Appeal No. 2005-2642
Reexamination Control No. 90/005,841
‘B’ accounts suffered a death blow when ‘A’ accounts, which provided full
indexing, were freed from taxation. Mukherjee at 56, 2d para.
Under the heading “Sudden death,” Mukherjee explains that in March 1968, a
stabilization agreement signed by the central trade union and employer organizations
abolished the system of index linkage for wages, rents, business contracts, bonds, and
bank deposits and precluded the index clause from being applied to bank deposits after
November 30, 1968. Id. at 56, 4th para.
In the discussion of inflation-indexed government and industry bonds, Mukherjee
notes that “[b]anks and cooperative credit societies needed the income from index
bonds to held pay compensation on indexed deposit accounts,” id. at 59, 1st full para.,
and in the discussion of inflation-indexed loans further explains:
Banks started to make indexed charges on loans when their
indexed deposit business became of appreciable size. In the savings and
cooperative bank sector this was in 1956. Similar charging arrangements
by the commercial banks did not come into operation until rather more
than a year after that. This part of the banking sector had interrupted this
business for a year, and initially were able to cover indexed payments to
depositors with income from their holdings of government indexed bonds.
The Post Office Bank usually tied its
loans 25 per cent to
the cost-of-living
index. All other
banks operated on
the principle of
calculating an index
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