MANJEERA AKSHARA PRABHA Vs. POST MASTER HEAD OFFICE

JUDGEMENT

(1.) The complainant deposited a sum of Rs.80,00,000/- through demand draft bearing No.699725 dated 19.12.1995 with the Post Master, Sangareddy, the first opposite party and opened a Time Deposit Account for one year in the name of Collector and Chairman, Manjeera Akshara Prabha pursuant to the pamphlet issued by Commissioner, Small Savings, Tilak Road, Abids, Hyderabad. The first opposite party Post Office received the said money and issued savings bank pass book Account 5777 dated 21.12.1995. After expiry of the one year, the complainant through its letter dated 21.12.1996 requested the first opposite party to pay back the amount of Rs.80,00,000/- with interest at 10.5 per cent per annum by way of demand draft. Though a cheque bearing No.535065 dated 24.12.1996 was issued for Rs.88,73,657.60 ps. but the said cheque was returned when presented for collection with an endorsement "payment stopped by drawer". Thereupon the complainant by his letter dated 28.12.1996 requested the first opposite party to inform the reasons for stopping payment, whereupon the latter informed him that the time deposit account was opened in contravention of the rules and, therefore, the account was directed to be closed without interest. Hence payment of the cheque amount was stopped. Copy of the Accounts Officer's letter was enclosed for reference. This complaint is, therefore, filed questioning the action of the first opposite party and seeking payment of Rs.8,73,657.60 ps. with interest and damages of Rs.10,000/- and costs.

(2.) The first opposite party in its written version while admitting deposit of Rs.80,00,000/- through a demand draft dated 19.12.1995 and opening of one year Time Deposit Account in the name of Manjeera Akshara Prabha, Sangareddy stated that during inspection of Sangareddy Head Office by A. O. ICO (SB), Hyderabad Division it was pointed out that opening of account by Institutions has been discontinued from 1.4.1995 vide DG (P) No.61-11/95/sb dated 9.3.1995 and ordered that the account be closed without allowing any interest.

(3.) It is further stated that according to Ministry of Finance Notification No. GSR 118-E dated 8.3.1995 communicated in DG (P) Lr. No.61-11/95-SB dated 9.3.1995 withdrawing the facility of opening of TD Accounts by Associations, Institutions, etc. , with effect from 1.4.1995 and the accounts opened in contravention of rules are to be closed without interest, according to SB Rules by Central Government in PO SB Manual Vol. I, but according to DG Pandt Lr. No.48-54/77-SB dated 31.12.1979 and 29.8.1979 interest at the rate of 3 per cent per annum was allowed to be paid on TD Accounts opened by Companies, Societies, etc. , in contravention of rules as a special case. Hence on noticing the irregularity in opening of T. D. Account No.5177 in question, the payment of cheque issued in full payment of principal and interest at 10.5 per cent was stopped and another cheque for the principal amount of Rs.80,00,000/- was issued by the Post Master on 31.12.1996 in order to avoid inconvenience to the depositors pending receipt of a decision from R. O. Finally instructions were received from R. O. vide PMG (H)/sb-4/sgd/96 dated 6.1.1997 that interest at the rate of 3 per cent per annum should be allowed as a special case, since the first year T. D. Account No.5177 was opened in contravention of rules. Accordingly the Post Master, Sangareddy vide his letter TD/1yr/5177 dated 10.1.1997 communicated the decision for payment of 3 per cent interest on Rs.80,00,000/- and requested the complainant to take payment. Therefore, there is no deficiency in service on the part of the first opposite party. The complainant filed his affidavit evidence and also marked Exs. A-1 to A-22. The first opposite party filed counter affidavit.