GAGANDEEP KAUR GILL vs Unit Trust of India

THIS is an appeal filed against the order of District Consumer Disputes Redressal Forum-II, U.T., Chandigarh [hereinafter, for short, referred to as District Forum-II], dated 9.9.2004 of 2004, Gagandeep Kaur Gill v. The Unit Trust of India and Another.

BRIEFLY the complaint is that 5100 units under the Children''s Gift and Growth Fund, 86 (CGGF 86) were held by the complainant. These units matured on 9.7.2003. The complainant submitted these unit certificates to O.P. No. 1 Chandigarh on 9.7.2003 for payment. Since the payment was not made in a reasonable time, the complainant gave a reminder dated 12.8.2003 to the O.Ps. and finally the maturity value was paid to the complainant on 22.8.2003. The complainant has alleged delay in payment of the maturity amount as the O.Ps. took the total of 44 days to pay the maturity value instead of taking normal period of 10 to 11 days. Conceding an allowance of 14 days for processing the units for payment, the complainant avers that there is still a delay of 30 days in the payment and the O.Ps. are liable to pay interest @ 12% per annum on the maturity value of these certificates amounting to Rs. 1,85,442/- in addition to pay Rs. 5,000/- as compensation for mental and physical harassment and Rs. 1,000/- as costs of litigation. Version of the O.Ps. is that the delay of 44 days occurred due to introduction of new cash management system due to which payments of the maturity value were centralized at Mumbai. It further stated that under the system a draft dated 1.8.2003 for the maturity amount of Rs. 1,85,442.20 p. in favour of the unit holder was received by the O.Ps. and the same was received by the complainant on 22.8.2003. The O.Ps. thus claimed that there is no deficiency on their part.

The District Forum while analysing the case observed that in this age of information technology, internet and computers, the delay of one month and 13 days is unreasonable. Allowing 14 days for processing the case, it held that the O.Ps. were liable for delay of at least 30 days, which amounts to deficiency in service. Consequently, it directed the O.Ps. to pay interest @ 6% per annum w.e.f. 26.7.2003 till 21.8.2003 (both days inclusive) on the maturity amount of Rs. 1,85,442/-. It also directed the O.Ps. to pay Rs. 500/- as compensation for mental and physical harassment and Rs. 300/- as costs of litigation.

AGGRIEVED by this order, the complainant has filed this appeal. The appeal was taken on board and record of the complaint case was summoned from District Forum-II and notices were sent to the respondents. Mr. R.S. Gill, Agent of the complainant appeared on her behalf whereas Mr. Sohan Singh, an Executive of U.T.I. represented the O.Ps. Mr. R.S. Gill submitted that the O.Ps.-Unit Trust of India had offered to pay interest @ 10% per annum on the maturity amount, which was refused by the complainant but the learned District Forum awarded interest @ 6% per annum, which is much less than the one offered by the O.Ps.-U.T.I. itself. He, therefore, prayed that the interest to be paid be enhanced at least @ 10% per annum.

MR. Sohan Singh, an executive of the O.Ps.-U.T.I. did not contradict the statement made by MR. R.S. Gill. We have gone through the record of the case and also learnt the submissions of both sides. A perusal of the impugned order indicates that in addition to allowing interest @ 6% per annum the District Forum has also awarded Rs. 500/- as compensation. It is settled law that both interest as well as compensation cannot be granted as it confers double benefit to the complainant. However, it is also pertinent that this legislation being a pro-consumer Social Welfare Regulation, the learned District Forum should have taken into account the interest offered by the O.Ps.-U.T.I. to the complainant while granting relief to the complainant. In our considered view grant of interest @ 6% per annum in the background of the offer of the U.T.I. of granting 10% interest to the complainant is not fair. We, therefore, hold that the impugned order suffers from two infirmities in the grant of relief and the same need to be rectified. Consequently, the appeal is partly allowed and the impugned order is modified to the extent that the O.Ps. are now directed to pay interest @ 10% per annum w.e.f. 23.7.2003 to 21.8.2003 (both days inclusive) on Rs. 1,85,442/-. They are also directed to pay Rs. 800/- as costs of litigation. It is further directed that this order be complied with by the O.Ps. within two months from the date of its receipt, failing which it will further carry interest @ 6% per annum from that date till actual payment. The complaint stands disposed of in aforesaid terms. Parties are left to bear their own costs of litigation. This order be communicated to the parties free of charges. Appeal partly allowed.