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TMI Blog2022 (7) TMI 290X X X X Extracts X X X X X X X X Extracts X X X X ..... liable to any attachment in respect of any debt or liability incurred by the account holder. Thus, the action of the respondent Bank of withdrawing/debiting the aforesaid amount from the PPF Account of the petitioner is illegal and unjustified. Under the circumstances, the respondent Bank is directed to deposit the amount of Rs.85,380/- within a period of four weeks in the Savings Bank Account in the name of Rajnikant Punjalal Shah HUF with the Bank of Baroda, Law Garden Branch, Ahmedabad. It is clarified that the observations made by this Court may not be construed adverse to the respondent Bank in any other proceedings. - R/SPECIAL CIVIL APPLICATION NO. 10377 of 2020 - - - Dated:- 23-6-2022 - HONOURABLE MR. JUSTICE A.S. SUPEHIA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y attachment in respect of any debt or liability incurred by the account holder hence, the PPF account is protected against any kind of recovery, debt etc. 3.1 It is submitted that due to the pandemic situation and economic condition of the petitioner and other coparceners of the HUF required the fund urgently and, therefore, wanted to withdraw the fund lying in the PPF Account and thus, the petitioner approached the respondent Bank to withdraw the amount of the PPF Account on 26.06.2020. Learned advocate has submitted that the respondent Bank has illegally and without the consent of the petitioner debited the amount of Rs.85,380/- from his PPF Account to Cash Credit Account of his partnership firm. 3.2 Learned advocate Mr.Gupta has s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on (1) of Section 3 provides that the Central Government may, by a notification in the official Gazette, frame a scheme to be called the Public Provident Fund Scheme for the establishment of a provident fund for the general public and there shall be established, as soon as may be after the framing of the Scheme, a Fund in accordance with the provisions of this Act and the Scheme. 8. Section 4 of the PPF Act, 1968 provides that any individual may, on his own behalf or on behalf of a minor, of whom he is the guardian, subscribe to the Fund in such manner and subject to such maximum and minimum limits as may be prescribed in the Scheme. Section 5 pertains to interest to be paid on such subscriptions. Section 6 pertains to withdrawals whic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ls whether employed in the public sector or not or covered under the labour welfare legislations or not. In essence, therefore, even for individuals not covered by the public employment and therefore enjoying contributory provident fund or pension scheme or organized sector, and therefore, covered under the labour welfare schemes, provides for a social security and a fund to depend upon in old age; post-retirement. 10. In case of Union of India v. Radha Kissen Agarwalla Anr., reported in AIR 1969 SC 762 , in the context of Railway Provident Fund created under the Provident Funds Act, 1925, the Apex Court observed that the Union of India was a trustee for the subscriber of the money. When the amount lying with the Reserve Bank as an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ose sums and has an interest in maintaining the objection in court to attachment. 12. At this stage, we may refer to Rule 10 of Schedule-II to the Income-tax Act, 1961. The second schedule pertains to procedure for recovery of tax. Rules contained in the schedule make detailed provisions and the manner in which tax dues of the department could be recovered from the debtors. Rule 10 thereof reads as under :- 10. Property exempt from attachment: (1) All such property as is by the Code of Civil Procedure, 1908 (5 of 1908), shall be exempt from attachment and sale in execution of a decree of a civil court shall be exempt from attachment and sale under this Schedule. (2) The Tax Recovery Officer s decision as to what prope ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to which the Public Provident Fund Act, 1968 applies in so far as they are declaring by the said Act not to be liable to attachment, shall not be liable for attachment or sale under the Code. This brings us right back to Section 9 of the PPF Act, 1968 which provides that the amount standing to the credit of any subscriber shall not be liable to attachment under any decree or order of any Court in respect of any debt or liability incurred by the subscriber. 3.4 Thus, it is submitted that the respondent Bank may be directed to refund the amount of Rs.85,380/- withdrawn from the provident fund account of the petitioner. 4. Per contra, learned advocate Ms.Nalini Lodha appearing for the respondent Bank has submitted that the action of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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