Deposits made in post office monthly income account which was opened contrary to Rules — Depositor entitled to interest accrued on deposits. Govt. Saving Bank Act, 1879 S. 15.

The petitioner’s husband made deposits in multiple accounts
in post office monthly income scheme by opening 12 accounts. Subsequently the
accounts were converted into joint accounts. None of the post office staff
informed the petitioner that one should not invest beyond a certain amount in
joint a/c. In fact agents of post office persuaded the petitioner and her
husband to invest the amounts. When the petitioner asked for payment of the
amounts on maturity of the deposits the respondent deducted the interest amount
over and above the limit provided under the Post Office Monthly Scheme Rules.

The Court observed that it is an undisputed fact that the
petitioner has deposited different amounts into various accounts and none of
those accounts has exceeded the prescribed deposit limit. The first respondent
noticed that all the accounts were opened in the name of a single depositor in
various post offices and the amount put together exceeded the maximum amount
prescribed under the rules. Though the rules prescribed that more than two
accounts shall not be opened by any person, it was a mistake on the part of the
post master also in allowing the petitioner to open more accounts contrary to
the rules.

The petitioner contended that the agents who get com-mission
also made the petitioner and her husband to believe that there will not be any
problem if they open more accounts and they will also get interest on all the
accounts without any objection. Had there been any objection at the time of
opening of accounts or obtaining a declaration from the depositor that the
depositor did not open more than two accounts in any post office, that would
have made the petitioner and her husband to bind themselves that they have
knowledge about the rule that they should not open more accounts than two. There
was a mistake on the part of the post master also in allowing the petitioner to
open more accounts in the name of the petitioner and her husband. Therefore, as
the deposits were not made intentionally after knowing the rules, the petitioner
cannot be deprived of the interest accrued thereon.

The petitioner is entitled for interest on the entire amount
kept in the various post offices.