G.D.A. vs POONAM BAJAJ

THIS is an appeal against the judgment and order passed on 23.5.1998 by the District Consumer Forum, Ghaziabad, in the Complaint Case No. 703 of 1995.

FACTS of the case, stated in brief, are as under : The complainant applied for a mini MIG house in Lajpat Nagar Apartment Self Financing Scheme and deposited a sum of Rs. 26,250/- on 10.8.1990 as registration fee. Reservation-cum-payment schedule was sent by Ghaziabad Development Authority vide letter dated 22.12.1990 according to which possession was to be delivered in two years'' time but no development work was done by Ghaziabad Development Authority till 1993. The complainant, therefore, applied for refund of the deposited amount alongwith interest. Ghaziabad Development Authority in its written version has alleged that period of possession which was fixed was merely tentative and if the complainant intends to get the refund of her money, then the same can be refunded by the appellant without any interest under the rules.

After considering the case of the party, the learned Forum came to the conclusion that there is deficiency in service on the part of Ghaziabad Development Authority and hence the appellant was directed to refund the deposited amount alongwith interest @ 18% p.a. within two months and also pay Rs. 2,000/- as compensation and cost. The learned Forum also directed in its order that if the amount is not paid within the stipulated period then interest @ 21% shall be paid.

AGGRIEVED against the order the appellant Ghaziabad Development Authority has come up in the appeal challenging the correctness of the order passed by District Consumer Forum, Ghaziabad. We have heard learned Counsels for the parties. Learned Counsel for Ghaziabad Development Authority argued that the period given for handing over the possession of the house was merely tentative. The facts on records show that the housing scheme was floated in the year 1990 and the possession should have been given in the year 1992. The complainant had deposited the entire amount within the period fixed by Ghaziabad Development Authority.

THE appellant has not led in its evidence to show that the development work was complete and the house was ready for delivery of possession within the time bound period. When the period is disclosed by Ghaziabad Development Authority for handing over the possession, then its means that the possession should be handed over within that period because the person, registered under the housing scheme, is led to believe that possession of the house will be given within the time bound period. Marginal allowance can be made in such cases but it does not mean that Ghaziabad Development Authority should take years together to complete the development work and utilise the money for its own purposes. Thus the learned District Forum was perfectly justified in ordering for refund of the deposited amount alongwith 18% interest p.a. and compensation. It has not been shown in the evidence on record that Ghaziabad Development Authority in its scheme was charging penal interest @ 21% p.a. on the default made by the allottees. Therefore, the interest @ 21% p.a. cannot be allowed and interest @ 18% only can be paid in view of the decision of National Commission and Supreme Court as under : National Commission in the case of George Thomas & Ors. v. Ghaziabad Development Authority, I (1999) CPJ 18 (NC), has held the view that the rate of interest to be allowed to the complainant should be same which the Authority recovers from allottees on defaults on the amounts payable to it. Hon''ble Supreme Court in the case of Surendra Kaur v. Govt. of Punjab & Ors., 1998 (9) Supreme Court Cases 592, has held that interest shall be payable at the rate of 18% per annum. Similarly the Apex Court in the case of Lata Construction Co. & Ors. v. Dr. Ramesh Chandra Ramaniklal Shah & Ors., III (1999) CPJ 46 (SC)=X (1999) SLT 77=1999 (9) Supreme Court Cases 534, has also upheld the interest @ 18% p.a. in case of the builder. In view of above the appeal is liable to be dismissed. Order The appeal is dismissed and the judgment and order of District Consumer Forum, Ghaziabad, are confirmed to payment of interest @ 18% p.a. only and cost of Rs. 2,000/- to be paid to the complainant by the appellant. Let compliance be made within two months and copies of the order be issued as per rules. Appeal dismissed.