NOVA INDUSTRIES PRIVATE LIMITED Vs. GENERAL POST OFFICE

JUDGEMENT

(1.) This is an appeal filed against order dated 3.11.2003 passed by the District Consumer Disputes Redressal Forum-II, U. T. , Chandigarh (for short hereinafter referred to as the District Forum) in Complaint Case No.1207 of 2001. The District Forum partly allowed the complaint and awarded a sum of Rs.5,000/- as compensation along with Rs.1,000/- as costs of litigation.

(2.) The appellant invested a sum of Rs.5,000/- in National Saving Certificates (for short hereinafter referred to as NSCs) and obtained six NSCs from the General Post Office, Sector 17, Chandigarh. The NSCs are dated 26.10.1995. Certificates bearing Sr. No.07ee261754 to 07ee261758 are of the value of Rs.10,000/- each while Certificate bearing No.07dd511219 is for a sum of Rs.5,000/-. The maturity value of the NSCs of Rs.10,000/- was Rs.20,150/- whereas the maturity value of the NSCs of Rs.5,000/- was Rs.10,075/-. These certificates were to mature on 26.10.2001 i. e. after a lapse of six years from the date of issue, which is 26.10.1995. The appellant presented these NSCs on their being matured at the General Post Office, Sector 17, Chandigarh and prayed for the payment of the amount of maturity. The Post Office, however, found that the NSCs were issued regularly in contravention of rules and as such, no interest was admissible on the NSCs. The appellant was entitled to simple interest on the face value of the certificates at the same rate as admissible for the time being in force of the type of saving Bank account which such holder was entitled to open under the provisions of the Post Office Saving Account Rules or interest as applicable to the Saving Bank Account.

(3.) Reference was made to the relevant rule in Para 4 of the reply wherein the NSCs 8th Issue could be issued in favour of individuals and trusts only w. e. f.1.4.1995. It had been decided to discontinue the issue of these NSCs to institutions w. e. f. the said cut-off date i. e. , 1.4.1995. Reference was also made to the Director General, Posts letter No.61-11-95-SP dated 9.3.1995 which prescribed the procedure for regularization of irregular issue of NSCs, which provided, inter alia that as soon as irregular issue of NSCs (IV or V) and (VI or VII, Issue) is detected, the holder should at once be made aware of the consequence in terms of Rule 10 of National Savings Certificates (IV-Issue) Rules, 1970, National Savings Certificates (VI Issue) Rules, 1978 and National Savings Certificates (VII-Issue) Rules, 1981. The holder should also be apprised of the alternative of encashment of irregularly issued NSCs with face value of the certificates at the same rate as admissible for the time being under the provisions of the Post Office Savings Account Rules, 1981.