MAMTA & ANR vs DIRECTOR, POSTAL SERVICE OFFICE & ORS

This revision petition has been filed by the petitioners, Smt. Mamta and Hari Prasad against the order dated 24.5.2011 of the Madhya Pradesh, State Consumer Disputes Redressal Commission, (in short, ''the State Commission.'') by which the appeal preferred by the respondents has been allowed setting aside the order dated 25.11.2009 of the District Consumer Disputes Redressal Forum, Shahdol, (in short, ''the District Forum'').

The facts of the case are that the petitioners have purchased the National Savings Certificates (N.S.Cs.) for Rs.31,000/- from the respondents and the details are given below:-

Registration N.S.C. No. The amount/value

1187 29 CC-094089 1000/-

1187 11DD-229923 5000/-

1187 25EE-600729 10,000/-

1200 11DD-229928 5000/-

1200 18EE-839207 10,000/-

The petitioner presented these N.S.Cs. on maturity for payment to the respondents and the concerned Sub Post Master Mr. S.L.Rohini, informed that as the payment would be more than Rs.20,000/- , it can only be paid through cheque. The Sub-Post Master took all the NSCs duly discharged by the petitioner.

Again on 4.1.2008 the petitioners wrote a letter to the respondent No.2 for prompt payment of the amount. The respondent No.2 through the letter No.F6-2/06-07/dava/Shahdol, dated 10.01.08, has informed the petitioners that the claim has been sent to the Chief Post Master General M.P. Circle, Bhopal for sanction and as soon as the sanction is granted the amount shall be paid to the petitioners. But further after this letter they kept silence. Being aggrieved by the delay and non-payment of the amount the petitioners have instituted a consumer complaint No.61 of 2008 before the District Forum, Shahdol.

Before the District Forum, the respondents have taken a stand that, the amount of N.S.Cs. has been paid to the petitioners on 22.04.2006 and 24.04.2006, because in the register, there is entry of acknowledgment of receiving of the amount. Further, the respondents have also taken stand, that if there is any fault on part of the then Post Master Mr. S.L.Rohini, the loss or damage caused by Rohini to the petitioners cannot be reimbursed by the Postal Department because Mr. S.L.Rohini had been dismissed from service on 10.5.2006. The respondents have denied the relief claimed by the petitioners on the basis of the Rule 26 of the National Saving Certificate (VIII-issue (Rules 1989).

After hearing both the parties and on the basis of the material on record the District Forum has allowed the claim of the petitioners by order dated 25.11.2009 and ordered to make payment of the maturity value to the petitioner within 30 days with 18% interest p.a. till the payment with cost of the litigation Rs.500/-.

It is humbly submitted that it is admitted fact that Mr. S.L.Rohini the then Post Master had committed fraud and misappropriated the amount worth Rs.50,00,000/- from 6.7.2002 to 9.5.2006 and thereafter he has been dismissed from the service. The fraud committed by the then Post Master Mr. S.L.Rohini has been taken into account in the inquiry and it has been found in the inquiry that Mr. Rohini has committed an embezzlement of huge funds.

It is clear from the letter dated 29.09.2006 sent to the Chief Post Master General, MP Circle, Bhopal, by post office Shahdol, that the maturity value of the N.S.Cs. has not been paid to the petitioners. This fact has been admitted and accepted by the respondents and now they cannot take plea otherwise or desist from their such admission.

On page 5 and 44 to 46 of the letter dated 29.9.2006, respondents have given finding that, the then Post Master Mr. S.L.Rohini has not paid the amount of N.S.Cs. to the petitioners and he himself has consumed the whole amount of the petitioners. When the Postal Department did not pay the maturity value of the N.S.Cs. submitted by the petitioners, a complaint was filed before the District Forum, which vide its order dated 25.11.2009 allowed the complaint and ordered the opposite parties to pay the maturity value of Rs.62,000/- within 30 days along with interest at the rate of 18% p.a. from the date of maturity of the N.S.Cs. along with cost of litigation Rs.500/-.

The opposite parties filed the appeal against the order of the District Forum before the State Commission, which allowed the appeal setting aside the order of the District Forum. It was also made clear in the order that if during enquiry it comes to light that the National Savings Certificates were signed under the misrepresentation made by Deputy Post Master General S.L. Rohini, the amount recovered shall be paid to the respondents. The present revision petition has been filed against the order of the State Commission.

Learned counsel for the petitioners argued that it was his legal right to get back the maturity amount of N.S.Cs along with interest. If some employee of the respondents has misappropriated this amount, the respondents are liable to pay the petitioners the maturity amount. Learned counsel also pointed out that it is common practice that the N.S.Cs. are discharged by signing by the purchasers to get the payment and as per the direction of the Department any amount more than Rs.20,000/- cannot be paid by cash and it can only be paid by a cheque, whereas in this case the alleged payment has been made by cash. The inquiry done by Postal Department clearly reveals that the amount has been misappropriated by concerned Sub Post Master Mr. S.L.Rohini, who manipulated the documents and that is why Sub-Post Master was dismissed from service. Misappropriation of funds by some employee of the organisation does not absolve the legal and financial liability of the organisation. The State Commission has greatly erred in accepting the appeal of the respondents and setting aside the order of the District Forum. The petitioners are liable to get full maturity value along with interest from the respondents.

Learned counsel for the respondents informed that there are signatures of the petitioners receiving the maturity amount in cash and the same was submitted before the State Commission. Accordingly, the State Commission was satisfied that prima facie the payment has been made. Learned counsel also admitted that for payment of more than Rs.20,000/- generally cheques are issued and Department does not allow cash payment. The Department has already proceeded against the concerned employee for recovery of embezzled amount.

After hearing both learned counsels and perusing the records, we are of the opinion that this is not disputed that N.S.Cs. for Rs.31,000/- were purchased and they got matured on 22 nd April, 2006. As respondents have admitted some fraud and misappropriation of funds by the concerned Sub-Post Master Mr. S.L.Rohini, we conclude, that the payment of the maturity amount has not yet been paid by the respondents to the petitioners. Accordingly, we are of the view that the petitioners are entitled to get the maturity value along with interest allowed by the General Rule applicable on N.S.C.s. for delayed payment. The Department of Post may continue its efforts to realise the embezzled amount from the concerned employee and this order will not affect those efforts.

In the light of the above discussions, the revision petition is allowed and the order dated 24.5.2011 of the State Commission is set aside and the order dated 25.11.2009 of the District Forum is modified to the extent that the petitioners will be entitled to get maturity value of the N.S.Cs. along with interest as payable under Rules for N.S.Cs'' delayed payment from the date of the maturity till the date of realization. The petitioners will also be entitled to cost of litigation as Rs.1,000/-. The total amount should be paid by the respondents within a period of 30 days, failing which the interest @ 12% p.a. will be payable by the respondents from the date of this order till the actual payment.