Balasaheb Sopanrao Pokale vs Mandatai Ashokaro Sathe

Leave granted.

This appeal arises from a judgment of the National Consumer Disputes Redressal Commission dated 3 January 2019. The respondent instituted a consumer complaint before the District Consumer Disputes Redressal Forum at Nashik claiming that there was a deficiency of service on the part of the appellant as it failed to abide by the terms of the agreement for sale of a residential flat. The District Forum allowed the complaint in the following terms:

"The opponent will complete the construction of Flat No.16 in "Rushikesh Apartment" and hand over possession to the applicant within one month times from the date of order and the sale deed be registered with own costs in favour of the applicant. Also all other documents be fulfilled.

Otherwise, to pay the amount of Rs.3,00,000/-(Rupees Three Lakhs only) and penal simple interest at the rate of 18% thereon from 23.12.2004 till full and final payment to the applicant, if it is not possible to hand over possession and registration of Sale Deed.

The opponent will pay the costs of Rs.1,000/-(Rupees One Thousand Only) to the applicant."

The appellant unsuccessfully pursued an appeal before the State Consumer Disputes Redressal Commission. Against the dismissal of the appeal, the appellant filed a revision before the National Consumer Disputes Redressal Commission which was dismissed on 3 January 2019.

Notice was issued by this Court on 29 April 2019 confined to the quantum of interest. This Court also granted stay on the execution of the decree conditional on the appellant depositing an amount of Rs.3,00,000/- (Rupees Three lakh only) before the District Consumer Disputes Redressal Forum.

Learned counsel appearing on behalf of the appellant states that the order for deposit has been complied with and deposit has been effected on 20 May 2019. A copy of the receipt has been produced.

In pursuance of the notice issued by this Court, the respondent has entered appearance and has filed a counter affidavit.

The interests of justice would be served if the rate of interest which was awarded by the District Forum is fixed at twelve per cent instead of eighteen per cent per annum.

Hence, we modify the order passed by the District Forum by directing the appellant to pay interest computed at the rate of twelve per cent per annum. The respondent would be at liberty to withdraw the amount of Rs.3,00,000/- (Rupees Three lakh only) deposited in pursuance of the order of this Court dated 29 April 2019, in partial satisfaction of the decretal claim.

The appeal is allowed to the aforesaid extent. There shall be no orders as to costs.

The rest of the amount shall be paid to the respondent within one month.