Clubbing PPF account of self and minor children for application of prescribed limit unjustified

Fareeda Sukha Rafiq Vs Union of India (Kerala High Court)

Kerala High Court held that forfeiture of interest amount by clubbing deposits in PPF accounts of self and minor children unjustified. Also, held restrictive interpretation adopted to the application of the limit prescribed with reference to yearly deposits by clubbing accounts is incorrect.

Facts- The 3^rd petitioner is the mother of the 1^st and 2^nd petitioners. The dispute in this writ petition is with regard to the interest accrued in three separate PPF accounts opened with the 2^nd respondent herein by the petitioners.

Notably, the 3^rd petitioner started a PPF with the 2^nd respondent Post Office. Since the 1^st and 2^nd petitioners were minors during the period when account was started, and since the 3^rd petitioner also wanted to have separate savings accounts in the name of her children, she opened separate PPF accounts with the 2^nd respondent Post Office in the name of 1^st and 2^nd petitioners. Remittances were being made in the afore PPF accounts. It is straight away to be noticed that the 1^st petitioner attained majority on 24.12.2005 and the 2^nd petitioner attained majority on 26.09.2007.

The amounts lying in the PPF accounts were not withdrawn even after attaining majority, by the 1^st and 2^nd petitioners. They continued with the PPF accounts even thereafter.