision of these rules causes undue hardship to the depositors, it may, by order for reasons to be recorded in writing, relax the requirement of that provision in a manner not inconsistent with the provisions.