IMPORTANT POINT
Illegality which is curable must be cured.

JUDGMENT

Jagdish Singh Khehar, J.

1. M/s. Bhagwati Vanaspati Traders, the appellant before us, is a proprietorship concern. Mr. B.K. Garg is its sole proprietor. On 28.4.1995, M/s. Bhagwati Vanaspati Traders purchased one, six years’ National Savings Certificate (hereinafter referred to as, NSC) bearing number 6NS/06DD 387742, by investing a sum of Rs.5,000/-. The above NSC was to mature on 28.4.2001. The maturity amount payable on 28.4.2001 was Rs.10,075/-.

2. Since M/s. Bhagwati Vanaspati Traders was not paid the amount due on maturity, B.K. Garg made repeated visits to the office from where the NSC was purchased. He was informed, that an NSC could only be issued in the name of an individual, and that, the NSC taken in the name of M/s. Bhagwati Vanaspati Traders, was not valid. He was also informed, that the matter had been referred for advice to the Post Master General, Bareilly, and that, the question of payment of the maturity amount would be considered only after the receipt of inputs from Bareilly. Having waited for a substantial length of time, and realizing that no further action had been taken at the hands of the respondent, B.K. Garg visited the office of the Post Master General, Bareilly. At Bareilly he was informed, that the matter had been referred to the Director General (Post), Department of Posts, New Delhi, and that, he would have to await the decision of the Director General (Post). Having waited long enough, without any fruitful result, M/s. Bhagwati Vanaspati Traders preferred Complaint Case no. 513 of 2004 before the District Consumer Disputes Redressal Forum, Meerut (hereinafter referred to as, the District Forum). The District Forum, by its order dated 1.2.2007 accepted the claim of M/s. Bhagwati Vanaspati Traders, and accordingly, directed the respondent to pay the maturity amount of Rs.10,075/-with 12% interest, from the date of maturity till the date of payment. The respondent was additionally directed to pay, a sum of Rs.5,000/-as compensation, and also cost of Rs.2,000/-, to the appellant proprietorship concern.

3. Dissatisfied with the order dated 1.2.2007, passed by the District Forum in favour of the appellant, the respondent Senior Superintendent of Post Offices, Meerut, preferred Appeal no. 460 of 2007 before the State Consumer Disputes Redressal Commission, Lucknow. The aforestated appeal was allowed by the State Commission vide its order dated 21.1.2008. The appellant concern then preferred Revision Petition no. 1456 of 2008 before the National Consumer Disputes Redressal Commission, New Delhi. The National Commission dismissed the revision petition, vide the impugned order dated 4.9.2008. The special leave to appeal preferred by the appellant, against the impugned order dated 4.9.2008, was granted by this Court on 27.7.2009.

4. A perusal of the orders passed by the State Commission, as also, the National Commission reveals, that the same were premised on the fact, that the NSC purchased by M/s. Bhagwati Vanaspati Traders, had an irregularity, inasmuch as, an NSC could only be purchased by an individual, and the same could not be issued in the name of a concern, firm, institution, banking institution or company etc. On account of the aforesaid irregularity, the respondent placed reliance on rule 17 of the Post Office Savings Bank General Rules, 1981. The above rule is being extracted hereunder:-

“17. Account opened in contravention of rules:-

Subject to the provision of rule 16, where an account is found to have been opened in contravention of any relevant rule for the time being in force and applicable to the account kept in the Post Office Savings Bank, the relevant Head Savings Bank may, at any time, cause the account to be closed and the deposits made in the account refunded to the depositor without interest.”

In addition to the above, the respondent had placed reliance on a decision rendered by this Court in Post Master, Dargamitta HPO, Nellor v. Raja Prameeelamma, (1998) 9 SCC 706, wher