Citation : 2024 Latest Caselaw 2287 Tel
Judgement Date : 19 June, 2024
THE HON'BLE THE CHIEF JUSTICE ALOK ARADHE
AND
THE HON'BLE SHRI JUSTICE ANIL KUMAR JUKANTI
WRIT PETITION No.8739 OF 2009
ORDER:
(Per Hon'ble Shri Justice Anil Kumar Jukanti)
None appears.
2. This writ petition is filed seeking the following relief:
"...to issue a writ order or direction and more particularly one in the nature of Writ of Certiorari call for the records pertaining to the order dated 02.02.2009 in Permanent Lok Adalat Case No.4555 of 2008 passed by the 2nd respondent and to quash the same is illegal, arbitrary and against the National Savings Certificate Rules and pass and pass such other order or orders as this Hon'ble court may deem fit and proper in the circumstances of the case."
3. Brief facts of the case:
Respondent No.1 purchased 6 year National Saving
Certificates (for short 'NSCs') with serial No.928976-928985
(ten certificates value of Rs.10,000/- each) on 15.07.2000
and certificate serial No.30E 495690 to 30E 495699 (ten
certificates value of Rs.10,000/- each) on 12.10.2000 by
investing Rs.2,00,000/- through her father who was a
CJ & JAK,J
registered G.P.A. Holder for her by virtue of registered G.P.A.
dated 28.07.1982.
3.1. Respondent No.1 visited petitioners' office on
02.03.2007 for surrendering the NSCs to receive the
matured amount, respondent was asked to produce the
proof of identity, when she produced her passport issued by
the USA Government, she was informed that NRI is not
entitled to invest the amount in NSC and was further
informed that Rule 4(3) of NSC (VIII-Issue) Rules, 1989
prohibits NRI to purchase and that she was holding the
certificates in violation of NSC Rules.
3.2. Respondent No.1 approached Permanent Lok Adalat,
Permanent Lok Adalat exercising its jurisdiction under
Section 22-A (b) (ii) of the Legal Services Authorities Act,
1987 (for short 'the Act, 1987') considered the application of
respondent No.1 and as envisaged under Section 22-C of the
Act, 1987, conducted conciliation proceedings. As the
parties failed to reach an agreement, Permanent Lok Adalat
CJ & JAK,J
decided the dispute as per Section 22-C (8) of the Act, 1987.
Writ petition is filed challenging the order of Permanent
Lok Adalat.
4. It is averred in the writ affidavit filed in support of the
writ petition that Permanent Lok Adalat lacked jurisdiction
to decide the dispute on merits as the dispute involved
pertains to finding of facts and a trial should be conducted.
Reliance is placed on the Apex Court's judgment in State of
Punjab and another v. Jalour Singh and others 1, for the
proposition that Permanent Lok Adalat had no jurisdiction
to decide the dispute akin to a Court. It is further averred
that respondent No.1 was a Non Resident Indian (NRI) and
never disclosed the fact in her application or in the G.P.A.
while purchasing the certificates. It is also stated that the
said dispute is to be decided by Consumer Forum, under
Consumer Protection Act, 1986, as the issue is with regard
to deficiency of service. Other ground pleaded is
1 (2008) 2 SCC 660
CJ & JAK,J
that respondent No.1 cannot hold the NSCs and same is
against the rules and prayed to suspend the operation and
to set aside the order dated 02.02.2009 in P.L.A.C.No.4555
of 2008.
5. We have perused the record. It is not in dispute that
respondent No.1 has purchased NSCs 20 in number (each
denomination value of Rs.10,000/-) and the said NSC
matured on 28.07.2006 and 17.10.2006. It is also not in
dispute that the said certificates were purchased by the
G.P.A. holder for respondent No.1.
6. Section 22-A (b) of the Act, 1987, defines "public utility
service". Section 22-A (b) (ii) of the Act, 1987 defines public
utility service means, "postal, telegraph and telephone
service". By virtue of Section 22-A (b) (ii) of the Act, 1987,
read with 22-B an application made by a party before
Permanent Lok Adalat for settlement of dispute with respect
to postal, telegraph and telephone service can be taken up
CJ & JAK,J
by Permanent Lok Adalat as jurisdiction is conferred by
virtue of Section 22-B of the Act, 1987 which is as follows:
"22B. Establishment of Permanent Lok Adalats.--(1) Notwithstanding anything contained in section19, the Central Authority or, as the case may be, every State Authority shall, by notification, establish Permanent Lok Adalats at such places and for exercising such jurisdiction in respect of one or more public utility services and for such areas as may be specified in the notification.
