ASHOK VIJ vs DELHI DEVELOPMENT AUTHORITY

THIS is a complaint filed under Section 17 of the Consumer Protection Act, 1986 (hereinafter referred to as ''the Act'') on the ground that the complainant Shri Ashok Vij had registered himself under the 1985 Sixth Self Financing Scheme Category-II floated by the O.P. and had also deposited Rs. 10,000/- as the registration amount. However, though the complainant had opted for a flat in Vasant Kunj and Sukhdev Vihar as his first and second preference for locality the O.P. vide allotment letter dated 10/18.8.1994 had allotted a flat in favour of complainant in Dwarka Block-I, Pocket-I, Category-II, Duplex (GF+FF) for a total estimated cost of Rs. 8,30,000/-. In response thereto the complainant had paid in lumpsum four instalments of Rs. 7,28,607/- being 90% of the total cost, inclusive of the interest as calculated on the instalments. However, despite having paid 90% of the cost of the flat, the possession of the flat allotted, was not handed over to the complainant and as such the complainant decided to visit the site of construction. On visit, the complainant was shocked to find that the construction of the flat was at the very initial stage and there was no likelihood of the same being completed and handed over in the near future. Accordingly, the complainant contacted the Commissioner (Housing) of the O.P. and protested against the misrepresentation and also wrote several letters dated 12.12.1994, 30.5.1995, 14.8.1995, 4.3.1996 and 7.6.1996 to the O.P. to which no response was received. Accordingly, the complainant filed the present complaint seeking directions to the O.P. to complete the construction of the allotted flat immediately and give possession of the same or in the alternative to allot three bedrooms flat in Vasant Kunj or Sarita Vihar. It is also prayed that the O.P. be directed to pay interest on the amount deposited by the complainant @ 24% p.a. compounded yearly from the date of payment i.e., 0.12.1994 till the date of possession of the flat and to adjust the balance cost of the flat from the interest and balance amount to be paid to the complainant. The complainant has also claimed Rs. 2,00,000/- as compensation.

THE O.P. in its reply/written version has taken the preliminary objections that the complaint is barred by limitation and that the complainant will be paid interest for the delayed construction as per terms and conditions agreed to between the parties and as such no cause of action has arisen in favour of the complainant. On merits, it is stated that the complainant was required to pay the amount in lumpsum together with A.P.I. in order to bring the complainant at par with the other allottees who had already made the payment of instalments earlier. Furthermore, as per the terms and conditions of allotment the O.P. has paid interest for the delayed construction to the allottee @ 7% p.a. after 30 months and @ 10% p.a. after 36 months till the date of 5th and final instalment and as such the complainant cannot claim interest @ 24% p.a. It is also stated by the O.P. in its reply/written version that there is no deficiency in service on its part so as to entitle the complainant for any compensation as alleged. The complainant has filed a rejoinder reiterating the contents of the complainant and denying those of the written statement filed on behalf of the O.P. Both parties have led their evidence by filing affidavits. The complainant has filed his own affidavit by way of evidence whereas the affidavit of Shri N.N. Puri, Director (Housing) DDA has been filed on behalf of the O.P.

We have carefully perused the documents/material on record, as well as have heard the arguments advanced on behalf of the parties. During the pendency of the present proceedings the possession of the flat in question was handed over to the complainant in September, 1999 and the amount of Rs. 1,01,702/- charged in excess from the complainant was also refunded by the O.P. vide cheque No. 45536 dated 29.10.1999. Thus the sole surviving controversy in the present complaint is with regard to the payment of interest and damages as claimed by the complainant. Insofar as the deficiency in service on the part of the O.P. is concerned the same is writ large on the fact of it as it is an admitted case that payment of 90% of the cost of the flat was duly deposited by the complainant by December, 1994, whereas the possession of the flat fully completed was handed over to the complainant only in September, 1999. Therefore, the complainant in the circumstances is definitely entitled to interest. It is contended by the O.P. that the amount of interest payable to the complainant as per terms and conditions of allotment is @ 7% after 30 months and @ 10% after 36 months till the date of 5th and final instalment or the completion of construction whichever is earlier. Even if the said contention of the O.P. is upheld even then considering the fact that there has been inordinate delay in handing over the physical possession of the flat in question even after the date of completion of construction the complainant is entitled to interest as payable under the policy of D.D.A. upto the date of fifth and final instalment and thereafter @ 18% p.a. till the date of handing over the possession of the flat. The complainant is also entitled to interest on the amount of Rs. 1,01,702/- charged in excess from the complainant from the date of deposit till the date of actual refund on 29.10.1999. The complainant is also entitled to the cost of present proceedings.

THEREFORE, in view of the above discussion the present complaint filed by the complainant is allowed with the directions to the O.P. to pay to the complainant interest @ 18% p.a. on the deposited amount form the date of 5th and final demand letter till the date of actual possession. The O.P. will also pay interest @ 18% p.a. on the amount of Rs. 1,01,702/- refunded as excess charges to the complainant from the date of deposit till the date of refund on 29.10.1999. The O.P. will also pay cost of Rs. 10,000/- to the complainant. The above said awarded amounts are directed to be paid to the complainant within 30 days of the date of receipt of this order. The present complaint filed by the complainant stands disposed of in above terms. Complaint allowed.