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2014 (10) TMI 1031 - SC - Indian LawsPrinciples of estoppel - Payment of maturity amount of National Savings Certificate - purchase of NSC illegally - Rule 17 of the Post Office Savings Bank General Rules 1981 - HELD THAT - It is not possible for us to accept the applicability of the principle of estoppel in the facts and circumstances of this case. No representation is ever shown to have been made to the Appellant. It was the Appellant s individual decision to purchase the NSC. It is not shown that a fraudulent representation was made to the Appellant. It is also not shown that a false statement was negligently made to the Appellant. The rule of estoppel in the present case could have only been premised on some conduct of the Respondent which had willfully induced the Appellant to invest in the NSC. Unfortunately for the Appellant no such willful conduct has been brought to our notice. This case would be governed by the proposition evolved in Moorgate Mercantile Company Ltd. v. Twitchings namely where two people with the same source of information assert the same truth or agree to assert the same falsehood at the same time neither can be estoppel against the other. Therefore whilst it cannot be disputed that the authorities issuing the NSC were required to ensure that the same was issued to only such persons who were eligible in law to purchase the same yet in terms of the mandate of Rule 17 extracted hereinabove the vires whereof is not subject matter of challenge it is not possible for us to accept that the rule of estoppel could be relied upon at the behest of the Appellant for any fruitful benefit. It is indeed true that the NSC was purchased in the name of M/s. Bhagwati Vanaspati Traders. It is also equally true that M/s. Bhagwati Vanaspati Traders is a sole proprietorship concern of B.K. Garg and as such the irregularity committed while issuing the NSC in the name of M/s. Bhagwati Vanaspati Traders could have easily been corrected by substituting the name of M/s. Bhagwati Vanaspati Traders with that of B.K. Garg. For in a sole proprietorship concern an individual uses a fictional trade name in place of his own name. The rigidity adopted by the authorities is clearly ununderstandable. The postal authorities having permitted M/s. Bhagwati Vanaspati Traders to purchase the NSC in the year 1995 could not have legitimately raised a challenge of irregularity after the maturity thereof in the year 2001 specially when the irregularity was curable - Legally Rule 17 of the Post Office Savings Bank General Rules 1981 would apply only when an applicant is irregularly allowed something more than what is contemplated under a scheme. There was seriously no difficulty at all in the facts and circumstances of the present case to regularize the defect pointed out because M/s. Bhagwati Vanaspati Traders is admittedly the sole proprietorship concern of B.K. Garg. The postal authorities should have solicited the change of the name in the NSC through a representation by B.K. Garg himself. On receipt of such a representation the alleged irregularity would have been cured and the beneficiary of the deposit would have legitimately reaped the fruits thereof. Rather than adopting the above simple course the postal authorities chose to strictly and rigidly interpret the terms of the scheme. This resulted in the denial of the legitimate claims of the sole proprietor of the Appellant concern i.e. B.K. Garg of the investment made by him. In the above view of the matter we consider it just and appropriate in exercise of our jurisdiction Under Article 142 of the Constitution of India to direct the Senior Superintendent of Post Offices Meerut to correct the NSC issued in the name of M/s. Bhagwati Vanaspati Traders by substituting the Appellant s name with that of B.K. Garg - The irregularity having been cured we hope that B.K. Garg will now be released all the payments due to him in terms of the order passed by the District Forum. Appeal allowed - decided in favor of appellant.
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