(2) Every Permanent Lok Adalat established for an area notified under sub-section (1) shall consist of--
(a) a person who is, or has been, a district judge or additional district judge or has held judicial office higher in rank than that of a district judge, shall be the Chairman of the Permanent Lok Adalat; and
(b) two other persons having adequate experience in public utility service to be nominated by the Central Government or, as the case may be, the State Government on the recommendation of the Central Authority or, as the case may be, the State Authority, appointed by the Central Authority or, as the case may be, the State Authority, establishing such Permanent Lok Adalat and the other terms and conditions of the appointment of the Chairman and other persons referred to in clause (b) shall be such as may be prescribed by the Central Government."
The contention that Permanent Lok Adalat lacks jurisdiction
cannot be sustained.
CJ & JAK,J
7. Permanent Lok Adalat conducted conciliation
proceedings. It is recorded in the order that, in conciliation
proceedings writ petitioners filed written statement and were
seeking adjournments from time to time on the ground of
approval for regularization of transactions from Director
General, Department of Posts, New Delhi, for payment to the
respondent No.1. As parties failed to reach an agreement by
subjecting themselves for conciliation proceedings as per the
Act, 1987 Permanent Lok Adalat decided the matter on
merits. We do not find any infirmity in the finding of
Permanent Lok Adalat that there was no mention with
regard to the non-eligibility of NRIs to purchase NSCs and
also with the observation that the postal authorities have
not verified the application thoroughly and issued National
Savings Certificates. It is borne by record that petitioners
herein sought regularization of the transaction with the
Director General, Department of Posts, New Delhi. We are
in agreement with the observation of the Permanent Lok
Adalat that for the mistake of petitioner's, respondent
CJ & JAK,J
should not suffer. Permanent Lok Adalat after assigning
cogent reasons in its order, dated 02.02.2009, partly allowed
the matter and held as follows:
"For the foregoing reasons, we partly allow
to pay the maturity amount and interest on matured amount as applicable on Time Deposits in Post Offices for 5 years and above till the date of realization on National Savings Certificates bearing Nos. 25EE 928976 to 25EE 928985 and 30EE 495690 to 30EE 495699 to the Petitioner, failing which Respondents shall pay same interest on decreetal amount from date of award till date of payment and the petitioner will be at liberty to file an Execution Petition for its recovery only after one month from date of Award. The decreetal amount to be credited to Petitioner's Bank account under intimation to this Adalat and the Petitioner or GPA Holder required to furnish Petitioner's Bank Account number to the Respondents within one month from date of award."
8. In State of Punjab (supra), the Apex Court held as
follows:
"12. It is true that where an award is made by Lok Adalat in terms of a settlement arrived at between the parties, (which is duly signed by parties and annexed to the award of the Lok Adalat), it becomes final and binding on the parties to the settlement and becomes executable as if it is a decree of a civil court, and no appeal lies against it to any court. If any party wants to challenge such an award based
CJ & JAK,J
on settlement, it can be done only by filing a petition under Article 226 and/or Article 227 of the Constitution, that too on very limited grounds. But where no compromise or settlement is signed by the parties and the order of the Lok Adalat does not refer to any settlement, but directs the respondent to either make payment if it agrees to the order, or approach the High Court for disposal of appeal on merits, if it does not agree, is not an award of the Lok Adalat. The question of challenging such an order in a petition under Article 227 does not arise. As already noticed, in such a situation, the High Court ought to have heard and disposed of the appeal on merits."
Reliance placed on the Apex Court judgment is not
applicable to the facts of the case, in the present case the
award is passed by Permanent Lok Adalat and not under
Section 21 of the Act, 1987. As per Section 22 (c) (8) of the
Act, 1987, Permanent Lok Adalat can decide the dispute and
the provision is as follows:
"22(c)(8): Where the parties fail to reach at an agreement under sub-section (7), the Permanent Lok Adalat shall, if the dispute does not relate to any offence, decide the dispute."
9. Petitioners misconceived the order/award passed by
the Permanent Lok Adalat to that of an award passed by Lok
Adalat under Section 21 of the Act, 1987. Permanent Lok
CJ & JAK,J
Adalat exercises its jurisdiction by virtue of Section 22-B of
the Act, 1987. An award passed under Section 21 of the
Act, 1987 is different to that of the award passed exercising
jurisdiction under Section 22 (c) (8) of the Act, 1987.
10. For the aforesaid reasons, we do not find any merit in
the writ petition and is liable to be dismissed and is
dismissed. No costs.
Miscellaneous applications, pending, if any, shall
stand closed.
________________________ ALOK ARADHE, CJ
____________________________ ANIL KUMAR JUKANTI, J Date:19.06.2024 PLP
Publish Your Article
Campus Ambassador
Media Partner
Campus Buzz
LatestLaws.com presents: Lexidem Offline Internship Program, 2026
LatestLaws.com presents 'Lexidem Online Internship, 2026', Apply Now!