Section 12 of The Government Savings Promotion Act, 1873
Payment of deposits belonging to lunatics.
If any depositor becomes insane or otherwise incapable of managing his affairs, and if such insanity or incapacity is proved to the satisfaction of the 1[Authorised Officer] of the 2[Government Savings Bank] in which his deposit may be, such 1[Authorised Officer] may, from time to time, make payments out of the deposit to 3[guardian], and the receipt of 4[such guardian], for money paid under this section, shall be a sufficient discharge therefor, Where a committee or manager of the depositor’s estate has been duly appointed, 5[payments shall be be made t] such committee or manager.
Summary
- This section applies if a depositor becomes insane or is unable to manage their own affairs.
- The bank's Authorised Officer must be satisfied with the proof of the depositor's condition.
- The bank can make payments from the account to a guardian from time to time.
- A receipt from the guardian protects the bank from future legal claims.
- If a court has appointed a specific Committee or Manager to handle the depositor's estate, the bank must pay them instead.
Practical examples
FAQ
1. Who decides if a depositor is too mentally ill to manage their account?
The Authorised Officer of the bank must be satisfied with the proof provided.
2. Can the bank make multiple payments over time to a guardian?
Yes, the law allows the officer to make payments from time to time.
3. Does a receipt from a guardian count as a full discharge for the bank?
Yes, it is considered a sufficient discharge for the money paid.
4. What happens if there is a court-appointed manager for the estate?
Payments must be made to that Committee or Manager specifically.
Test yourself
1.Under Section 12 of The Government Savings Promotion Act, 1873, what must happen before a guardian can receive payments for an insane depositor?
2.According to Section 12 of The Government Savings Promotion Act, 1873, who takes priority for receiving payments if they have been officially appointed by a court?
3.How often can the bank release funds under Section 12 of The Government Savings Promotion Act, 1873?
4.What is the legal effect of a guardian's receipt under Section 12 of The Government Savings Promotion Act, 1873?
5.Under Section 12 of The Government Savings Promotion Act, 1873, who can receive payments if NO court-appointed Committee or Manager exists?