POST MASTER GENERAL, H.P. CIRCLE, SHIMLA vs H.P. KHADI And VILLAGE INDUSTRIES BOARD

THIS appeal has been filed by the appellants/opposite parties (hereinafter to be referred to as the Postal Authorities) against the order of the District Forum, Shimla, dated 13.5.1998, whereby the District Forum has held that the appellants shall jointly and severally be liable to make the payment of interest @ 12% per annum from 24.3.1990 to 20.8.1991 on the total amount of Rs. 24.18 lakhs within 30 days and in case of failure to make the required payment, they will attract the provisions of Sections 25 & 27 of the Consumer Protection Act, 1986.

THE brief relevant facts giving rise to the present appeal are that the respondent-HimachaI Pradesh Khadi & Villate Industries Board (hereinafter to be referred to as the complainant) purchased National Saving Certificates (VIth Issue) for Rs. 12,00,000/- on 23.3.1984 from the Sub-Post Office, Chaura Maidan, Shimla (appellant No. 2) and the date of maturity of these certificates was 23.3.1990. However, it was discovered by the appellant-Postal Authorities that these certificates have been purchased by the complainant in contravention of the National Saving Certificates (VIth Issue) Rules, 1981 (hereinafter to be referred to as the rules), as the certificates could be purchased either by a single person or two persons and not by Banks, Boards, Corporate Bodies etc. and consequently the appellant-Postal Authorities informed the complainant as far back as in October, 1984 that such certificates have been wrongly issued in contravention in of the rules. It appears that since the complainant was not entitled to the payment of interest on such investment as the National Saving Certificates (VIth Issue) having been purchased in contravention of the Rules, these certificates were initially converted into National Serving Certificates (IInd Issue) by the Postal Authorities. THE complainant, however, did not agree and finally vide their letter dated 25.7.1989 (Annexure A-2) requested the Postal Authorties to reconsider the matter with a view to help the low paid employees of the Board who are not entitled to any other retirement benefits and to regularise this investment of Rs. 12.00 lakhs in the VIth Issue (six years) to save the Board as well as individual employees from the loss. THE conversion of National Saving Certificates (VIth Issue) into IInd Issue would have given the employees the lower rate of interest. THE case for regularisation was sent to the Government of India, Postal Department, and the Ministry of Finance ultimately regularised the 6th Year National Saving Certificates (VIth Issue) for the face value of Rs. 12.00 lakhs irregularly issued in favour of the Chairman, Employees Provident Fund Trust, Shimla, purchased on behalf of the H.P. Khadi & Village Industries Board vide letter dated 23.4.1991 (Annexure R-1II). However, the payment of post-maturity interest was not agreed to. Consequent upon the issue of mis letter (Annexure R-III) for regularisation, the payment of these certificates (VIth Issue) was made to the complainant on 21.8.1991. The contention of me learned Counsel for the appellants that the complainants themselves have contributed to the delay in issue of letter of regularisation of National Saving Certificates (VIth Issue) dated 23.4.1991 (Annexure R-III) since they applied for such regularisation on 25.7.1989, cannot be accepted.

The question of payment of interest would depend upon whether the appellants have been negligent in not issuing the letter of regularisation (Annexure R-III) within time or reasonable period, and whether there has been deficiency in service. In this context it may be noticed that the complainant vide letter dated 25.7.1989 (Annexure A-2) did not agree to the conversion of National Saving Certificates (VIth Issue) to IInd Issue, as that would have resulted into loss of interest to the low paid employees who are not entitled to other retirement benefits and as such requested for regularisation of these Certificates of VIth Issue. The date of maturity of these National Saving Certificates was 23.3.1990 and about 8 months earlier to the date of maturity, the matter was taken up by the complainant with the Central Government vide letter dated 25.7.1989 (Annexure A-2) and copies thereof were given to the Post Master General, Chaura Maidan and other appellants. In fact, the Post Master General and Sub-Post Master, Chaura Maidan, Shimla, from where these certificates were purchased were made aware of such a letter by sending copies to them. There is no material on the record to show that the Post Master General and Sub- Post Master, Chaura Maidan took any steps to pursue the matter for regularisation of Certificates as VIth Issue. There is further no material on the record to show as to what transpired between 25.7.1989 till the date of issue of the letter by the Central Government dated 23.4.1991 (Annexure R-III) whereby the regularisation was decided by the Central Government of the National Saving Certificates (VIth Issue) issued to the complainant. In our opinion, the Central Government should have decided the matter of regularisation within time or reasonable period, as the date of maturity of these certificates i.e. 23.3.1990 was well within their knowledge. The National Saving Certificates (VIth Issue) were, however regularised on 23.4.1991 and after 25.7.1989 almost after a period of 1 year 8 months or so which cannot be considered as reasonable and just. The negligence of the appellants in issuing such letter at a belated stage and their deficiency is writ large on the face of it. The stipulation made in the letter dated 23.4.1991 (Annexure R-III) that post maturity interest shall not be payable to the complainant is wholly arbitrary and cannot be enforced.

THE Central Government under Rule 32 of the National Saving Certificates (VIth Issue) Rules, 1981 have been given power to relax the rules, wherein it has been provided that if the Central Government is satisfied that the operation of any of the provisions of these rules causes undue hardship to the holder or holders of a certificate, it may be order for reasons to be recorded in writing, relax the requirements of that provision in a manner not inconsistent with the provisions of the Act. THE Central Government while regularising the National Saving Certificates (VIth Issue), presumably must have exercised the powers under Rule 32 with a view to remove the undue hardship. Once the Central Government have decided to relax the rules with a view to remove undue hardship, they could not have made such an arbitrary stipulation about the nonpayment of interest after maturity period, as this would defeat the very purpose and object of the rule aforementioned particularly having regard to the fact that the amount continued to be deposited with the appellants till 20.8.1991. It was next contended that the complaint was time barred. At the very outset we may notice that this point was never pressed or even mentioned during the course of arguments before the District Forum or at any stage, particularly when the determination of this question depends upon the determination of facts on the basis of evidence to be produced by the parties. At any rate, however, the complainant has made every effort to seek interest for the post-maturity period vide their letters Annexures P-l to P-3, but the Postal Authorities did not make the payment of post-maturity interest. The complainant has also filed an application for condonation of delay alongwith the complaint which is supported by an affidavit. In case, there is any delay, in our opinion, in the facts and circumstances of the case, that deserves to be condoned.

IN view of foregoing, there is no force in this appeal and the appeal is accordingly dismissed with no orders as to costs. Appeal dismissed.