UP DAKPAL L S G DAKGHAR Vs. LEELAWATI

JUDGEMENT

(1.) The Postal Department has filed this appeal aggrieved of the order dated 6.5.1999 passed in Case No.126/97 by the District Consumer Disputes Redressal Forum, Gwalior (for short the 'district Forum' ).

(2.) It is not in dispute that the deceased Somdutt Sabu opened a National Saving Scheme Account by deposit of Rs.6,000/- on 31.3.1989 and another account was opened by deposit of Rs.5,000/- on 9.3.1990. The said account was closed by the Postal Department on the ground that one account holder cannot open a second account in terms of Notification issued by the Central Government G. S. R.820 (E) dated 21.10.1992 under National Savings Scheme Rules, 1992, therefore, the amount of interest of Rs.9,898/- was not paid to him. The account holder filed the complaint before the District Forum on 18.3.1997 for deficiency in service and to claim the amount of Rs.9,898/- with interest thereon at the rate of 18% p. a. and Rs.5,000/- as compensation. The complainant died during the pendency of the complaint whose legal representatives were brought on record. The appellant resisted the complaint and submitted that the complaint is barred by time. The District Forum after appreciation of evidence held that the National Savings Scheme Rules, 1992 (for short N. S. S. Rules, 1992) came into force on the 1st day of October, 1992 which were not made retrospective in operation, therefore, the Notification-Income Tax G. S. R.820 (E) dated 21.10.1992 issued in exercise of the powers conferred by Clause (iii) of Sub-section (1) of Sec.80l of the Income Tax Act, 1961, the Central Government specifies the National Savings Scheme, contained in N. S. S. Rules, 1992 as a scheme for the purpose of Clause (iii) of Sub-section (1) of Sec.80l was not applicable. Hence, the deduction of interest which was payable at the rate of 11% p. a. up to the date of the withdrawal of the amount was illegal as Rule 14 of National Savings Scheme Rules, 1987 (for short N. S. S. Rules, 1987) provides that if an account holder opens two accounts, which is not permissible under Rule 4 in ignorance of Rule applied for closing of first account however, it does not bar payment of interest. As the account was closed on 13.12.1996, therefore, the complaint was well within limitation, hence ordered for payment of Rs.9,898/- and interest thereon at the rate of 11% p. a. in terms of the N. S. S. Rules, 1992 and 500/- as cost of the proceedings.

(3.) We have heard Mr. K. K. Jain, learned Counsel for the appellant and Mr. D. S. Chouhan, learned Counsel for the respondent and on reappraisal of evidence and the National Saving Scheme Rules, 1987 and of 1992 we are of the clear opinion that the N. S. S. Rules, 1992 came into force from the 1st day of October, 1992 so also the Notification-Income Tax obtaining a declaration were not retrospective in operation. The Notification reads thus : "g. S. R.820 (E) dated 21.10.1992-In exercise of the powers conferred by Clause (iii) of Sub-section (1) of Sec.80l of the Income-Tax Act, 1961 (43 of 1961), the Central Government hereby specifies the National Savings Scheme, contained in the National Savings Scheme Rules, 1992 as a scheme for the purpose of Clause (iii) of Sub-section (1) of Sec.80l.2. This Notification is effective from the 1st day of October, 1992.6. Forms- (1) For deposit in the N. S. S. Account through agent the form of Pay-in-Slip to be used is given at Annexure A. This form has counter-foils, one for the agent and other for the depositor. This form will be supplied by the agent which has been devised by the National Savings Organisation. For making deposit direct in the account, the form of Pay-in-Slip meant for savings account (SB-103) will be used by the depositor. (2) The agent will claim commission for the deposits made in the accounts from the Regional Director, National Savings of his area in form given at Annexure B which has been devised by the National Savings Organisation.7. Opening of N. S. S. , 1992 account-obtaining of declaration from the depositor-It has been decided that, henceforth, at the time of opening of N. S. S. , 1992 account an undertaking to the effect that the depositor has not already opened any other N. S. S. account in that financial year in any Post Office should be obtained from the depositor in the following manner and be recorded by means of a rubber stamp or in manuscript in form (SB-2) for opening the account. "have not opened any other N. S. S. , 1992 account in any Post Office in this financial year signature of depositor"