SUMAN KUMAR BANERJEE Vs. UNION OF INDIA

JUDGEMENT

(1.) THERE are three Agency Systems to promote Post Office Small Savings schemes of the Central Government, viz (1) Standardised Agency System (hereafter SAS) (2) Public Provident Fund (hereafter PPF) Agency System and (3)Mahila Pradhan Kshetriya Bachat Yojana (hereafter MPKBY) Agency System. A female agent can obtain all the three agencies while a male agent can have only the first two agencies. For canvassing small savings schemes, the agents are paid commission at such rates prescribed from time to time for various savings schemes. The commission for various schemes is paid to the agents at source at the time of depositing money with the post offices or banks where the schemes are being operated. SAS is confined to canvassing for sale of Kisan Vikas Patras, National savings Certificates (VIII-Issue), Deposits in Time Deposit Accounts, Monthly income Scheme Accounts and Senior Citizens Savings Scheme Accounts whereas under MPKBY Agency System only women agents are appointed to canvass for deposits in Post Office 5-Year Recurring Deposit Accounts. The PPF Agency system is confined to only deposits in PPF accounts. At the time of appointment, the SAS and MPKBY agents are required to execute an agreement with the Government which contains the terms and conditions of the agency. For PPF agency, no formal agency agreement is required to be executed but the agents are required to accept and sign the terms and conditions of the agency in the prescribed form (source: Hand Book for Post office, Part VI 2005-06, by Sri A. N. Dureja ).

(2.) THE 15 (fifteen) petitioners herein claim to be agents under the aforesaid agency Systems of Post Office Small Savings Schemes introduced by the Central government. SAS agents are appointed by the State Government (paragraph 5 of chapter 6 of the Hand Book referred to supra ). Certificate of authority to act as agents has been issued in favour of the petitioners by the concerned officer attached to the Finance (Small Savings) Department, as is revealed from the certificates annexed to the petition. Similar certificate has been issued in favour of agents under MPKBY agency system. The petitioners have averred that as agents they are required to collect and deposit money which the depositors intend to invest in various schemes such as (1) Time Deposits (2) Monthly income Scheme (3) Kishan Vikas Patras (4) National Savings Certificate (VIII issue) and (5) Deposit Schemes for Retiring Employees of Government and Public sector Companies. According to them, on collection of deposits they are paid commission.

(3.) IN paragraph 5 of the petition the instructions which the petitioners in discharge of functions as agents under the aforesaid agency systems are required to follow, compiled from circulars and forms issued from time to time, have been pleaded. Chapter 2 of the Hand Book referred to supra lists those instructions as the ones which the SAS agents are required to follow together with other instructions which MPKBY agents are required to adhere to which, however, have not been pleaded. An amendment has been introduced by the Government of India, Ministry of Communication and IT, Department of Posts in Rule 33 of the Post Office savings Bank Manual, Volume 1 (hereafter the Manual ). A directive has also simultaneously been issued. The petitioners are aggrieved by the amendment/directive and hence have jointly preferred this petition. Rule 33 of the Manual originally read as follows: