Provident fund immunity from attachment continues until prescribed payment is completed, even during conversion and remittance through a bank.

Provident fund money retained under railway administration control and routed through the Reserve Bank for conversion into sterling continued to retain its provident fund character until it was converted and transmitted in the prescribed manner. The Reserve Bank acted only as the railway administration's agent for conversion and remittance, not as the subscriber's agent to receive payment. As the statutory immunity from attachment attached so long as the money had not been effectively paid out to the subscriber, the amount remained immune from execution. Section 50 of the Indian Contract Act did not assist the attaching creditor because prescribed transmission had not yet resulted in payment to the subscriber, and the attachment order was therefore illegal and without jurisdiction.

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Issues: Whether provident fund money retained under the control of the railway administration and routed through the Reserve Bank for conversion into sterling had ceased to be provident fund money so as to become attachable in execution of a decree.

Analysis: The amount remained subject to the railway administration's control until conversion and transmission to the subscriber in the manner prescribed. The Reserve Bank acted only as the agent of the railway administration for conversion and remittance, not as the subscriber's agent to receive payment on his behalf. The statutory immunity from attachment attaching to a compulsory deposit in a recognised provident fund continued so long as the money retained its provident fund character and had not been effectively paid out to the subscriber. Section 50 of the Indian Contract Act did not assist the attaching creditor because the prescribed mode of transmission had not yet resulted in payment to the subscriber.

Conclusion: The money in the hands of the Reserve Bank remained provident fund money and was immune from attachment. The attachment order was illegal and without jurisdiction.

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