TRUSTEES, HINDUSTAN FERTILIZER CORPORATION LIMITED, EMPLOYEES PROVIDENT FUND, BARAUNI UNIT THROUGH ITS EXECUTIVE OFFICER D BOSE Vs. GOVERNMENT OF INDIA

JUDGEMENT

(1.) The trustees of the Employees Provident Fund of the Hindustan Fertilizer Corporation Ltd., a Government Company, have moved this Court for quashing the letters/orders dated 27.10.1986, 11.11.1986 and 15.4.1988 (Annexures 3, 6 and 15 respectively) by which the respondents-Sub-Post Master of Barauni Urvaraknagar and the Superintendent of Post Offices, Begusarai, have asked the petitioner that they should convert National Savings Certificates (VI-Issue) to National Savings Certificates (II-Issue) since as per the Government direction the petitioner is not entitled to invest provident fund money constituting employer's and employees' contribution in the purchase of National Saving Certificate (VI-Issue) bearing a much higher interest. The petitioner has also prayed for a direction on the respondents to encash all the investments made between the period 1981-82 and 1985-86 on their maturity along with interest payable under National Saving Certificate (VI-Issue). It is further prayed that if there be any delay caused in encashing their certificates after their maturity on demand a further direction be given to pay further interest on the total sum payable to the petitioner.

(2.) The petitioner is a trust constituted under the Employees' Provident Fund Act, 1952 to fulfil the obligations arising out of the said Act for the employees of Hindustan Fertilizer Corporation. The petitioner invested large sums of money, arising out of the deposit, in National Saving Certificate (VI-Issue) carrying twelve per cent interest per annum, with maturity period of six years from the date of investment. The petitioner on their investment obtained several lots of these certificates from the Post Office.

(3.) On 27.10.1986 respondent No. 4, Sub-Post Master, wrote to the petitioner-vide Annexure-3-to convert the National Saving Certificates (VI-Issue) to National Saving Certificates (II-Issue) carrying 6.5. per cent per annum on the basis of a recent guidelines of the Government dated 14.6.1986. They assailed the said letter, but the Postal authorities continued to assert their contention. On 15.11.1987 the petitioner demanded payment of four matured National Saving Certificates (VI-Issue) on their maturity along with interest payable; but respondent No. 4 refused to make payment and asked the petitioner to await orders from the Directorate. On 15.4.1988-vide Annexure-5 the respondent-Superintendent of Post Offices asked the petitioner to convert the National Saving Certificates (VI-Issue) to National Saving Certificates (II-Issue), failing which the National Saving Certificates (II-Issue)f would be discharged without payment of any interest. The petitioner had also requested the respondents to reinvest the proceeds of these National Saving Certificates (VI-Issue) in the time deposit scheme ; but on respondents' not paying heed to it, the petitioner was constrained to file the instant writ petition.