The Post Office Cash Certificates Act, 1917 was enforced on 19th September, 1917.The Act restricts transfer of five year cash certificates for payments standing in the name of deceased without consent of authorised officer. Prior to the enactment of the Act transfer of post office cash certificates of deceased had minimal formalities leading to unjust transfers.
Section 2 of the act prohibits the transfer of post office five year cash certificates without consent of an authorised officer. The provision strictly prohibits any such transfer without previous consent of an officer of post office specially authorised by Central Government. The assent so given shall be in writing. Here the transfer shall be inter vivos which means a transfer by way of gift and does not include a transfer by operation of law.
Though the Act under sub clause (b) of section 2 specifically applies to inter vivos transfers but incase the person making transfers dies the payment shall be made in manner as provided in The Government Savings Banks Act 1873. Provisions of the Government Savings Banks Act, 1873 shall be applied in such transactions. In case there are more than one cash certificates the consent of transfer shall be given by post master. The cash certificate shall only be transferred once these have reached maturity and not before.
The Cash certificates shall be cash deposited in bank and shall serve as security as held by Punjab and Haryana High Court in Ratan Lal vs The Custodian Of Evacuee AIR 1953 P H 134.
Thus the Post Office Cash Certificate Act necessitates any form of five year cash certificate transfer only after authorisation of an officer of the Post Office.
by Vibhuti Nakta.