UNION OF INDIA Vs. ARUN BORSE

JUDGEMENT

(1.) THE complainant, Arun Borse, paid a sum of Rs.25,000/- for purchasing Kissan Vikas Patras (KVPs) to the agent appointed by the State of M.P. through the District Collector, Gwalior under Small Savings Scheme. The said amount was paid by the complainant out of the GPF and Gratuity received by his father, who was a Government employee. Xerox copies of five receipts of this transaction are produced on record. There is no dispute with regard to the genuineness of the said receipts. The receipts are issued on behalf of the Govt. of India from the Authorised Agent"s Receipt Book of National Savings Organisation with a specific endorsement that the receipt was issued by the agent/person authorized to issue the receipt. As the KVPs were not received, the complainant approached the District Forum, Gwalior, by filing Case No.1295/1993. Before the District Forum, the Superintendent of Post Offices submitted that the agent has played fraud on depositors and immediate measures were taken by informing the Superintendent of Police and investigation is also being conducted by the police. After considering the aforesaid fact, the District Forum arrived at the conclusion that the dispute is not covered by the Consumer Protection Act, 1986, as there is no deficiency in service and, therefore, the complainant ought to have filed a Civil Suit. Against that order, the complainant preferred Appeal No.415/1996 before the State Consumer Disputes Redressal Commission, Madhya Pradesh. By its judgement and order dated 4.9.1998, the State Commission allowed the Appeal and directed the respondents to refund the amount of Rs.25,000/- with interest at the rate of 18% p.a. from 31.10.1992 with the direction to pay Rs.100/- as costs and Rs.250/- as advocate"s fee. Against that order this Revision Petition is filed. Learned counsel appearing on behalf of the petitioner, Union of India, submitted that the order passed by the State Commission against the petitioner, cannot be justified because the agents are appointed by the Collector of the concerned State Government. If the agent commits fraud, only the State Government would be responsible and not the Union of India because Union of India has not received the amount from the complainant. For this purpose, reference is made to the circulars issued by the Central Government as per the Standardized Agency System. The relevant portions are as under: "Standardised Agency System " Issue of receipt books to agents":