WHEN  DEPOSIT MADE BY A CONSUMER IS TERMED AS AN  IRREGULAR DEPOSIT-

IS HE DEPRIVED OF INTEREST  

 

Can the department take advantage of their own wrong –was the question before the Honorable National Commission in the matter of Kissan Sahkari Chinni Mill Ltd Employees Provident fund Trust and anothers  Versus Post Master General ,Bareily Division and others which has been recently decided on 18th of April 2011,the original petition no. 322 of 2000.Contention of the consumers was that they cannot be deprived of interest on their money even if the deposit was later on found not in accordance with the Post office Rules .It was argued that the post was equally responsible for such irregular deposit and should have checked at the time when deposit was being made .Consumer is a lay man and it is expected from the department to take care of compliance of the rules while doing their duty.

The facts in brief leading to the dispute are admitted by both the parties.Complaint had been filed by Chairman ,Kissan Sahkari Chini Mill Ltd Employee provident fund trust ,Shahajanpur on behalf of 626 employees working under him.As per the provident fund act,deductions were made from the salaries of the employees towards provident fund which are required to be deposited with the commissioner of provident fund or it can also be depositd with the provident fund trust formed for the welfare of the employees for convenience .The employees agreed to form provident fund trust and trust invested the amount of provident fund in term deposit account of the post office .The total amount so invested was to the tune of Rs 1,40,85,000/-for a period of five years .At the time of maturity department held it as an irregular investment with a  plea that a trust cannot make  investment under post office scheme ,it is meant for individuals only.Hence no interest can be paid on an irregular deposits.

Complainant contested the case stating therein that the deposit so made was personal specie and provident fund was only a custodian for the employees ,hence not irregular investment. More so, Sub Post Master concerned had accepted the deposit and is very much party to the consent of such deal .After expiry of the term ,now cannot refuse to pay interst on such huge amount which comes to Rs 95.25lacs

Deposit has  not been denied by the post office.Mistake by the post office is apparent on face of it and post office is party to such mistake Complainant not only asks for interest but also claims for compesation for an amount of rs 1 lac and also cost of litigation Rs 1 lac

National commission while discussing on the whole affair referred to number of earlier decided cases on the subject when Apex court ,Supreme court had held that in case of irregular deposits , nominal interest must be paid for the reasons , money had been kept with the post office irrespective of the fact who was at fault .Not only that post office is equally responsible for such mistakes and they cannot take advantage of their wrong .In number of such cases kisan vikas patra were issued in the name of HUF [Hindu Undivided Family ] which were not permitted as per post office  rules .Objections were taken by the finance ministry at the time of maturity ,the same were brought to the notice of consumer forums where number of such cases were pending for adjudication .During the pendency of the cases finance Ministry gave special approvals for interest in such matters.

In the present case admittedly the deposits were made by the complainant after forming a trust and deductions from the salary of employees were made.Similar cases pertaining to National saving certificate ,kisan vikas patra and post office monthly income scheme were dealt with by this national commission  The full bench of the commission in the matter of :

The Chief Post Master General ,Maharashtra and others V Sweeto Harendra Mehta R.P.NO.2006OF 2009,

The chief post master Chennai and others V M/S SUN BEAM COURIER PVT LTD R.P.NO 3390of 2008

Shri Gurudatta zilha parishad employee co-operative Pratishthan Ltd V/S Sub Post Master post office Pranda R.P.NO.681 OF 2007

Natonal commission held :

“Keeping in view the fact that it was not only the complainants who were at fault in purchasing the kisan vikas patra in violation of the Rules ,the responsibility lays with the officials of the post office in issuing the same .We haddirected the councel of post officeto obtain instruction from the ministry of finance for some interest to be paid

In all above cases finance ministry had given approval for paymenyt  of interest @ 6% per annum

National commission held in the present matter also that the same principle ,which had been applied in cases of NSS and Kisan vikas patra,post office monthly schemes ,has to be applied in the matter of provident fund trust account in the case under consideration .Therefor it was directed that OP shal pay interest @6%per annum on the deposited amount from the date of deposit till the date of payment Complaint was also granted an amount of Rs 25,000/- towards cost of litigation

 

Author: Dr Prem Lata

 

Member,Consumer Forum ,Delhi [NW]

 

 

 

 

 

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