Procedure for Accounting Court Decree Payments and Related Budget Provisions in Department of Posts

LC-11/6/2024-SR-DOP

Computer No. 3143116

Government of India Ministry of Communications Department of Posts

PA Wing, Budget Division New Delhi-110 001

File No. LC-11/6/2024-SR-DOP

Dated: 25.10.2024

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All Heads of Circles

All Heads of PAOS

Subject: Procedure for Accounting Court Decree Payments and Related Budget Provisions -reg.

Ref: Appendix B to Civil Accounts Manual.

1. Though Appendix B to the Civil Accounts Manual provides a widespread outline regarding different types of payment in respect of the implementation of judgment, decree, or award of any Court or Arbitral Tribunal and where it should be accounted, it has come to notice that different Circles are following different methodology for making such payments. This letter is issued as per the directions of the competent authority to provide comprehensive guidelines on the matter 

2. Type of Legal Payments made by Department of Posts (To be read with terms in Appendix B mentioned above)

Type of Action	Nature of Payment	Expenditure or Deposit	Head of Account
Appeal against lower court decree- Court ordered to deposit of the decretal amount	Deposit to court awaiting final decree	Deposit	"8674-Security Deposit made by Government" in Public Account
Security deposits appropriated towards damages.	Refund of security deposit upon arbitrator's decision	Expenditure	Appropriate head in 3201(Charged)
Composite award (not split into components)	Not ear(composite)	Expenditure	Appropriate head in 3201(Charged)
Specific award with components	Refund of deposit and other expenditure	Based on components	Refund as Deduct, + Charged expenditure under 3201 (Charged)
Court Decree - not challenged (Final Decree)	Payment required to satisfy the Court decree	Expenditure	Appropriate head in 3201 (Charged)
Fee/Regular payments made to the Courts	Fees/Charges	Expenditure	Appropriate head in 3201 (voted)

3. For all final payments made as a result of a court decree, proper budgetary provision under 3201 (Charged) is required. Units/Circles should take-up the matter with the concerned Functional Division DoP HQ for allotment.

4. While making a 'Deposit' payment to Courts, it should be classified under "8674-00-101-05-00-00 Security amounts deposited with Courts". Approval of the competent authority is mandatory for such payments. It is important to note that payments under both of these heads are interim in nature and will be further classified based on the outcome of the appeal. If the decision is favorable to the Department, any amount received back from the court should be credited to the Head of Account that was debited. Conversely, if the outcome is unfavorable and no appeal is filed, the amount may be treated as expenditure and charged to the appropriate head under "3201," nullifying the debit made from MH 8674.

5. The authority that initiated the payment must closely monitor the outcome of the case and Initiate timely action for final accounting treatment accordingly.

6. All concerned authorities are requested to strictly comply with the above guidelines to ensure pan-India uniformity in this matter.

This issues with the approval of the competent authority.

Copy to for information

Signed by Aji Mathew

Date: 25-10-2024 13:44:03 (Aji Mathew) Accounts Officer (Budget)

All Functional Divisions ADG (SR&LEGAL)

I/108119/2024