P L D 2018 Lahore 418 (PLP)

ALI BAQAR NAJAFI, J.

Through this constitutional petition the petitioners have made the following prayers:-- "In view of the above-said submissions, it is most respectfully prayed: (1) That the instant writ petition may very graciously be accepted with costs; (2) That the respondents may kindly be directed to refrain from reducing the above stipulated amounts payable to the petitioners respecting the above referred Defence Saving Certificates (DSCS). (3) That the respondents may very graciously be directed to pay to the petitioners the above referred stipulated amount of Rs.5,25,500/- and Rs.2,62,500/- in respect of the Defence Saving Certificates (DSCS) of Rs.1,00,000/- each and Rs.50000/- each respectively, on presentation of said Certificates. (4) That any other appropriate relief which this Honourable Court deems fit in the circumstances of the case, be also awarded and accorded to the petitioner."

2. Brief facts giving rise to the filing of this writ petition are that in anticipation of a secured investment and to ensure the provision of money at the most needy time, petitioner No.1 purchased the following Defence Saving Certificates with the maturity period of 10 years on 19.04.2001:- S. No. Serial Number of Defence Saving Certificates Value of Defence Saving Certificates Date of Maturity Payable Amount 1. 869725 KA 1,00,000/- 19.4.2011 Rs.5,25,000/- 2. 869726 KA 1,00,000/- 19.4.2011 Rs.5,25,000/- 3. 869727 KA 1,00,000/- 19.4.2011 Rs.5,25,000/- 4. 869728 KA 1,00,000/- 19.4.2011 Rs.5,25,000/- 5. 869729 KA 1,00,000/- 19.4.2011 Rs.5,25,000/- 6. 869730 KA 1,00,000/- 19.4.2011 Rs.5,25,000/- 7. 391895 JA 50,000/- 19.4.2011 Rs.2,62,500/-

3. Likewise, with the same intention the petitioner No.2 also purchased the following Defence Saving Certificates with the maturity date of 17.05.2011:- No. Serial Number of Defence Saving Certificates Value of Defence Saving Certificates Date of Maturity Payable Amount 1 869731 KA 1,00,000 17-5-2011 Rs.5,25,000/- 2. 869732 KA 1,00,000 17-5-2011 Rs.5,25,000/- 3, 869733 KA 1,00,000 17-5-2011 Rs.5,25,000/-

4. However, after waiting for a long period of 10 years, the petitioners were shocked with they were paid only Rs.2,62,500 for each one lac amount of the certificates by withholding Rs.3,71,000/- on each one lac rupees. Consequently, the petitioners immediately served a legal notice upon respondent No.2/Post Master, General Post Office, Mian Channu, District Khanewal for payment of the outstanding amount but of no avail, thus they filed the present writ petition with the above said prayer.

5. In the report and parawise comments submitted by respondent No.2 the stand of the petitioners has been admitted to the extent that they were issued 10 Defence Saving Certificates with 10 years maturity period. The Certificates were presented after the date of maturity and they were informed that they will be paid the rate of profit applicable on the said date of 19.04.2001; i.e. the date of issuance of the certificates, which has been disbursed and received by the petitioners without recording any protest, therefore they cannot demand the profits mentioned at the back of the Certificates. It is also stated by the respondent's side that as per the rule 547 of the Defence Saving Certificates Rules, 1966 the payable profit has already been disbursed to the petitioners, therefore, the writ petition be dismissed. Reliance was placed upon Regulation 547 ibid.

6. Arguments heard. File perused.

7. After hearing the learned counsel for the parties, it is straightaway observed that the Defence Saving Certificates were purchased by the petitioners and the date of maturity with reference to the payable amount of profit was also mentioned at the back of the leaf indicating in clear cut terms that after 10 years the amount of Rs.5,25,000/- was payable on each Rs.100000/- which fact is not denied by the respondents. The only argument advanced by the learned Law Officer that the petitioners have duly bound themselves to any change of the rules by the respondents and, therefore, they are not entitled to such payments, is a fallacious argument as the petitioners were made to believe about the rate of profit at the time of maturity of the certificates which they cannot unilaterally change to the disadvantage of the petitioners. Secondly, prior to such change a notice was required to be served upon the petitioners to ascertain the consent so that they could encash them instead of sustaining financial loss. Thirdly, any change in the policy if made by the respondents, has to be applied prospectively on the Certificates purchased subsequent to such policy unless it is otherwise provided therein. Fourthly, no such changed policy was shown to the Court warranting the withholding of the agreed amount of profit to the petitioner.

