Forum Orders Chief Postmaster To Pay NSC Amounts With Additional Interest
- Posted by CERC India
- Posted in Financial Services
In a complaint filed by Consumer Education and Research Society (CERS) and Nathubhai J. Bhatt, Ahmedabad, the Consumer Disputes Redressal Forum (Ahmedabad Rural) has ordered the Chief Postmaster, the Department of Post, General Post Office (GPO), to pay Nathubhai Rs. 30,225 with nine per cent interest from 1 October 2003 until the date of payment. The Forum also ordered the Chief Postmaster to pay Nathubhai Rs. 5,000 as compensation for his mental agony and towards cost.
Ref. : ER/PR-’07/GPO.9/dG
In a complaint filed by Consumer Education and Research Society (CERS) and Nathubhai J. Bhatt, Ahmedabad, the Consumer Disputes Redressal Forum (Ahmedabad Rural) has ordered the Chief Postmaster, the Department of Post, General Post Office (GPO), to pay Nathubhai Rs. 30,225 with nine per cent interest from 1 October 2003 until the date of payment. The Forum also ordered the Chief Postmaster to pay Nathubhai Rs. 5,000 as compensation for his mental agony and towards cost.
Nathubhai had subscribed to National Savings Certificates (NSCs) worth Rs. 15,000 in two installments of Rs 5,000 and Rs. 10,000 on 15 July 1997 and 7 August 1997 respectively. They were to mature on 15 September 2003 and 2 August 2003, totalling Rs. 30,225.
When Nathubhai claimed the maturity amount after six years, he was told that he would get the principal amount of Rs. 15,000 but not the interest totalling Rs. 15,225 on the grounds of alleged irregularity in the purchase of the certificates by Nathubhai as the certificates had been issued in the name of the firm instead of the individual.
Nathubhai complained to the Forum that at the time of purchase of the NSCs, he had een assured of a total sum of Rs. 30,225 with interest on maturity. But when the deposits matured, the postal department declined to repay the amount with interest on the grounds of a departmental circular which, according to Nathubhai, were unfounded. Therefore, the act of the postal department was illegal and amounted to deficiency in service.
The Forum observed that the circular based on which the postal department had eprived Nathubhai of his dues was applicable to the departmental staff and not the common investors. The National Commission too had clarified this point and added that an investor is entitled to the total amount with interest on maturity of NSCs. The Department of Post contended that the certificates had been issued in the name of Star Distributors and Nathubhai, which, as per the circular, violated 4 (2)(A) of NSC (VIII) Rules 1989.
The Forum, however, accepted Nathubhai’s argument and directed the postal department to pay him up, as directed.
The Forum comprised Mr. P. U. Rana, president, Ms Nandiniben Thakkar and Ms Jyotiben Jani, Members. Ms Nilam Mali appeared for the complainants and Mr. S. C. Shah for the defendants.
Date : 02/04/2007
Place : Ahmedabad
Pritee Shah
Senior Director – CERC
Editor INSIGHT — The Consumer Magazine
