ASHOK MOMIN G.A.S. vs Bhubaneswar Development Authority

THIS is an appeal by the complainant being dissatisfied with the award of Rs. 5,000/- as compensation because of delay in delivering possession of the house to the complainant.

THE case of the complainant is he complied with all requirements for allotment of an HIG (C) category house including deposit of E.M.D. of Rs. 30,000/- at the first instance and followed by subsequent deposit up to 6th E.M.D. in between the dates 30.9.1989 to 31.7.1990. Admittedly according to the condition of the brochure the delivery of the house was not given during the period of 2 years from the date of payment of the second E.M.D. His case is, by letter dated 11.3.1991 the O.P. acknowledged the receipt of Rs. 1,68,379/- and intimated the complainant the house would be ready for delivery (sic.) the May and June, 1991. Before giving delivery of possession the B.D.A. by their letter dated 1.6.1992 indicated the price of the house to have been raised from Rs. 2.87 lakhs to Rs. 3.33 lakhs. Subsequently this cost has reduced to 10% of the original costs and thus it was Rs. 3,13,700/-. Out of this escalated costs of Rs. 28,700/- the complainant was required to deposit a sum of Rs. 11,473/- by 29.8.1992 before taking over physical possession of the house. Admittedly he was given possession on 12.11.1993. The point for decision is whether the complainant is entitled to pay the escalated costs of Rs. 28,700/- which has been claimed by the B.D.A. admittedly before delivery of possession vide letter of the authorities dated 1.6.1992.

So far this point is concerned, in various cases we have already held that the demand for escalation of the costs of the house cannot be adjudicated by this Forum particularly when complainants admitted case is he has been asked for this amount before he had taken delivery of possession. Therefore, complainant remains liable to pay this amount if not already paid.

THE other grievance is he is entitled to interest on the deposited amount because of the B.D.A. not delivering the possession of the house within the stipulated period as indicated in the brochure. THE complainant claims that fixing of a cut-off date i.e. 30.6.1992 in order to calculate interest for default in payment of instalments is arbitrary. He claims that since the possession of the house was given on 12.11.1993, therefore, the cut-off date 30.6.1992 is violative the Clause B(4) of the brochure. We find ample justification for the complainant to claim this. Therefore, we hold that he is entitled to the interest at the rate of 7.5% percent per annum on his deposited amount from the respective date of deposit.

THE interest part so calculated shall be adjusted towards the escalation cost, if the same has not been paid. Complaint petition allowed with Rs. 1,000/- as cost, so far as this Commission is concerned. Complaint allowed with costs.