CHITRA SHARMA vs M P Housing Board

BOTH these Appeals, No. 266/05 by complainant -allottee and No. 570/05 by opposite party the M.P. Housing Board arise from the order dated 31.1.2005 passed by the District Consumer Disputes Redressal Forum, Bhopal in Case No. 540/2004 directing the opposite party Board to refund Rs. 4,35,000/ - with interest @ 12% p.a. from the date of last deposit i.e., 12.5.2001.

THE grievance of the complainant is that the interest ought to be allowed from the dates of various deposits. The opposite party -Board challenges the very order allowing interest and claims that the Board is entitled to deduct 10% of the said amount. The amount in question was deposited against allotment of a house which as per opposite partys own showing was to be constructed and delivered to the complainant by June, 2001. However, the house could be ready for delivery only in April, 2004. Initially the price of the house was fixed at Rs. 6,50,000/ - but ultimately escalated price of Rs. 7,62,482/ - was demanded from the complainant. It was a clear case of deficiency per se on the part of the opposite party Board firstly on account of inordinate delay in completion of construction and secondly in the matter of undue escalation in price of the house (i.e., much more than 10%). Delay was rather inordinate being more than three years. Under these circumstances, the complainant was fully justified in refusing to take such delayed delivery of the house on escalated price. She was certainly entitled to seek refund of her entire money with interest and there is no question of any deduction being made by the Housing Board. The Forum below in our opinion was right in directing the opposite party Board to refund the amount with interest @ 12% p.a. from the date of last deposit. The rate of interest allowed cannot be also said to be excessive inasmuch as the complainant had raised loan from the Bank for deposit of the said amount with the opposite party Board.

FOR what we have said above both the appeals fail and are dismissed but with no order as to costs. The amount deposited by the Board under Section 15 of the C.P. Act be paid to the complainant. The balance amount with interest should be paid by the Board within two months on the receipt of copy of this order failing which the interest shall be payable on the said amount @ 15% p.a. Appeals dismissed.