ANIL KUMAR GARG vs JAGDISH CHOKHANI

WE propose to decide both these appeals which arise out of the order dated 13.6.2003 of State Commission, New Delhi by this common order. State Commission had directed the opposite parties/appellants in First Appeal No. 688 of 2003 to pay interest @ 15% p.a. on Rs. 4,82,125/- from the date(s) of deposit till actual payment to the complainant/appellant in First Appeal No. 539 of 2003.

FACTS giving rise to these appeals lie in a narrow compass. Father of the complainant had booked a flat in Chokhani Towers P-4, Sector-18, Noida in joint name with his wife with the opposite parties. Out of total sale consideration of Rs. 5,07,500/- amount of Rs. 4,82,125/- was paid between November, 1989 to July, 1993 in instalments. Under MOU dated 31.8.1997, the opposite parties out of said amount, agreed to pay Rs. 82,125/- on the signing of that MOU and balance amount of Rs. 4,00,000/- was to be paid in four equal instalments commencing from 30.9.1997. Thereafter, supplementary MOU dated 13.1.1998 was entered into between the parties and as per revised schedule of payments, Rs. 50,000/- was to be paid in January 1998, Rs. 50,000/- in February, 1998, Rs. 50,000/- in March, 1998, Rs. 50,000/- in April, 1998, Rs. 1,00,000/- in May, 1998 and Rs. 1,00,000/- in June, 1998. Amount of Rs. 2,50,000/- was not paid as per this revised schedule of payment. Yet another supplementary MOU was executed on 27.4.1998. As per this supplementary MOU, amount of Rs. 50,000/- was to be paid in June, 1998, Rs. 1,00,000/- in July, 1998 and Rs. 1,00,000/- in August 1998. Amount of Rs. 50,000/- which was payable in June, 1998 seems to have been paid within time. On failure of opposite parties to return balance amount of Rs. 2 lakhs, alleging deficiency in service, the complainant filed complaint. During pendency of complaint, the opposite parties paid the amount of Rs. 2 lakhs on 12.12.2000 to the complainant. We have heard Mr. Vikas Madan and Mr. Ajay Bhalla for the parties. Point which falls for consideration is on what amount, from which date and rate, the complainant is entitled to interest. State Commission has awarded simple interest on Rs. 4,82,125/- @ 15% p.a. from the date(s) of deposit of that amount. MOU/Supplementary MOUs are silent in regard to consequence in case the amount was not paid within the stipulated period. It is admitted case of the parties that out of said amount of Rs. 4,82,125/-, only amount of Rs. 2 lakhs which was payable in July and August, 1998 as per supplementary MOU dated 27.4.1998, had not been paid by the opposite parties to the complainant. Since the complainant under said MOU/Supplementary MOUs had agreed to receive amount of Rs. 4,82,125/- without interest in instalments, he is entitled to interest only on the said amount of Rs. 2 lakhs and that too from 1.8.1998 on Rs. 1 lakh and from 1.9.1998 on remaining amount of Rs. 1 lakh. Obviously, opposite parties who were in a dominating position, had forced the complainant to receive the amounts as per their convenience and they having failed to pay amount of Rs. 2 lakhs within the said agreed period, the complainant deserves to be awarded interest at enhanced rate of 18% in place of 15% p.a.

FOR the foregoing discussion, the complainant is held entitled to simple interest @ 18% p.a. on Rs. 1 lakh w.e.f. 1.8.1998 and Rs. 1 lakh w.e.f. 1.9.1998 till 12.12.2000. Both the appeals are disposed of accordingly leaving the parties to bear their own costs.