Unit Trust of India vs MAHENDRA PAL SINGH

THIS appeal has been filed against the judgment and order dated 28.5.1999 passed by District Consumer Forum-II, Lucknow in Complaint Case No. 709/1998.

THE facts of the case stated in brief are that in 1992 the complainant purchased units from Unit Trust of India on which he was to get a sum of Rs. 21,200/- on 1.11.1997. By letter dated 21.11.1997 the complainant asked Unit Trust of India to send the amount. By letter dated 6.3.1998 Unit Trust of India informed the complainant that the complainant has been sent Rs. 10,000/- each of two cheques while the third cheque of Rs. 1,200/- was sent by cheque dated 29.10.1997. All these cheques have been sent by registered post. It was also informed that they have been encashed on 15.12.1997 and 19.12.1997. THE complainant had to file the present complaint for realisation of payment. The opposite party in the written version stated that one of the cheques has been got encashed in Centurion Bank Limited, Connaught Circus, New Delhi and the rest cheques have been got encashed from Indusind Bank Limited, Barakhamba Road, Connaught Place, New Delhi. Hence it is not liable to pay any amount.

The learned District Forum decided the matter in favour of the complainant and ordered for payment of Rs. 21,200/- alongwith interest at the rate of 18% per annum with effect from 1.11.1997. It also awarded a sum of Rs. 1,000/- as compensation and the same amount as cost of proceedings. If the amount was not paid in three months'' time, then the interest payable shall be at the rate of 24% per annum.

AGGRIEVED against this order of the learned District Forum, Unit Trust of India has come in appeal and has challenged the correctness of the order of the learned District Forum. We have heard the learned Counsel for the parties.

LEARNED Counsel for the appellant has argued that the appellant is prepared to pay the amount. LEARNED Counsel for the opposite party has argued that Unit Trust of India has sent a letter to the complainant of its willingness to pay the amount. Keeping in view these facts, it is clear that the money which was sent by registered post is to be paid by the Unit Trust of India to the complainant. It has been argued by the learned Counsel for the appellant that appellant is not liable to pay interest on the amount. Learned Counsel for the complainant has argued that there is no fault of the complainant. Hence the interest should be paid by the Unit Trust of India. It has been ordered by the learned District Forum that the amount should be paid to the complainant. It was the duty of the Unit Trust of India to have paid the amount to the complainant. We find that the complainant belongs to the city of Lucknow. The Unit Trust of India could have got the cheque delivered at Lucknow when the complainant resides there where the office of Unit Trust of India is situated, but Unit Trust of India choose to send the cheque by registered post. The Post Office is the agent of the sender and not of the addressee. Unless a letter is received or proved to have been delivered to a person it cannot be said that the sender is absolved of its liability merely by posting a letter under registered cover. Therefore, the complainant is entitled to get interest also as awarded by the learned District Forum at the rate of 18% per annum. This plea is rejected. Thus in view of the above facts, the judgment and order of the learned District Forum are to be confirmed except that the interest at the rate of 2% per month. However, the interest at the rate of 18% per annum shall be payable as ordered by the learned District Forum.

THE penal interest cannot be allowed in the circumstances of this case and the interest already allowed at the rate of 18% per annum shall be payable by the appellant from 1.11.1997 till the date of payment. Order

THE appeal is dismissed and the judgment and order of the learned District Forum are confirmed except that the interest payable would be at the rate of 18% per annum. THE rate of interest awarded at the rate of 24% per annum in case of default is reduced to 18% per annum. Let the compliance of this order be made within two months from the date of this order.

Let copy of this order be made available to the parties as per rules. Appeal dismissed.