On the instance of the DEATH OF PAYEE
(a) Pay, allowances or pension can be drawn for the day of a man’s death;
the hour at which death takes place has no effect on the claim.
(b) Pay and allowance of all kinds claimed on behalf of a deceased
Government servant may be paid without the production of the usual legal authority:
(a) If the gross amount of the claim does not exceed Rs. 2500, under order of
the Head of the Offices, in which the Government servant was employed at
the time of his death; provided that the Head of the Offices is otherwise
satisfied about the right and title of the claimant; and
(b) If the gross amount of the claim exceeds Rs. 2,500 under orders of
the Administrative Department of the Government on execution of an
indemnity bond duly stamped for double the gross amount due for payment,
with such sureties as may be deemed necessary:
Provided that the authority mentioned in (a) above may, subject to the
condition prescribed in that sub-clause, make anticipatory payment of an amount
not exceeding Rs. 2,500.
In any case of doubt payment shall be made on1y to the person producing the
legal authority. This will take effect from the date of issue of the orders
Relief to the family of the deceased has been provided. The unamended
rule stood as under:
(b) Pay and other allowances claimed on behalf of a deceased Government servant
may be paid without the production of the usual legal authority
(I) for the extent of
Rs. 2,500 under order of the Deputy Commissioner or other officer responsible to the
payment after such enquiry into the rights and title of the claimants as may be
deemed sufficient:
(2) for the excess over Rs. 500 under the orders of the Government
on execution of an indemnity bond with such sureties as it may require. If it is
satisfied of the right and title of the claimant and considers that undue delay and
hardship would be caused by insisting, on the production of letters of administration.
European Officer clauses not included
Disbursement of pay, pension, etc., to a lunatic
Pay, pension, gratuity, etc., payable to a lunatic may be disbursed in
accordance with the procedure laid down in Section 95 of the Indian Lunacy Act, 1912
which is reproduced below:
When any sum is payable in respect of pay, pension, gratuity or other similar
allowance to any person by the Secretary of State or any Government in British India
and the person to whom the sum is payable is certified by a Magistrate to be lunatic,
the Government officer under whose authority such sum would be payable if the
payee were not a lunatic may pay so much of the said sum as he thinks fit to the
person having charge of the lunatic, may pay the surplus, if any, or such part thereof
as he thinks fit for the maintenance of such members of the lunatic’s family as are
dependent on him for maintenance.
The Secretary of State or, as the case may be, the Government concerned shall be
discharged of all liability in respect of any amounts paid in accordance with this
section.”
Bond of Indemnity for drawing leave-salaries, etc.
(a) Government servants often make arrangements with their agents to
draw their leave salaries or vacation pay, pensions, etc., either granting them powers
of attorney to enable them to do so, or leaving their bills ready signed in the agent’s
custody for presentation, the agents in their turn giving Government a bond of
indemnity as security against any loss in case of over-payment.
Note. A Register of powers of Attorney will be kept by the Treasury Officer in the form
prescribed in paragraph 57 of the Government Securities Manual.
(b) The bond of indemnity, which must be stamped, may be of the following form
in the case of a firm bank:
“In consideration of our/their being permitted to draw the pay/leave salary/pension
of ………………during his absence from the Province, we do hereby engage to refund
to Government the…………. [here insert the name of the Bank) on demand any overpayment that may be made to us/them as his agents/agent.
(c) It must of course be seen that the person signing the bond of indemnity has
authority to bind the firm or bank.
(d) It is not necessary, however, for a separate bond to be entered into in the case
of each individual Government servant. Agent of standing and respectability may, for
the purpose, be allowed to enter into a general agreement Financial Rule Form No.8.
Note. The form of the bond requires advice to be sent to the Audit Officer of any
change in the constitution of a firm to which the bond refers. When such advice is
received a recognition of the existing agreements that have been entered into previous
to the change in the partnership should be obtained either by calling for fresh
agreements to be executed by the new partnership or by obtaining an
acknowledgment from the new partnership that they are bound by the existing
agreements of the partnership or otherwise.
(e) Agents of standing and respectability are also allowed to execute a single bond to
cover the leave salaries, pensions, etc., of their constituents. Arrangements for the
execution of such a bond must be made with the Finance Department. For the
purpose of this rule such banks as are included in the Second Schedule to the
Reserve Bank of India Act, 1934, will only be allowed to execute a general bond of
indemnity regarding payments chargeable to provincial revenues.
NOTES
The Finance Department had now assumed authority for arranging execution of a single bond of indemnity by agents of standing and respect ability.
A list of the Banks who have executed such bond of Indemnity is given below:
(1) The United Commercial Bank Ltd.
(2) The State Bank of India.
Course Purchase Query 