Tread­ing a Thin Line

Consumer Voice - - Interests On Wrong Investments -

As per Rule 10 of Post Of­fice Man­ual, the min­istry of fi­nance is em­pow­ered to re­lax the rule, by record­ing rea­son and jus­ti­fi­ca­tion, if any de­pos­i­tor is de­prived and un­due hard­ship is caused to him due to wrong in­vest­ment. This rule was dis­cussed in de­tail in the case of De­part­ment of Post & Tele­graph ver­sus Dr RC Sax­ena in 1997. The court, while dis­cussing the same, in­sisted that this power should be ex­er­cised by the gov­ern­ment with great cau­tion and only in the rarest of rare cases. In cases like the one dis­cussed in this ar­ti­cle, it is clear from the facts that the de­pos­i­tor opened an­other ac­count in a dif­fer­ent post of­fice and not in the same post of­fice be­cause he was well aware of the rule that one could not open two ac­counts in the same post of­fice and that his in­tent was to get in­ter­ests on dif­fer­ent de­posits.

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