Govt not liable to compensate for loss of IVPs: SC

New Delhi, Apr 8 (UNI) The Supreme Court has held that Indira Vikas Patras (IVPs) are like currency notes and in case of loss the government is not liable to compensate its holders.

A bench comprising Justice Arijit Pasayat and Justice R V Raveendran gave its judgement on an appeal by the Centre challenging a High Court verdict that had directed authorities to pay the maturity amount to Krishnaji Parvetesh Kulkarni who had lost the IVPs and lodged a police complaint.

Setting aside an impugned High Court judgement, the apex court on Wednesday ruled that an IVP was akin to an ordinary currency note and bore no name of the holder.

''Just as a lost currency note cannot be replaced, similarly the question of replacing a lost IVP does not arise. Rule 7(2) (of the IVP rules 1986) makes the position clear that a certificate lost, stolen, mutilated, defaced or destroyed beyond recognition will not be replaced by any post office. Similar is the position as regards the certificate which is either lost or stolen.'' The IVPs are easily transferable.

The court also held that since there was no challenge to rule 7(2) no direction should be given by the lower court. It was fundamental that no direction which is contrary to law can be given, the bench said.

However, making an exception in the present case, the court directed that since the respondent had already been paid, the money need not be recovered.

The government also made a statement in court that since a small amount was involved, no refund would be claimed.

UNI AKS/SC LR BD1644