LexaceLexace Ask the AI ›
βš–οΈ Ask the AI about your situation:πŸš— Car AccidentπŸ’Ό Work / Job🏠 Housing / EvictionπŸ‘ͺ Family / DivorceπŸ“‹ Contract DisputeπŸ’° Money Owed

ARULMIGHU DHANDAYUDHAPANISWAMY THIRUKOIL, PALANI, TAMIL NADU, THR. ITS JOINT COMMISSIONER versus THE DIRECTOR GENERAL OF POST OFFICES, DEPARTMENT OF POSTS & ORS.

Citation: [2011] 10 S.C.R. 43 · Decided: 13-07-2011 · Supreme Court of India · Bench: P. SATHASIVAM · Disposal: Dismissed

Cited by 1 judgment(s) · see the full citation network in Lexace

Open in Lexace · Ask the AI about this case

Judgment (excerpt)

[2011) 10 S.C.R. 43 
ARULMIGHU DHANDAYUDHAPANISWAMY THIRUKOIL, 
A 
PALANI, TAMIL NADU, THR. ITS JOINT COMMISSIONER 
v. 
THE DIRECTOR GENERAL OF POST OFFICES, 
DEPARTMENT OF POSTS & ORS. 
(Civil Appeal No. 4995 of 2006) 
8 
JULY 13, 2011 
[P. SATHASIVAM AND A.K. PATNAIK, JJ.] 
Consumer Protection Act, 1986 - s. 2(1)(g) - Deficiency C 
in service - Deposit of huge amount by the appellant-temple 
for five years under the Post Office Time Deposit Scheme -
Appellant informed by Post Master that the Scheme had been 
discontinued for investment by institutions, thus amount 
deposited by temple refunded without interest - Complaint D 
filed by the appellant claiming interest on the ground of 
deficiency in service on part of the Post Master - Dismissed 
by the State Commission as also National Commission - On 
appeal held: In the light of the communication dated 
01. 12. 1995 and in view of r. 17, failure to pay interest cannot E 
be construed as a case of deficiency in service in terms of s. 
2(1)(g) - The factual finding arrived at by the State and the 
National Commission that the Post Master was ignorant of any 
Notification and as such the appellant did not get any interest 
for the substantial amount are upheld and thus, the F 
respondents cannot be fastened for deficiency in service in 
terms of law or contract - Post Office Savings Bank General 
Rules, 1981 - r. 17. 
Appellant-Temple had deposited a huge sum of 
money amounting to Rs.1,40,64,300/- with the Post Master G 
from 05.05.1995 to 16.08.1995 for a period of five years 
under the Post Office Time Deposit Scheme. The Post 
Master, Post Office accepted the said amount under the 
43 
H 
44 
SUPREME COURT REPORTS 
[2011] 10 S.C.R. 
A 
Scheme and issued the receipt for the same but later it 
was found that the Scheme had been discontinued for 
investment by institutions from 01.04.1995 and as such 
the amount deposited by the Temple was refunded 
without interest. The appellants filed complaint claiming 
B 
interest on the ground of deficiency in service on the part 
of the Post Master. The State Commission as also the 
National Commission dismissed the same. Therefore, the 
appellants filed the instant appeal. 
c 
Dismissing the appeal, the Court 
HELD: 1.1 Since the deposits in the case on hand 
relate to Post Office Time Deposit Account, Rule 17 of the 
Post Office Savings Bank General Rules, 1981 is squarely 
applicable. The reading of Rule 17 makes it clear that if 
D any Account is found to have been opened in 
contravention of any Rule, the relevant Head Savings 
Bank may, at any time, cause the account to be closed 
and the deposits made be refunded to the depositor 
without interest [Para 6) [50-F-G] 
E 
1.2 It is clear from the communication dated 
.01.12.1995 of the Post Master 3rd respondent that with 
effect from 01.04.1995 i.e. even prior to the deposits made 
by the appellant-Temple, investment by institutions under 
the Scheme was not permissible and in fact discontinued 
F 
from that date. The appellant-Temple is also an institution 
administered and under the control of the Hindu 
Religious and Charitable Endowments Department of the 
State. Vide the above said communication, the Post 
Master, Palani informed the appellant to close all those 
G accounts since the same was not permissible. The 
communication dated 01.12.1995 also shows that all such 
accounts should be closed and the amounts so 
deposited are to be refunded without interest. The deposit 
accounts have been caused to be closed and the 
H 
ARULMIGHU DHANDAYUDHAPANISWAMYTHIRUKOIL, PALANI, 
45 
TAMIL NADU, THR. ITS JOINT COMM. v. DIR. GEN. OF POST 
OFFICES, DEPT. OF POSTΒ· 
amounts deposited have been returned to the depositors 
A 
without interest. Though the appellant claimed interest 
and insisted for the same on the ground of deficiency in 
service on the part of the Post Master, Palani, in view of 
Rule 17, the respondents are justified in declining to pay 
interest for the deposited amount since the same was not 
B 
permissible. In the light of Rule 17 of the Rules, it cannot 
be held that there was deficiency in service on the part 
of the respondents, 3rd respondent in particular. [Para 7] 
[52-C-G] 
c 
Postmaster Dargamitta, H.P. 0., Ne/lore vs. Raja 
Prameeelamma (Ms.) (1.998) Β·9 SCC 706 - held applicable. 
Β· 1.3 It is true that when the appellant deposited a huge 
amount with the 3rd Respondent from 05.05.1995 to 
16.08.1995 under the Scheme for a period of five years, 
D 
i

Excerpt shown. Read the full judgment & AI analysis in Lexace.