IMPORTANT POINT
Interest is not a penalty or punishment at all, but it is the normal accretion on capital.

ORDER

This revision petition has been filed by Sahkari Ganna Vikas Samiti against the order dated 24.08.2016 of the State Consumer Disputes Redressal commission, Uttar Pradesh, (in short ‘the State Commission’) passed in Appeal No.1890 of 2010.

2. Brief facts of the case are that the petitioner purchased Kisan Vikas Patra and National Saving Certificates for Rs.4,63,500/-. After the maturity of the instruments, it was informed that maturity amount cannot be given to the petitioner/complainant quoting circular No.61/111/95 S.V. dated 9.3.1995 of the Postal department, wherein the purchase of Kisan Vikas Patra by institutions has been banned. The complainant filed a consumer complaint bearing No.219/2007 before the District Consumer Disputes Redressal Forum, Gonda, (in short ‘the District Forum’) and the District Forum vide its order dated 01.09.2010 ordered the opposite party to pay maturity amount. Aggrieved by the order dated 01.09.2010 of the District Forum, the respondents/opposite parties preferred appeal before the State Commission and the State Commission vide its order date 24.8.2016 allowed the appeal and dismissed the complaint.

3. Hence the present revision petition.

4. Heard both the learned counsel for the parties and examined the record. The learned counsel for the petitioner stated that when the amount was deposited, there was no such information given to the petitioner by the employees of the opposite party department. Moreover, even during the currency of these instruments, no intimation was sent to the complainant that they would not be entitled to any interest on these deposits. When the petitioner approached the opposite parties for getting the maturity amount then it was informed that institutions cannot purchase Kisan Vikas Patras and therefore, no interest was liable to be paid.

5. It was argued by the learned counsel for the petitioner that the opposite party is relying on the judgment of the Hon’ble Supreme Court in Civil appeal No.4995 of 2006 titled Arulmighu Dhandayudhapaniswamy Vs. Director General of Post Offices, Department of Post & Ors. III (2011) CPJ 25 (SC), but in that case the amount was returned within six months of deposit and the notice was given to the depositor institution within a period of seven months, whereas in the present case, no notice has been given to the complainant by the opposite party department and the money deposited remained with them till maturity of these instruments. Thus, the case referred to by the opposite party on Arulmighu Dhandayudha-paniswamy Vs. Director General of Post Offices, Department of Post & Ors. (supra) is not applicable in the present case. The learned counsel argued that as the amount remained with the opposite party, the complainant is entitled to get the maturity value of the instruments.

6. To support his arguments learned counsel for the petitioner referred to the case of Superintendent of Post Offices Vs. Town Area Committee, IV (2006) CPJ 25 (NC), wherein following has been observed:-

“Compensation for failure to discharge obligation resembling those created by contract when an obligation resembling those created by contract has been incurred and has not been discharged, any person injured by the failure to discharge it is entitled to receive the same compensation from the party in default, as if such person had contracted to discharge it and had broken his contract.”

7. On the other hand learned counsel for the respondent has stated that by notification dated 9.3.1995 all the institutions are debarred from purchasing the Kisan Vikas Patra or National Savings Certificate. In the light of this circular, the petitioner cannot claim any interest on the deposited amount. Learned counsel argued that even the Hon’ble Supreme Court in Arulmighu Dhandayudhapaniswamy Vs. Director General of Post Offices, Department of Post & Ors. (supra), has held the following:-

“Post Office Saving Bank General Rules, 1981- Rules 16, 17- Consumer Protection Act, 1986- Sec