UNION OF INDIA Vs. K D VASUDEVA

JUDGEMENT

(1.) 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.

(2.) 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.

(3.) 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.