# DISPOSAL OF DEPOSITS

- **Citation:** Circular letter no 16/65
- **Court:** Allahabad High Court
- **Decided:** 1965-03-26
- **Case number:** Circular letter no 16/65
- **Source:** https://unisonlegal.in/judgment/allahabad-high-court/disposal-of-deposits-163194
- **Pages:** 3

## Text

171
9.
DISPOSAL OF DEPOSITS
(i)
Under section 83 of the Transfer of Property Act, 1882
G.L. No. 2 dated 24th June, 1908
With regard to the disposal of deposits made under section 83 of the Transfer of
Property Act, 1882, the following rules have been laid down for the guidance of
subordinate courts:
(1)
When a deposit has been made by the mortgagor, a date should be fixed,
as a matter of convenience for the withdrawal by the mortgagee, of the
deposit so made
(2)
If the mortgagee fails to appear on the date fixed, or refuses to accept the
sum deposited, the mortgagor's application should, by order, be consigned
and the money so deposited be held at the disposal of the mortgagor. If the
mortgagee, however, applies and the mortgagor consents the money
deposited may be applies to the mortgagee.
(ii)
Under section 2 of the Administration of Evacuee Property Act, 1950
G.L. No. 17/VIIIc-6 dated 6th July, 1950 read with Government of India letter No.
XXXI (pol-49)/50 G.C. dated 26th June, 1950

Under the provisions of the Administration of Evacuee Property Act, 1950 , court
deposits lying in the civil courts to the credit of evacuees fall within the definition of the
term ―evacuee property‖ [Section 2(f)x (i)], and cannot, therefore be paid to the evacuee.
They vest in the Custodian and have to be paid to him.
G.L. No. 24/VIII-e-6 dated 11th October, 1950

Deputy Custodians are permitted to inspect periodically the registers of civil
courts, prepare a list of deposits belonging to evacuees and forward a copy of the list to
the civil court concerned with a view to ensure that no unauthorized payment of deposits
belonging to evacuees are made.

Necessary facilities should be given to Deputy Custodians by courts for this
purpose.

Section 10 (f) and 45 of the Administration of Evacuee Property Act, 1950,
empower the Custodian to requisition any document from the custody of a public
servant, and confer upon him the same powers as are vested in a civil court under the
Code of Civil Procedure. The Custodian should be deemed to be a civil court for the
purposes of rule 203, Chapter VIII of General Rules (Civil), 1957 and requisitions for
records made by him should be complied with without any reference to this Court.
(iii)
Disposal of gold in the custody of courts
C.E. No. 25/VII -f-193 dated 29th April, 1966

For disposal of gold in possession of civil and criminal courts the following
instruction as contained in Government of India, Ministry of Finance, Circular letter no
16/65, dated March 26, 1965, should be followed:
172
(a)
A Court of law is not a person within the meaning of rule 126-I of the
Defence of India Rules, 1962 and hence it is not required to make a
declaration under this rule when it comes into possession of any nonornament gold, but in order to facilitate proper enforcement of the Gold
Control Rules, it is desirable that it should send an intimation of such gold
to the proper officer of the Central excise having the jurisdiction over the
area in which the court is located.
(b)
As regards the disposal of ornaments coming into their possession, the
courts cannot be treated as ̳dealers' under the Rules, as they will not be
selling the ornaments in the sense of carrying on any business. The courts
would, therefore, stand on par with private individuals. In such cases there
is no restriction regarding the purity of the gold ornaments sold. In other
words, the courts will be free to sell ornaments of over 14 caret purity as
well, to any purchase irrespective of whether he is a private individual or a
dealer. No specific exemption under the Gold Control Rules for this
purpose will, therefore, be necessary.
(c)
Sale of non-ornamental gold under rule 126-H-Sale of Non-ornamental
gold will automatically be restricted to licensed dealers only, because
under rule 126-I (3) it is an offence for any person other than a licensed
dealer, to acquire non-ornament gold, except by succession, intestate or
testamentary or in accordance with a permit granted by the Administration
in this behalf.
There is no objection to the return of gold ornaments (irrespective of purity) in the
custody of the courts without any intimation to the Central Excise Officer unless an
advice has been received by the courts from the Central Excise officer that those
ornaments were required in connection with any departmental proceedings.

