GHAZIABAD DEVELOPMENT AUTHORITY vs MANOJ KUMAR SWAMI

THIS is an appeal against the judgment and order dated 6.1.2000 passed by District Consumer Forum, Ghaziabad in Complaint Case No. 615/1999.

THE facts of the case stated in brief are that the complainant applied for a Kiosk in Pratap Vihar. On his request a Kiosk was reserved on 17.10.1995 in favour of the complainant, the cost of which was indicated as Rs. 34,020/-. THE amount demanded by the Ghaziabad Development Authority was deposited within the time stipulated but even then possession of the Kiosk has not been handed over to the complainant. The opposite party alleged in the written version that it is not possible to construct the Kiosk and hence the amount can be refunded alongwith 5% per annum interest.

After considering the evidence on record and hearing the two parties, the learned District Forum directed for refund of the amount deposited alongwith 18% per annum interest. It also allowed Rs. 2,000/- as compensation and Rs. 100/- as cost of the proceedings. It also directed that if the compliance is not made within two months, the interest payable shall be 20% per annum.

AGGRIEVED against the order of the learned District Forum, the opposite party Ghaziabad Development Authority has come in appeal and has challenged the correctness of the order passed by the Forum. We have heard the learned Counsel for the appellant without issuing notice to the respondent/complainant.

LEARNED Counsel for the appellant has argued that this scheme was abandoned and hence the amount can be taken back by the complainant alongwith 5% per annum interest. It was the duty of the Ghaziabad Development Authority to have refunded the amount which was deposited by the complainant when it had abandoned the scheme and the construction was not done. As Ghaziabad Development Authority has not refunded the amount and utilised the same for its own purposes for all these years, it is liable to pay interest at the rate of 18% per annum as has been rightly awarded by the learned District Forum. Therefore, we do not find that the learned District Forum has committed any mistake in allowing the refund of the deposited amount alongwith interest and compensation. However, the interest at the rate of 20% per annum in case of default of refund within the time stipulated, cannot be sustained and it has to be reduced to 18% per annum. Thus the appeal is liable to be allowed in part. Order The appeal is allowed to the extent that the interest payable shall be 18% per annum only from the date of deposit till the date of payment. The interest at the rate of 21% per annum is struck off. The rest of the judgment with the above modification is confirmed.

LET compliance of this order be made within a period of six weeks from the date of this order.

LET copy as per rules be made available to the parties. Appeal partly allowed.