UNION OF INDIA Vs. BAKSHI RAM AHUJA

JUDGEMENT

(1.) This revision petition has been filed against concurrent orders of the fora below. The matter was heard on a few occasions and finally on 17.2.2014. Mr. Baldev Malik, Advocate for the revision petitioners and Mr. Pawan Kumar Ray, Advocate for the respondent have been heard. We have also considered the record carefully.

(2.) The matter arises from investment of Rs.3 Lacs by the respondent/complainant on 18.5.2002 in 8% RELIEF BONDS, 2002 issued by the petitioners. The investment was made in bonds of Rs.1000/- each, having maturity value of Rs.1,480.25ps. But, on completion of the period of investment, the complainant was paid in May 2007 only the invested amount of Rs.3 Lacs. Interest on the amount deposited was denied on the ground of the investment having been made in violation of the Ministry of Finance Notification No.F.4(5) W & M/2008 dated 22nd April 2002.

(3.) Per contra, the case of the revision petitioners/OPs was that the investment of Rs.3 Lacs was in utilization of the enhanced limit of investment from Rs. 2 Lacs to Rs.3 Lacs, under the Notification of 22.04.2002. It is contended that this Notification also carried a condition that in a case of investment retirement benefits, as in the present case, the investment had to be made within three months of the date of receipt of retirement benefits. These benefits were received by the complainant on 07.02.2002. Hence, the permissible time limit for making the investment, utilising the enhanced limit, had ended on 06.05.2002. Consequently, the investment being made in violation of the Notification of 22.04.2002 was not entitled to the benefit of interest.