A C Ohri vs DELHI DEVELOPMENT AUTHORITY

THIS appeal has been filed by the complainant against the order of District Forum No. 1 dated 19th May, 1993 by which the claim of the complainant was dismissed.

BRIEFLY the facts of the case are that the complainant got himself registered under Sixth Self Financing Scheme for Category III flats in 1985 and deposited an amount of Rs. 15,000/ - as registration charges, on 17th July, 1989. The respondent invited applications from the registrants of earlier scheme for making allotment of flats in Trilokpuri/Mayur Vihar. The complainant submitted an application for allotment of the flat in that scheme and he was allotted Flat No. 533, Category -III, Trilokpuri/Mayur Vihar vide allotment letter dated 27th September, 1989. The cost of the flat given in the letter was Rs. 2,90,600/ -. After giving the credit of Rs. 15,000/ - and adding documentation charges etc. he was required to pay Rs. 2,76,112/ -. It was further stated in the letter that as he had been allotted a flat out of the earlier release he was liable to pay interest on the amount of instalments in addition to the said price, @ 10% p.a. from the respective due dates, to the actual date of payment as detailed below: - Instalment Amount Due Date First Rs. 74,575/ - 10.7:1986 Second Rs. 59,660/ - 31.8.1986 Third Rs. 74,575/ - 30.11.1986 Fourth Rs. 59,660/ - 28.2.1987

It is pleaded by the complainant that the respondent pressurised him to pay Rs. 74,831.80 towards interest and consequently, he paid the same. He has prayed that the respondent be directed to refund the said amount of Rs. 74,831.80. The complainant further pleaded that he has been given interest on the deposits till 31st March, 1989 and he was entitled to the same upto the date of letter of possession which is 30th November, 1989. He was further stated that he is entitled to interest on registration charges from the date of deposit till the date of its adjustments towards 1st instalment. The complaint was contested by the respondent. They controverted his allegation. The learned District Forum dismissed the complaint. The complainant has come up in appeal against the order of the District Forum to the Commission.

IT is contended by the appellant that he was entitled to interest @ 10% p.a. on the registration charges deposited by him from the date of the deposit till the amount was adjusted towards the first instalment, as it was not adjusted within one year as was given in the brochure. On the other hand the learned Counsel for the respondent has argued that one years period is to be taken from the date when the scheme was closed and not from the date when the registration amount was deposited.

WE have duly considered the arguments. However, we agree with the contention of the complainant. It is mentioned in the brochure (page 24) that the registration deposit will carry interest @ 7% p.a., however, no interest would be paid in case, the deposit was withdrawn before the expiry of one year. From a reading of the clause, it is evident that the complainant is entitled to interest on the amount, from the date of deposit. Therefore, we are of the view that the complainant is entitled to the interest on the amount of Rs. 15,000/ - from the date of the deposit till the date when it was adjusted by the respondent towards payment of first instalment. The second contention of the appellant is that he was entitled to interest on the amount of Rs. 2,68,470/ - beyond the period of 13 months w.e.f. 10th July, 1986 @ 10% p.a. till the date when the letter of possession was given to him. He urges that the letter of possession was issued to him on 30th November, 1989 whereas he has been paid interest upto 31.3.89 the date of completion of the building. We have given our thoughtful consideration to the argument and find force therein. The complainant has been given interest on the amount of Rs. 2,68,470/ - for 2 months and 21 days i.e. from 10th Jan. 1988 to 31.3.1988. The appellant in our view is entitled to interest upto the date of demand -cum -allotment letter i.e. 27.9.89. Another contention of the appellant is that he has been given interest @ 7% p.a., whereas he is entitled to interest @ 10% p.a. This contention is also not without merit. We have held in DDA v.. AN. Seheal (A -89/92) decided on 22nd September, 1993 that the registrant is entitled to interest @ 10% p.a. That ratio is applicable to this case. Consequently, appellant is entitled to interest on the amount of Rs. 2,68,470/ -from 10.1.88 to 27.9.89 @ 10% p.a. For the aforesaid reasons we partly accept the appeal and direct the respondent to pay the amount of interest to the respondent as mentioned above, within a period of 3 months failing which action shall be taken against them under Section 27 of the Consumer Protection Act. Costs Rs. 500/ -. Appeal partly allowed.