9911796707
TMI Blog2000 (8) TMI 1149X X X X Extracts X X X X X X X X Extracts X X X X ..... e date of opening of the account provided that interest at the rate of Post Office Savings Account shall alone be payable on premature closure of the account. Rule 9A was amended by Notification dated 4-11-1999. By this amendment, the facility of premature closure was taken away. Therefore, the petitioners filed the original petition for the issuance of direction to the respondents to allow the petitioners to have premature closure of the recurring deposits maintained by them with the third respondent as allowed in unamended Rule 9A of the Post Office Recurring Deposit Rules, 1981. 2. The respondents in the original petition filed a counter-affidavit stating that it is the amended Rule 9A that is applicable to the deposits made by the petit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntral Government to make Rules for carrying out the purpose of the Act. It is also contended that the statutory form for receiving deposits provide for an undertaking that the deposit holders would agree to abide by the Rules framed by the Central Government from time to time. It is the case of the appellants that once the Rules are amended, the depositors are prevented from closing the account prematurely even though at the time when they started the account the, Rule was that they could close the account after one year. It is further contended that the savings Bank account is operated on the basis of a contract executed between the parties and in the contract there is a clause requiring the depositors to abide by the Rules in force from t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the amended Rules are intended to have effect for deposits which were already commenced prior to the amended Rules. Even according to the Central Government Standing Counsel, it is only a contractual liability and merely because the appellants have got the power to amend the Rules unilaterally, it cannot be presumed that such amendments should affect, without anything more, the existing accounts started under the unamended Rules. 6. As already noticed by the learned single Judge, the source of the Rule making power is Section 15 of the Government Savings Bank Act. It does not give any power to make Rules with retrospective effect. The amendment also does not show that they are made with retrospective effect. Since the appellants case is tha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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