L I C OF INDIA Vs. PHULMANI

JUDGEMENT

(1.) The Chief Executive, LIC Mutual Fund has filed this appeal challenging the validity of the order dated 21.4.1997 passed by the Sundargarh-II Rourkela District Forum directing him to pay to the respondent Nos. 1 and 2 the redemption proceeds at the net asset value calculated as on 31.5.1996 with interest at the rate of 14 per cent per annum from 1.6.1996 and to release the face value of 9 unpaid cheques together with interest at the rate of 14 per cent per annum from 1.10.1995 together with costs of Rupees 300.

(2.) The respondent No. 1 is the widow of late Charan Tirkey and respondent No. 2 is their daughter. They filed the complaint alleging deficiency in service. Their case was that Charan Tirkey purchased 10,000 units of "Dhanavarsha (2) Scheme" on payment of Rupees 1,00,000. The appellant allotted him a certificate bearing No. G112240. He had opted for monthly income terms. Before maturity of the certificate in May, 1996, he died on 24.9.1995 leaving behind with him 9 numbers post-dated cheques for encashment. The respondent Nos. 1 and 2 being the legal heirs as well as nominees of the deceased Charan Tirkey intimated about his death and asked for payment of the surrender value of the certificate. The appellant declined to accede to their request on the plea that after closure of the scheme the proceeds were rolled over to "Dhanavarsha (2) Roll Over Scheme" in the name of deceased Charan Tirkey.

(3.) The procedure with regard to redemption of "Dhanavarsha (2) Scheme" is on record. It is dated 15.4.1996. It was marked as Exhibit- 1 in the District Forum. Under it, offer was made to all the unit holders either for full redemption or for complete roll over. In case of full redemption the unit holder was given option for receiving the redemption proceeds in full at the net asset value calculated as on 31.5.1996. With regard to complete roll over the unit holder was given option for continuing in the scheme for a further period of 5 years from 1.6.1996.