Post Master, Post Office Chuda District Surendranagar, which was opposite party before the District Forum, has filed the present revision petition.

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Undisputed facts of the case are that the complainants had purchased 5.5 years Kisan Vikas Patras in the sum of Rs.1 Lac from the petitioner.  On maturity, petitioner Post Office refused to pay the maturity amount of Rs.2 Lac on the ground that the Kisan Vikas Patras had been issued in violation of Rule-6 (revised w.e.f. 01.4.1995) of Kisan Vikas Patras, under which a cooperative society could not purchase the Kisan Vikas Patras. 

District Forum allowed the complaint and directed the petitioner to pay the maturity amount of Rs.2 Lac along with interest @ 6% p.a. from the date of maturity till the date of payment; Rs.1,000/- were awarded by way of costs.

Petitioner being aggrieved filed an appeal before the State Commission which has been dismissed by the impugned order. 

Hon’ble Supreme Court of India in “POSTMASTER, DARGAMITTA H.P.O., NELLORE VS. RAJA PRAMEEELAMMA (MS)(1998) 9 SCC 706 has held as follows:

                    “Inadvertent omission on the part of clerical staff of Post Office to correct the old rate of interest and maturity value on the NSCs which were sold after the issuance of said notification, held, did not amount to deficiency in service

                   As regards the contract, no doubt the sale of National Savings Certificates with the terms and conditions embodied thereon constitutes a contract between the Government of India as seller and the holders of the National Savings Certificates.  But as this contract was contrary to the terms notified by the Government of India and, this was due to inadvertence of the staff.  In my opinion it does not become a contract binding the Government of India being unlawful and void.  As such this is not a case of deficiency in service either in terms of the law or in terms of the contract as defined in Section 2(1)(g) of the Consumer Protection Act, 1986”.

(Emphasis  supplied)

In view of this, order passed by the foras below cannot be sustained and  are accordingly set aside.

However, keeping in view the fact that it was not only the complaints who were at fault in purchasing the Kisan Vikas Patras in pviolation of the Rules, the responsibility lays with the officials of petitioner in issuing the Kisan Vikas Patras in violation of the Rules, we had directed counsel for the respondents to seek instructions from the Ministry of Finance to pay the respondents some interest.

Counsel for the petitioner, after taking instructions, states that he has received a communication whereby the Ministry of Finance vide letter No.109-06/07-SBPG dated 12.10.09 has agreed to pay Post Office Saving Bank rate of interest on the face value of Kisan Vikas Patras. 

Earlier also, in another case we had directed counsel for the Post Office to seek instructions in which the Ministry had agreed to pay interest @ 6% p.a. on the face value of the Kisan Vikas Patras from the date of deposit till the date of payment.

Keeping in view the earlier precedent wherein Ministry of Finance had agreed to pay interest @ 6% p.a. from the date of deposit till the date of realization, we direct the petitioner to pay interest on the face value of the deposited amount @ 6% p.a. from the date of deposit till realization.

Petitioner is directed to pay the amount within 8 weeks (eight weeks) from today, failing which the petitioner would be at liberty to get the order executed under Section 25/27 of Consumer Protection Act, 1986.

With these observations, revision petition stands disposed of.