ANANDA MOHAN GHOSH Vs. UNION OF INDIA

JUDGEMENT

(1.) The present writ petition has been filed by 12 teachers of Santragachi Kedarnath Institution praying, inter alia, for issuance of a writ of mandamus commanding the respondents not to give effect and|or further effect to the Director General of Posts' Letter No. 65/23/84-SB, dated 19.7.85 (copy of which is annexure 'J' to the writ petition) and to direct the respondents to pay the petitioners the face value as mentioned in the National Savings Certificate receipts on discharge and for other consequential reliefs as fully stated in the writ petition itself. It is stated that the petitioners are the permanent and approve teachers of Santragachi Kedarnath Institution. The National Savings Certificates (NSC) (V. issue) were introduced from 1st January, 1974 and their sale was discontinued with the close of business on 30.4.81. The denominations of the said NSC were Rs. 10, Rs. 50, Rs. 100, Rs. 500 and Rs. 1,000. As per National Savings Certificates (V-issue) Rules, 1973, the petitioners purchased the 7-year NSC (V-issue) from the Santragachi Post Office being satisfied with the terms and conditions of the said Certificates and in pursuance of Government of India, Ministry of Finance, Notification No. GSR, 421(E), dated 6.9.73. The aforesaid Certificates were issued in favour of the petitioners and in their individual names. In view of the aforesaid rules the petitioners along with other teachers of the said Institution applied before the Authorities concerned praying for permission for the investment of the part of the Provident Fund money in the National Savings Certificates (V-issue) by purchasing the same. Accordingly, sanction was accorded by the Additional Deputy Director of Public Instructions (Seconds Education), West Bengal, on 24.1.78 and by virtue of the said sanction of the Controlling Authorities concerned the petitioners along with other teachers of the said Institution purchased the aforesaid National Savings Certificates out of their respective Provident Fund money lying with the said Santragachi Post Office Howrah. It is further stated that the petitioners purchased the aforesaid NSC (V-issue) on 8.3.78 and the same matured on 8.3.85. Upon maturity of the said NSC on 8.3.85 the petitioners approached the Sub-Post Master of the said Santragachi Post Office for encashment of the said Certificates and the petitioners were asked to produce the said Certificates duly signed by the individual teachers. On production of the said Certificates the said Post Master refused to pay as per face value of the said Certificates to the petitioners on the ground that those Certificates were issued irregularly and the said Post Master told the petitioners that they are entitled to have the interest at, the rate applicable to Savings Bank Public Account in lieu of the stipulated rate of interest as mentioned in the Certificates. It is alleged that, the petitioners made several representations through the Secretary of the Teachers Provident and of the said Institution and the said representations were not considered properly. On 27.7,85 the petitioners made a representation through their Manager again to the respondent No. 5, the Senior Superintendent of Post Offices, Howrah Division, but to no effect. The said respondent No. 5 wrote a letter to the Secretary on 4.11.85 stating that the said Certificates were purchased by the petitioners irregularly and the petitioners were given an option that if they are agreeable to encash the said Certificates, they can get interest at the rate applicable to the Savings Bank Public Account only. There is chain of correspondence in this behalf and since nothing was done the petitioners being aggrieved filed this writ petition on the ground that the action taken by the respondents concerned for non-encashment of the NSC (V-issue) purchased by them as per stipulated amount mentioned in the said Certificates, is wholly illegal, motivated, arbitrary, mala fide, without jurisdiction and against the principles of natural justice, and the action taken by the respondents by declaring the Certificates purchased by the petitioners as irregular on the basis of the Director General of Posts' letter No. 65/23/84-SB, dated 19.7.85 is wholly illegal and mala fide as the said circular is not applicable in the case of the petitioners and further said circular was issued long after the maturity of the said Certificates issued in favour of the petitioners and as such the same is liable to be set aside and/or cancelled.

(2.) The writ petition is contested by the respondents by filing affidavit-in-opposition. It is divulged in the said A/O that case is regarding encashment of 7-year NSC (V-issue) issued from Santragachi Post Office on 8.3.78 and matured on 8.3 85. The holders of the Certificates claimed for encashment on maturity and produced the Certificates to the Sub-Post Master, Santragachi Post Office, who on checking the Certificates detected the irregularity in issuing the said Certificates as the Certificates as per Rules 6A and 10 of National Savings Certificates (V-issue) Rules, 1973, in the name of the Teachers Provident Fund were due to be issued in 7-Year (II-issue) instead of 7-Year (Vth-issue) and as such the Certificates were not accepted for encashment by the Santragachi Post Office. The Manager, Teachers' Provident Fund, Santragachi Kedarnath Institution was informed by the office of the respondents by letter, dated 4.11.85 regarding the irregularity in issuing the certificates and the petitioners are not entitled to ask for the full face value thereof as stipulated in the National Savings Certificates.

(3.) An affidavit-in-reply has also been filed by the petitioners reiterating the stand taken in the main writ petition.