Union of India vs K.D.VASUDEVA

FEELING aggrieved against order dated 1.4.2003 passed by District Consumer Disputes Redressal Forum-I (for short hereinafter referred to as the District Forum) in Complaint Case No. 512 of 2001, the O.Ps. of the complaint case, namely Union of India through the Senior Superintendent of Post Office and Sub-Post Master, Sector 20, Chandigarh have filed this appeal.

THE complaint was filed by Shri K.D. Vasudeva, IAS (Retd.), resident of Kothi No. 89, Sector 10-A, Chandigarh claiming interest for the post maturity period of the National Saving Certificates (for short hereinafter referred to as NSCs), five in number each of denomination of Rs. 10,000/- dated 6.5.1995 (Copy Annexures C-1 to C-5). THE maturity value of each certificate was Rs. 10,150/- which matured for payment on 6.5.2001. After the date of maturity, the complainant applied for encashment of the NSCs when the appellants/OPs required him to send photocopies of the certificates and copy of the income tax certificate, which were furnished to the Post Master, Sector 20, Chandigarh vide letter dated 16.5.2001. However, the payment of the aforesaid NSCs was not made and instead a letter was sent wherein the complainant was informed that the NSCs were issued in contravention of the rules and willingness of the complainant was sought about the payment of the amount of the NSCs with interest at the savings bank rate. THE complainant, however, did not accept the said offer and claimed the entire amount of maturity with interest @ 18% per annum from the date of maturity. It appears that during the pendency of the complaint, the irregularity regarding the issuance of the NSCs was condoned by the Competent Authority and the maturity value of the five NSCs was paid vide cheque dated 25.9.2002 for a sum of Rs. 1,00,750/-. THE controversy, however, remained regarding the interest to be paid on the amount for the period w.e.f. the date of maturity and the date of actual payment. The District Forum held that the interest for the aforesaid period was payable @ 6% per annum which was allowed for the period from 6.5.2001 to 25.9.2002 and a sum of Rs. 500/- was also awarded as costs.

Mr. G.C. Babbar, Advocate, learned Counsel for the appellants contended that the interest for the post-maturity period was not legally maintainable and he placed reliance on the judgment of the State Consumer Disputes Redressal Commission, Madhya Pradesh in the case of Post Master General, Post Office, Indore v. Ramesh Chandra Goel, Appeal No. 208 of 2001 decided on 10.10.2001, which has been referred to in the judgment of Post Master v. Shree Chand Udharam, I (2003) CPJ 631, of Madhya Pradesh State Consumer Disputes Redressal Commission, Bhopal. The State Commission of Madhya Pradesh in the case of Post Master v. Shree Chand Udharam (supra) while referring to the judgment of the Hon''ble National Consumer Disputes Redressal Commission, New Delhi (for short hereinafter referred to as the National Commission) in the case of The Sultanpur Kshetriya Gramin Bank, Indu Video Films (P) Ltd. v. The Chief Post Master & Anr., I (1994) CPJ 201 (NC); Department of Post and Telegraphs v. Dr. R.C. Saxena, I (1998) CPJ 107 (NC), and the judgment of Uttar Pradesh State Consumer Commission in the case of CIII (2000) CPJ 318, held that "Issuing Post Office which is also the appellant in the present case has paid the maturity amount to several other holders of such irregular certificates, hence, in view of the decisions of the National Commission, the order of payment of maturity amount does not call for any interference. However, after the date of maturity, the award of interest at the rate of 12 per cent per annum as compensation was reduced in view of the decision in Nagar Palika Parishad, Mandla v. Union of India (supra), and an order was made to pay simple interest on the maturity amount at the rate of 6 per cent per annum".

RESULTANTLY, the interest was reduced at the rate of 6% per annum from the date of maturity till payment. The question of the Post Office paying maturity value of the NSCs issued contrary to rules and later on condoning the irregularity is not in dispute. The dispute is regarding the permissibility of the award of interest during the period of post-maturity till payment. The judgment of the Madhya Pradesh State Consumer Disputes Redressal Commission, Bhopal in the case of Post Master v. Shree Chand Udharam (supra), has settled this controversy. The District Forum has followed the said authority and awarded interest at the rate of 6% per annum for the period from 6.5.2001 to 25.9.2002. There is no merit in this appeal. The District Forum has rightly awarded interest after the maturity period till payment. The appeal is dismissed. There shall be no order regarding the costs of appeal. Copies of this judgment be sent to the parties free of charges. Appeal dismissed.