8. Rule 547 prescribes the payment only if it is registered at the office at which it is presented after the date of maturity with the name of the purchaser corresponding with the name entered in the certificate, endorsed through the signature of the holder. Rule:547 (Discharge of certificates) taken from Volume VI of the Post Office Manual is reproduced as under:- "

547. Discharge of certificates.-(1) When the holder of a certificate presents it for discharge at the post office where it is for the time being registered, payment will be made after the certificate is examined and it is found

(a) that it is registered at the office at which it is presented, (b) that the name of the holder appearing in the application for purchase, transfer or change of name of the holder, as the case may be, corresponds with the name entered on the certificate, (c) that the certificate bears on the reverse the endorsement "Received payment of Rs Ps. ..(Rupees in words and figures) over the signature of the holder, (d) that this signature below the endorsement agrees with that obtained at the time of purchase or transfer of the certificate or change of name of the holder, as the case may be, and (e) that it has been presented after the period of non-encashability."

9. Undoubtedly, a party, in whose favour statutory presumption is raised, need not prove the fact on which it is based and the onus to rebut statutory presumption lies on the party alleging a state of facts contrary to such presumption. The argument of the respondents is, therefore, not appreciable.

10. Under rule 2 of Defence Savings Certificates Rules, 1966 a person who buys a certificate shall be bound by these rules. Under Chapter XI-PROFIT PAYABLE ON CERTIFICATES, thereof the exact amount is payable, which shall include profit and bonus on each denomination of certificate on completion of specific period from the date of issue of certificate. It is also prescribed that no profit on certificate will be encashed within first years and no profit will be payable on the encashment in excess of 10 years. The amount payable will be shown in the table year wise. Rule 44 is reproduced as under:-- "

44. The exact amounts (including profit and bonus) payable on each denomination of certificates on completion of specified periods from the date of issue of the certificates, are shown in the following table:-- Note I.-No profit is payable on any denomination of Defence Savings Certificates if encashed within the first year of issue. Note 2.

No profit or bonus is payable on any denomination of certificates for any period in excess of ten years. Amount (including profit and bonus, if any) payable on completion of each period specified in column

1. Amount payable on completion of-- Rs.5 denomi-nation Rs.10 denomi-nation Rs.50 denomi-nation Rs.100 denomi-nation Rs.500 denomi-nation Rs.1,000 denomi-nation Rs.5,000 denomi-nation Rs. Ps. Rs.Ps. Rs. Ps. Rs. Ps Rs. Ps Rs. Ps. Rs/Ps 1 year 5.15 10.30 51.50 103.00 515.00 1,030.00 5,150.00 2 years 5.35 10.70 53.50 107.00 535.00 1,070.00 5,350.00 3. years 5.60 11.20 56.00 112.00 560.00 1,120.00 5,600.00 4.years 6.00 12.00 60.00 120.00 600.00 1,200.00 6,000.00 5 years Amount (including profit and bonus pay- able on comp-letion of- 6.50 13.00 65.00 130.00 650.00 1,300.00 6,500.00 6.years 6.88 13.75 68.75 137.50 687.50 1,375.00 6,875.00 7.years 7.25 14.50 72.50 145,00 725.00 1,450.00 7,250.00 8.years 7.80 15.60 78.00 156.00 780.00 1,560.00 7,800.00 9. years 8.38 16.75 83.75 167.00 837.50 1,675.00 8,375.00 10. years 9.00 18.00 90.00 180.00 900.00 1,800.00 9,000.00 However, this table was changed into the one shown on the back of the leaf of the certificates. Besides, no where in The Government Savings Banks Act, 1873 or in The Post Office National Savings Certificates Ordinance,1944, such provisions find their mention which could permit the respondents to unilaterally change the level of profit of the purchaser of the Defence Saving Certificate.

11. The respondents are bound under Article 4 of the Constitution to act in accordance with law and the law in the present case requires them to make the payment on the profit mentioned on the certificates at the time of their maturity. The unilateral reduction in the agreed rate of profit is unconscionable, discriminatory and against public policy, therefore, is unenforceable.

12. For what has been discussed above, this writ petition is allowed and the respondents are directed to make the payments to the petitioners on the Defence Saving Certificates as mentioned at Rs.5,25,000/- for each one lac rupees after 10 years. MH/M-13/L Petition allowed.