Ponniyam Service Co-Operative … vs The State Of Kerala on 14 January, 2009

       

  

  

 
 
  IN THE HIGH COURT OF KERALA AT ERNAKULAM

OP.No. 26528 of 2002(G)


1. PONNIYAM SERVICE CO-OPERATIVE BANK LTD.,
                      ...  Petitioner

                        Vs



1. THE STATE OF KERALA, REPRESENTED BY ITS
                       ...       Respondent

2. THE PRINCIPAL SECRETARY (FINANCE)

3. DISTRICT TREASURY OFFICER, KANNUR.

                For Petitioner  :SRI.M.SASINDRAN

                For Respondent  : No Appearance

The Hon'ble MR. Justice S.SIRI JAGAN

 Dated :14/01/2009

 O R D E R
                              S. Siri Jagan, J.
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                       O.P. No. 26528 of 2002
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                 Dated this, the 14th    January, 2009.

                             J U D G M E N T

Petitioner is a co-operative society. Pursuant to a direction from

the Department of Co-operation of the Government of Kerala, the

society made a fixed deposit of a sum of Rs.15,32,300/- with the

Government on 13-7-2001, which was renewed with effect from 17-6-

2001 for a period of one year. The rate of interest assured for the

deposit was 13% p.a. The deposit became due for payment to the

petitioner on 17-6-2002. On maturity of the deposit, the petitioner

approached the 3rd respondent for payment of the amount. However,

on account of restriction of Treasury payments, the amount was not

paid. Ultimately, the amount was paid only on 12-8-2002. However,

the interest as on the date of payment was not paid, but interest was

paid only up to the date of maturity, namely, 17-6-2002. The

petitioner submits that since the non-payment was not due to any fault

of the petitioner, the petitioner was entitled to interest up to the date

of payment and therefore the respondents are liable to pay to the

petitioner interest on the above said amount for the period from 17-6-

2002 to 12-8-2002 also.

2. Learned Government Pleader, on instructions, submits that

as per G.O(Rt) No. 1613/03/Fin. dated 5-3-2003, the Government has

already issued orders directing payment of interest up to the date of

payment also. Counsel for the petitioner does not have any

information regarding the same. In the above circumstances, the

original petition is disposed of with a direction to the respondent to

see that the interest for the period from 17-6-2002 to 12-8-2002 is

also paid to the petitioner, if not already paid, as expeditiously as

O.P. No. 26528/2002. -: 2 :-

possible, at any rate, within one month from the date of receipt of a

copy of this judgment.

Sd/- S. Siri Jagan, Judge.

Tds/