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Judgment
THIS is an appeal against the judgment and order dated 4.9.1998 passed by District Consumer Forum, Muzaffarnagar in Complaint Case No. 321 of 1997.
THE facts of the case stated in brief are that the complainant took one National Savings Certificate (NSC) on 30.3.1991 for a period of six years for Rs. 10,000/-. THE opposite party refused to pay the amount of the NSC on its maturity. By letter dated 27.4.1997 the complainant has prayed for a sum of Rs. 20,150/- with 18% interest, a sum of Rs. 2,750/- on account of cost, fees to the Advocate and a sum of Rs. 10,000/- as compensation. The opposite party was served in the District Forum but no written statement was filed.
The learned District Forum, after considering the facts of the case decreed the complaint and ordered for payment of Rs. 20,150/- alongwith interest at the rate of 12% from 1.4.1997 till the date of payment as well as cost of Rs. 500/-.
AGGRIEVED against this order, the appellant has come in appeal and has challenged the correctness of the order of the learned District Forum. Without issuing notice to the opposite party the appellant has been heard on merits.
LEARNED Counsel for the appellant has argued that the National Savings Certificate can be issued only in the name of individual or joint names and it cannot be issued in the name of Hindu Undivided Family. A reliance has been placed on Rule 6 of the Important General Orders of the Post Office relating to encashment of certificates. Rule 6 provides that the NSCs in the name of members of Hindu Undivided Family cannot be issued but the Karta of Hindu Undivided Family can purchase NSCs in his own name by adding the name of one of his co-parceners. Such a co-parcener should be an adult. It also provides that he cannot purchase the certificates on behalf of the Hindu Undivided Family so as to bind his co-parceners whose names are not stated as joint holders in the certificates. In this connection we may refer to the case of Deptt. of Post and Telegraphs v. Dr. R.C. Saxena, I (1998) CPJ 107 (NC)=(1997) 5 CTJ 284. The National Commission had an occasion to consider the rules framed under National Savings Scheme. In that case two accounts of NSC were opened but later on when it came to the knowledge of the Postal Authorities that there were two accounts of the NSC Scheme, the complainant applied for closure of one account and for withdrawing the principal amount with interest. The Post Office, according to the Post Office Rules, refused to make payment of the interest. In that case it was held that the opening of an NSS account is merely an irregularity not amounting to a contravention within the meaning of Rule 17 of the Post Office Savings Bank General Rules, 1981. Thus the National Commission allowed interest on the 2nd account also even if it was opened in contravenssion of the rules. It was further held that the rule was made only for administrative convenience of the Department and was not to bar the payment of the interest of an account opened by a depositor in ignorance of the rule.
AT the time of purchase of National Savings Certificate it was the duty of the issuing Post Office to see that the NSCs are not issued in the name of Hindu Undivided Family but according to Rule 6 of the Post Office Rules. Thus the complainant cannot be blamed or penalised for no fault of his. The fault lies with the issuing Post Office.
THUS we find that the order passed by the learned District Forum concerned was perfectly correct on the basis of facts on record and require no interference. The appeal is, therefore, liable to be dismissed. Order The appeal is dismissed and the judgment and order of the learned District Forum is upheld. No order as to the cost. Let compliance of this order be made within a period of two months from the date of this order. Let copy of this order be made available to the parties as per rules. Appeal dismissed.