New Delhi, Sept. 20: The Supreme Court today held Unit Trust of India accountable for its cheques, sent by registered post, failing to reach customers.

It ordered the mutual fund to pay the due amount of Rs 3.35 crore to 1,600 unit holders.

The apex court said UTI could not blame the postal department for the “non-delivery of cheques of maturity amount”. It cited contract law to rule that the principal (UTI in this case) is responsible for an act of omission by the agent (postal department).

The 1,600 unit holders had complained they had not received their cheques on maturity. FIRs were lodged and during the investigation, it was found that the cheques had been intercepted and encashed by frauds who had opened new accounts in banks and post offices in the name of the unit holders.

The unit holders filed complaints with district consumer forums, which held that UTI was bound to pay the customers the due amount. On appeal by UTI, the National Consumer Disputes Redressal Commission upheld the district forums’ orders.

UTI then appealed to the Supreme Court, which said the mutual fund had an “obligation” to pay the customers and rejected its contention that there was “no deficiency of service or negligence” on its part.