The position about non-ornament gold is different. Private individual are not
entitled to acquire or receive non-ornament gold except by succession, intestate or
testamentary or in accordance with a permit issued by the Gold Control Administrator.
Only a licensed dealer in gold can receive non- ornament gold without any prior permit
and he will include the quantity so received in his monthly return.

Whenever non-ornament gold is returned, the owner, if not a licensed dealer,
should be required to obtain necessary authorisation or permit from the Deputy
Secretary, Regional Office of Gold Control Administrator, Laxmi Building, 22-Sir
P.M.Road, Bombay-1. The court concerned should send intimation to the Central Excise
Officer of the area whenever non-ornament gold is returned.

 As per G.O. No. 407/VII-541-1965, dated 24.2.1965 confiscated gold will be
transferred to the control of the Government of India, Ministry of Finance (Department
of Economic Affairs), New Delhi who will take it over at Rs. 62.50 per Tola which is
based on international price of Rs. 35 per fine oz. By IMF. The money so received from
Government of India will be credited to head ―52-Misc.‖

For disposal of silver, the Reserve Bank of India, Bombay, should first be
consulted before disposing it of in open market to avoid any undesirable effects on the
markets.
173
10.
PREPARATION OF FORMAL ORDERS
C.L. No. 1 dated 7th February, 1894
 It is the duty of Presiding Officers of subordinate courts to draw up, sign and
date formal orders, such as are referred to in the definition of ―order‖ in section 2
(14) of the Code of Civil Procedure, 1908 and rule 43 of the U.P. Insolvency Rules
contained in Appendix 17 (J).
C.L. No. 1 dated 22nd February, 1905
In all case in which a certificate or probate is issued, whether contested or noncontested, a formal order grating or refusing the certificate or probate should be prepared
under rule 43 aforementioned.
G.L. No. 6366 dated 10th December, 1927

The Presiding Officers of all subordinate courts should personally see that formal
orders are prepared wherever the law so enjoins.
11.
DECREES
(i)
Preparation
G.L. No. 394/67-2 dated 16th February, 1918
The attention of District Judges is invited to the judgment of the High Court in the
case of Dambar Singh v. Kalyan Singh (Allahabad Journal, Volume XV, pages 914-919
and I.L.R. Allahabad, Volume XL at page 109) as regards the form of the decree for costs
realizable form mortgaged property. The decree should be in the form prescribed by
Order XXXIV of the Code of Civil Procedure, and direct what property is to be sold and
the amount that is to be recovered from the property, including costs.
C.L. No. 31/VII d-166 dated 16th May, 1983 and
C.L. No. 51/VII d-166 dated 19th August, 1983
It superseded Circular Letter No. 61/IV h-36, dated 22.3.77 containing
instructions to give up the practice of mentioning the grounds of appeal and cause of
action in the Appellate Court's decrees, and invites attention of all Presiding Officers to
Form No. 9 of Appendix ̳G' of the Code of Civil Procedure which requires that the
memorandum of appeal and memorandum of expenses for taxing the costs in the decree
should also be incorporated in the body of the decree of the lower appellate court.
All the presiding officers of lower appellate courts should carefully scrutinize
these aspects where decrees in appeals are put up for their signatures by the office.
District Judges during inspection of the court under their administrative control, and to
see that memorandum of appeal and memorandum of expenses for taxing the costs in the
decrees are invariably incorporated in the lower appellate courts,' decrees and the rules
regarding the preparation of the decrees are strictly complied with.
C.L. No. 77/VII d-166 dated 7th November, 1984 and
C.L. No. 15/VII d-166 dated 29th April, 1985

The District Judges should see that the instructions contained in the aforesaid
circular letter are strictly complied with by the courts below, while preparing the lower