TaxTMI 
TaxTMI 
2011 (7) TMI 1403
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....e blessings of the Lord. The temple is being administered by the Hindu Religious and Charitable Endowments Department of the Government of Tamil Nadu. The devotees make offering in cash and kind to the deity. The cash offerings are collected and invested in various forms. The income derived from such investments is utilized for charitable purposes such as prasadams, hospitals, schools and orphanages. (b) According to the Appellant, it had deposited a huge sum of money totaling to Rs. 1,40,64,300/- with the Post Master, Post Office, Palani from 05.05.1995 to 16.08.1995 for a period of five years under the 'Post Office Time Deposit Scheme' (in short 'the Scheme'). On 01.12.1995, the Temple received a letter from the Post Master, Post Office, Palani-3rd Respondent herein informing that the Scheme had been discontinued for investment by institutions from 01.04.1995, and therefore, all such accounts should be closed without interest. The amount deposited by the Temple was refunded only on 03.01.1996 without interest. (c) Aggrieved by the decision of the Postal Authorities, the Appellant, on 10.01.1996, sent a legal notice to the Respondents calling upon....
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....tive Time Deposit Account c) Recurring Deposit Account d) Time Deposit Account and it came into force with effect from 01.04.1982. Among various Rules, we are concerned with Rules 16 & 17 which read as under: 16. Accounts opened incorrectly.-(1) Where an account is found to have been opened incorrectly under a category other than the one applied for by the depositor, it shall be deemed to be an account of the category applied for if he was eligible to open such account on the date of his application and if he was not so eligible, the account may, if he so desires, be converted into an account of another category ab initio, if he was eligible to open an account of such category on the date of his application. (2) In cases where the account cannot be so converted, the relevant Head Savings Bank may, at any time, cause the account to be closed and the deposits made in the accounts refunded to the depositor with interest at the rate applicable from time to time to a savings account of the type for which the depositor is eligible. 17. Accounts opened in contravention of rules.-Subject to the provisions of Rule 16, where an account is found to have been opened ....
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....2010417 dt. 05.05.1995, (2) 2010418 dt. 20.05.1995, (3) 2010419 dt. 31.05.1995, (4) 2010421 dt. 14.06.1995, (5) 2010422 dt. 21.06.1995, (6) 2010423 dt. 03.07.1995, (7) 2010424 dt. 03.07.1995, (8) 2010425 dt. 11.07.1995 (9) 2010426 dt. 13.07.1995, (10) 2010428 dt. 29.07.1995, (11) 2010429 dt. 01.08.1995, (12) 2010430 dt. 07.08.1995, (13) 2010431 dt. 07.08.1985 and (14) 2010435 dt. 16.08.1995. Yours faithfully (Sd/-).... Post Master Palani 624 601 It is clear from the above communication 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 from that date. It is not in dispute that 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 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. In our case, the ....
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....able to the deposit. It was also possible for the Post Master to have ascertained from the records, could have applied the correct Scheme and if the Appellant, being an institution, was not eligible to avail the Scheme and advised them properly. Though Mr. S. Aravindh, learned Counsel for the Appellant requested this Court to direct the 3rd Respondent to pay some reasonable amount for his lapse, inasmuch as such direction would go contrary to the Rules and payment of interest is prohibited for such Scheme in terms of Rule 17, we are not inclined to accept the same. We are conscious of the fact that a substantial amount had been kept with the 3rd Respondent till 03.01.1996 when the said amount was refunded without interest. In the light of the letter dated 01.12.1995 and in view of Rule 17 of the Rules, failure to pay interest cannot be construed as a case of deficiency in service in terms of Section 2(1)(g) of the Consumer Protection Act, 1986. Both the State and the National Commission have concluded that the 3rd Respondent was ignorant of any Notification and because of this ignorance the Appellant did not get any interest for the substantial amount. We agree with the factual fin....