G.D.A. vs Satya Prakash

THIS is an appeal against judgment and order dated 11.11.1999 passed by District Consumer Forum, Ghaziabad in Complaint Case No. 541/1997.

THE facts of the case stated in brief are that the complainant applied for a house in self-financing scheme of Govindpuram. THE price was indicated as Rs. 32,000/- and the possession was to be given within two years of the date of allotment of the house. THE complainant has not been delivered possession of the house so far. Hence he filed the present complaint claiming Rs. 32,000/- as deposited amount alongwith 18% per annum interest. The opposite party has alleged in the written statement that keeping in view the present position, one more room was added in the house and the cost was increased to Rs. 90,800/-. The possession which was intended to be given in two years was merely tentative.

The learned District Consumer Forum, after considering the case of the parties, directed for refund of the amount alongwith 18% per annum interest from the date of deposit till the date of refund. A sum of Rs. 2,000/- as compensation and a sum of Rs. 200/- as cost was also awarded. It also directed that if the amount is not paid within two months of the date of judgment, interest shall run to 2% per month.

AGGRIEVED against the order of the learned District Forum, the Ghaziabad Development Authority has come in appeal and has challenged the correctness of the order passed by the District Forum. We have heard the learned Counsel for the appellant and perused the order as well as evidence on record.

ACCORDING to learned Counsel for the appellant, as one more room was added to the proposed accommodation, therefore, the cost of the house was increased from Rs. 32,000/- to Rs. 90,800/-. It is common knowledge that when a person applies for allotment of either a plot or building, he does so keeping in view his budget. He only makes promise of that much amount which he is likely to pay for the acquisition of the property. As he had applied for one room apartment costing Rs. 32,000/- he had planned to spend that much money and made provision for payment of that much amount from his own resources or after taking loan, but the price of the building is increased by almost three times. Thus the entire budget of the complainant will fail and he will not be in a position to mobilise resources for payment of that much amount which in this case is Rs. 90,800/-, besides increased cost of registration on this amount. The appellant cannot force an allottee to accept a house which was beyond his means and for which he never contemplated that the price will increase by such a height. Therefore, the complainant was well within his right for asking refund of the amount when he found himself unable to pay the increased price. The rate of interest which has been awarded by the learned District Forum cannot be said to be at the higher side, as argued by the learned Counsel for the appellant. The interest at the rate of 18% has been awarded by the National Commission in the case of George Thomas & Ors. v. Ghaziabad Development Authority, I (1999) CPJ 18 (NC), Hon''ble Supreme Court in the case of Surendra Kaur v. Government 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 Company & Ors. v. Dr. Ramesh Chandra Ramaniklal Shah & Ors., III (1999) CPJ 46 (SC)=X (1999) SLT 77=1999 (9) Supreme 534., has also upheld the interest of 18% in case of builder. Thus in view of what has been said above, the appeal is liable to be dismissed. However, the penal interest of 20% per annum is struck down and the interest shall be paid at the rate of 18% per annum from the date of respective deposits till the date of payment. Order The appeal is partly allowed to the extent that the rate of interest shall be 18% per annum only and not 20% per annum from the date of deposit till the date of payment as held by the learned District Forum. With this modification the rest of the judgment of the learned District Forum is confirmed. Let compliance of this order be made within a period of two months from the date of this order. Let copy be made available to the parties as per rules. Appeal partly allowed.