Cuttack: In a significant judgment, the Orissa High Court has allowed a bribe to prematurely withdraw her fixed deposits to cover urgent wedding expenses, overturning the postal authorities’ strict interpretation of the National Savings Time Deposit Scheme, 2019.
The petitioner, Priyadarsini Das, had invested in five fixed deposits under the 2019 Scheme, each with a tenure of five years. She had sought permission to prematurely encash those due a wedding in the family, but her request was denied by the authorities. Consequently, she filed a case in the High Court.
The postal authorities argued that withdrawals before four years were prohibited, referencing an order from November 14, 2023. Her counsel cited pressing familial obligations and referred to the amended Rule 8(d) of the scheme, notified on November 7, 2023, which provides for premature withdrawal after four years, albeit at a lower rate of interest.
The single judge bench of Justice Dixit Krishna Shripa held that Rule 8(d), as subordinate legislation, should not be rigidly interpreted, stressing the rule’s focus on interest rates for withdrawals after four years and not absolute ban on earlier encashment. “It is only in the nature of subordinate legislation, which needs to be interpreted with a bit of leniency, such leniency availing from its very text. It does not begin with negative phraseology, such as ‘No premature encashment/withdrawal of deposit is permitted,” he noted.
Citing traditional Hindu law principles, Justice Shripad recognised emergencies, social obligations, and family needs as valid reasons for financial flexibility. He further emphasised that the funds belonged to Das, not the postal authority. “After all, the funds in deposit belong to her and not to the entity, which holds her money in deposit. Ordinarily, owner of a thing is entitled to make use of it in any way he/she desires, unless the law otherwise provides for,” he remarked.
The court quashed the postal authorities’ impugned letter dated August 5, 2025, and issued a writ of mandamus, directing the chief postmaster general (Bhubaneswar), post master of HSG post office (Paradip), and postmaster of Barakolikhola to process the withdrawal within two weeks. It also warned that any delay would attract personal liability for the officials, with a 1% per month interest penalty.