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1968 (12) TMI 92

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..... lway, requesting that the provident fund payable to him on retirement may be remitted to him by Bank Draft on the District Bank, Water Street, Liverpool. After Browne retired from service, the Deputy General Manager, Eastern Railway, wrote a letter on July 27, 1955, to the Chief Accounts Officer, communicating the sanction of the General Manager for payment of the special contribution to provident fund to Browne in sterling in terms of r. 1410(1) of the Railway Establishment Code. Another communication was received from Browne (who had apparently by then migrated to the United Kingdom) on February 22, 1956, by which he requested that the amount standing to his credit in-the Provident Fund Account be remitted to the Westminster Bank, Birming .....

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..... overruled the objection observing "that the attachment issued by the Court on December 8, 1956, was perfectly in order. . . . .. the moneys attached by the Court lost their character as Provident Fund moneys long before they were attached and hence they were not immune from attachment, as claimed by the objector". The Union of India then applied to the High Court of Calcutta in revision. The High Court confirmed. the order passed by the executing court. Rule 1413 of the Provident Fund Sterling Accounts Rules, insofar as it is relevant, provides : "(1) Where under these Rules any payment is to be made to the subscriber in sterling- (a) the subscriber, prior to the date on which payment is to be made, shall send written instructions to the .....

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..... ertaken to discharge its obligation by arranging to have the amount converted into sterling and to remit it to Browne. Under s. 60 (1) (k) of the Code of Civil Procedure, 1908, read with s. 3 of the Provident Funds Act, 1925, the compulsory deposit in any recognised Provident Fund Account is exempt from attachment in execution of a decree of a civil court. Section 3 ( 1 ) of the Provident Funds Act, 1925, provides : "A compulsory deposit in any Government or Railway Provident Fund shall not in any way be capable of being assigned or charged and shall not be liable to attachment under any decree or order of any Civil, Revenue or Criminal Court in respect of any debt or liability incurred by the subscriber or depositor, and neither the Offic .....

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..... escribes or sanctions. Browne had not authorised the Reserve Bank to receive payment of the money on his behalf, nor had he sanctioned payment to the Reserve-Bank in discharge of the liability of the 'Railway Administration. Illustration (d) to S. 50 of the Contract Act on which reliance was placed by the High Court reads : A, desire B., who owes him Rs.100, to send him a note for Rs. 100 by post. The debt is discharged as soon as B, puts into the post a letter containing the note duly addressed to A." The illustration only covers cases in which a creditor has directed the debtor to send him the amount owed by the, debtor in a certain manner. Browne asked the Railway Administration by the first intimation to send the amount by bank draft a .....

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