Gulshan Malhotra vs Jagdev Malhota And Ors.
2003 Latest Caselaw 1272 Del

JUDGMENT

S.K. Mahajan, J.

1. The appellant is the widow of one Mr. Rajinder Lal Malhotra and mother of Rishi Raj Malhotra who both had died in a fire accident on 8.5.1989. The minor son of the appellant had two National Saving Certificates of the total value for Rs. 10,000/- in his name and these certificates had matured on 17.4.1990. He also had two other National Saving Certificates in his name of the total value of Rs. 15,000/- which had matured on 26.3.1991. Five other National Saving Certificates in the name of the husband of the appellant of the value of Rs. 25,000/- matured on 20.5.1993 and one certificate in the name of her husband in the sum of Rs. 5000/- matured on 22.5.1993. Certain disputes appear to have arisen between the appellant and the other LRs of the deceased and the same were referred for adjudication to an Arbitrator. The Arbitrator made and published his award in the matter of those disputes holding that the appellant would be entitled to the proceeds of the aforesaid saving certificates in the name of her husband as well as her son. The award was filed in this Court and a decree in terms of the award was passed on 28.9.1990. The appellant on 10.9.1991 made an application/ claim with the respondents for payment of the proceeds of the aforesaid national saving certificates to her on the ground that she had been declared by a Court of competent jurisdiction to be entitled to the payment of the aforesaid amount. The respondent, however, did not make payment and insisted that the claim of the appellant should be supported by the succession certificate, probate of will or letters of administration. By letter dated 6.12.1993, the appellant was, however, informed that the matter was under examination in consultation with the Ministry of Law, Justice and Company Affairs and that the documents furnished by the appellant like the decree and the award did not constitute a complete file. Letter further stated that the complete file containing correspondence relating to the appointment of the arbitrator, the arbitration proceedings and proceedings of the court from the date of the award till the award was made a rule of the Court, should be furnished to the respondent. On 14.9.1993, the appellant submitted complete arbitration proceedings to the Senior Post Master, however, the amount was still not paid and the appellant, therefore, filed an execution application for execution of the decree. In execution of the decree, the Court issued notice to the respondents directing them to deposit the amount of the aforesaid National Saving Certificate along with interest in Court. On receipt of notice, the respondents on 7.12.1999 deposited a sum of Rs. 1,07,405/- as the proceeds of the aforesaid certificates. The proceeds represented the maturity value of the said certificates but did not include interest up to the date of deposit of the amount in Court. The Trial Court by the impugned order held that as the respondent has made payment of the maturity amount of the National Savings Certificate, nothing more can be directed to be paid to the appellant and the execution was, accordingly, dismissed. Aggrieved by this, the appellant has filed the present appeal.

2. Mr. Sanjay Jain appearing on behalf of the respondent has relied upon the procedure adopted by the respondent and the relevant instructions issued from time to time to show as to how the amount covered by the National Savings Certificates is to be paid to the heirs of the deceased. It is submitted that unless supported by the succession certificate issued under the Indian Succession Act or a probate or letters of administration of the estate of the deceased, the respondent is not obliged to make payment of the proceeds of such certificates and consequently the appellant will not be entitled to any interest after the date of maturity. It is submitted that interest is payable only up to the date of the maturity of the certificates and the respondents will not be liable to make payment of any interest subsequent to the date of the maturity of the national saving certificates. He has also brought to the notice of this Court Chapter 17 of the manual of Post Office Small Savings Schemes which lays down the procedure of payment of the proceeds of six years National Saving Certificates. This manual also contains instructions issued from time to time which the department is required to follow for settlement of cases of persons who have died. According to the procedure when a claim is received supported by the legal evidence such as succession certificate issued under the Indian Succession Act or a probate of will or letter of administration of the deceased, the claimant is required to fill in the claim application in the prescribed form. Basing upon this, it is submitted by Mr. Jain that without the succession certificate or the probate, the appellant was not entitled to the proceeds of the national saving certificate.

3. I have carefully considered the arguments advanced by Mr. Jain but I am not able to make myself agreeable with the same. After a decree was passed in favor of the appellant, there was no reason for the respondents not to pay the proceeds of the national saving certificates to the person in whose favor the decree has been passed. Even assuming the respondent was required to follow the procedure laid down in the departmental instructions issued from time to time, it only requires that the claim should be supported by "legal evidence" such as succession certificate issued under the Succession Act or a probate of will or letters of administration of the estate of the deceased. The legal evidence can, in my opinion, include decree passed by a Court of competent jurisdiction. The legal evidence mentioned in the manual of procedure is only illustrative and not exhaustive. It only means that "legal evidence" will include succession certificate or probate of will or letters of administration but does not mean that decree passed by a Court of competent jurisdiction will not be "legal evidence" in support of the claim of the person who seeks the proceeds of the National Saving Certificate after the death of his/ her predecessor in interest. I am, therefore, of the opinion that after decree was passed by a Court of competent jurisdiction, in favor of the appellant, the respondent could not object to the payment of the proceeds of the National Saving Certificate to the person in whose favor decree was passed.

4. Since payment has not been made in time and delay was caused by the respondent in payment of the proceeds of the National Saving Certificates despite the appellant producing a decree in her favor, in my opinion, she would be entitled to interest on such proceeds for the period payment has been wrongfully withheld.  I, accordingly, allow this appeal, set aside the impugned order and direct the respondents to pay interest @ 6% per annum on the proceeds of the national savings certificates from the date the application/claim was made for payment of the maturity value i.e., from 10.9.1991 in the case of Rishi Raj Malhotra and from the date the certificates in the name of Rajinder Lal Malhotra had matured.  Interest will be payable up to 7.12.1999 when the sum of Rs. 1,07,405/- was deposited with the executing Court.  The payment be made within eight weeks from the date of this order.    With these observations, the appeal stands disposed of.