GHAZIABAD DEVELOPMENT AUTHORITY vs SUDHIR KUMAR-Complainant

THIS is an appeal against the judgment and order of District Consumer Forum, Ghaziabad, passed on 20.3.1998 in Complaint Case No. 528 of 1997.

BRIELY stated facts of the case are as under : The complainant applied for a HIG house in Govindpuram Akansha Scheme II. A house was reserved for the complainant by the appellant Ghaziabad Development Authority. The complainant deposited a sum of Rs. 2,88,572/- on 3.4.1997 and the appellant vide its letter dated 25.12.1993 informed the complainant that House No. I-152 has been allotted to him. Price of this house was increased to Rs. 2,78,162/- from Rs. 2,15,000/-. Ghaziabad Development Authority was not in a position to give possession of the house in developed condition within the stipulated period. Hence the complainant was put to financial loss. The complainant has prayed for possession of the fully developed house alongwith payment of interest @ 24% per annum from the date of deposit of the amount. The complainant also demanded a compensation of Rs. 1,00,000/- towards mental torture and Rs. 10,000/- as cost of the case.

Ghaziabad Development Authority has alleged that only the estimated cost of the house was quoted initially and now the cost of the house has been increased from Rs. 2,15,000/- to Rs. 2,78,162/- and the District Consumer Forum cannot interfere on the point of escalation of cost. Possession letter dated 26.10.1993 was issued to the complainant but the complainant neither deposited the balance amount of Rs. 15,427/- nor completed the formalities for taking possession of the house. This was not done by the complainant till 20.11.1997 hence the possession could not be given to the complainant. It is further alleged that stay order of Hon''ble High Court remained in force from 24.4.1991 to 16.12.1993 hence the possession was delivered late.

AFTER considering the case of the parties, the learned Forum directed Ghaziabad Development Authority to pay interest from 17.12.1993 till the date of giving possession on the deposited amount @ 18% per annum alongwith a sum of Rs. 2,000/- as compensation. The possession of the house was to be given within two months from the date of judgment. In the event compliance is not made within the specified period, then interest @ 21% per annum will have to be paid. Aggrieved against this order of the learned Forum, the appellant has come up in the appeal challenging the correctness of the order passed by District Consumer Forum, Ghaziabad.

WE have perused the records of the case and heard the Counsel for appellant and opposite parties. According to learned Counsel for the appellant, possession letter was issued on 26.10.1993 to the complainant but the complainant did not come forward to take possession of the house. Learned Counsel has also alleged that the enhanced cost alongwith lease rent has not been deposited and besides this other formalities are to be completed by the complainant. Unless this is done, possession cannot be delivered. According to the learned Counsel for the appellant the formalities were to be completed in the year 1993. The complainant has submitted an affidavit indicating therein that amount of Rs. 2,88,572/- was deposited by him. This fact has also been mentioned in the judgment. This amount was deposited by the complainant by 3.4.1997. According to the complainant, a request was made to the appellant for giving possession of the house but as the development work was not completed by the appellant, the possession could not be given. A sum of Rs. 10,410/- is due against the complainant besides other formalities to be completed. The complainant should have paid the extra amount alongwith lease rent, etc. and till all the formalities are completed, possession cannot be given to the complainant. Besides this, Ghaziabad Development Authority has taken the plea that there was stay order of Hon''ble High Court in force from 24.4.1991 to 16.12.1993 due to which possession could not be given. We have held in a number of cases that the stay order to this type of houses does not apply and it only applies to the land. The amount was deposited by the complainant with the appellant in 1993 under the scheme. Therefore, the contention of the learned Counsel for the appellant that the development work remained in suspension on account of the stay order of Hon''ble High Court is not correct and no reliance can be placed on that.

THEREFORE, the appellant Ghaziabad Development Authority was at fault in not completing the development work in time. Keeping in view that development work was delayed by Ghaziabad Development Authority, it is liable to pay interest on the amount which was deposited by the complainant. However, if any amount remains to be paid to Ghaziabad Development Authority on account of increase in cost and lease rent, the same may be deducted from the interest payable by Ghaziabad Development Authority to the complainant before complying with the judgment and order of the District Consumer Forum, Ghaziabad.

THUS the appeal is partly allowed. Order The appeal is allowed to the extent that Ghaziabad Development Authority shall be entitled to deduct the amount of enhanced cost of the house alongwith lease rent to be paid by the complainant, from the interest payable @ 18% to the complainant on the deposited amount from the date of deposit till the date of possession. Payment of interest @ 21% per annum cannot be allowed. The amount decreed by District Consumer Forum, Ghaziabad, shall be paid to the complainant by the appellant. With the above modification in the judgment, judgment and order of the District Consumer Forum, Ghaziabad, are confirmed.

Let compliance be made within a period of two months.

LET copies of the judgment and order be issued as per norms. Appeal partly allowed.