UNION OF INDIA Vs. FERTICHEM INDIA LIMITED

JUDGEMENT

(1.) This is an appeal filed by the O. Ps. against order dated 11.9.2003 passed by District Consumer Disputes Redressal Forum-I, U. T. , Chandigarh [for short hereinafter referred to as the District Forum] in Complaint Case No.243 of 2003 M/s. Feritchem (India) Ltd. and Another V/s. Union of India and Another.

(2.) Ms. Deepali Puri, Advocate appearing for the appellants submitted that the National Saving Certificates (for short hereinafter referred to as the NSCs) purchased by the respondents/complainants - M/s. Fertichem (India) Limited through its partner Sh. Sushil Kumar Singhal and Shri Sushil Kumar Singhal himself, were contrary to the rules framed by the Ministry of Communication. Department of Posts, Union of India and, as such, the NSCs could not be entertained and encashed on maturity to the respondents/complainants. She pointed out that the NSCs, which in the instant case were in the name of the respondents/complainants firm-M/s. Fertichem (India) Limited were wrongly issued by the concerned Post Office i. e. , Post Master, General Post Office, Sector 17, Chandigarh. She referred to the relevant rules, which became effective from 1.4.1995 providing that the NSCs could not be issued in the name of the firm and since the NSCs in this case were issued in the name of the firm, the Post Office was justified in refunding only the principal amount of the NSCs with simple interest admissible under the provisions of the Post Office Savings Account Rules, 1981.

(3.) The District Forum held that the NSCs worth Rs.40,500/- were issued to the respondent on 24.4.196 with maturity date of 22.4.2002 and were of 8th issue. The District Forum held that the appellant-Post Master, General Post Office, Sector 17, Chandigarh was expected to know the relevant rules, which became effective from 1.4.1995 and should not have issued the NSCs but they ignored the rules and issued the NSCs, which act amounted to deficiency in service. The District Forum held the respondents/complaints entitled to the maturity amount of the NSCs. The complaint was allowed and the appellants were directed to pay to the complainants the maturity amount of the NSCs to the tune of Rs.81,607/-. Interest also awarded @ 7% per annum w. e. f.24.4.2002 till is payment.