GHAZIABAD DEVELOPMENT AUTHORITY vs Sushil Kumar

THIS is an appeal against the judgment and order dated 4.9.1997 passed by District Consumer Forum, Ghaziabad in Complaint Case No. 296/1996.

THE facts of the case stated in brief are that the complainant booked an MIG house in Govindpuram housing scheme and deposited a sum of Rs. 17,520/- on 24.5.1989. THE cost of that house was stated to be Rs. 1,75,000/- and the possession was to be delivered in two years time. Development Authority sent a schedule of payment-cum-reservation letter dated 8.11.1989. THE complainant had deposited upto 20.1.1992 a sum of Rs. 1,05,000/- but still the possession of the house was not given to the complainant and he had to spend a sum of Rs. 1,800/- per month as rent in which he was living at that time. THE complainant had prayed for immediate delivery of the possession of the house alongwith payment of 18% interest on the amount deposited from 24.5.1991. He has also claimed a sum of Rs. 25,000/- as compensation. The opposite party, Ghaziabad Development Authority, has alleged that the date of possession which was indicated was only tentative. The delay in handing over possession of the house to the complainant was beyond the control of Development Authority as the Hon''ble High Court had passed a stay order. Therefore, the complainant is not entitled to claim any interest. The original cost of the house was Rs. 1,73,000/- which has now been increased to Rs. 1,99,400/-. As soon as complainant deposits the entire amount, he could take possession of the house allotted to him.

Learned District Forum, after considering the case of the parties, came to the conclusion that Ghaziabad Development Authority is deficient in not giving possession of the house within the time indicated. It partly decreed the claim of the complainant and directed the Ghaziabad Development Authority to hand over possession of the house after completing all the development work. Complainant has also been allowed interest at the rate of 18% per annum alongwith Rs. 3,000/- as cost. It has further been directed that if the order is not complied with within the period of two months from the date of the order, then interest shall be payable at the rate of 21% per annum.

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. We have heard learned Counsel for the parties and perused the records.

ACCORDING to the learned Counsel for the appellant, the possession letter dated 21.9.1994 was issued to the complainant alongwith enhanced cost. The complainant was asked to deposit the same within 15 days. ACCORDING to learned Counsel, the possession has now been delivered on 20.5.1998. He has also informed the Commission that the last instalment was paid on 30.1.1992. ACCORDING to learned Counsel during the time the stay remained in operation, the complainant is not entitled to any interest. This contention of the learned Counsel cannot be accepted as no copy of stay order has been filed indicating that construction of the building was stayed by the Hon''ble High Court, before the start of the construction. In a recent bunch case, it was held by this Commission that order of the Hon''ble High Court merely stayed the construction of building only on those cases where construction had not started. In the case of Govindpuram, to which the bunch relates, it was held that the Ghaziabad Development Authority had already started construction. Hence the stay order will not apply to the constructions already started. In view of the finding as mentioned above, the complainants of all those cases were allowed interest for the period for which the stay order is alleged to have been in operation. When there was no stay order on construction of the house, it was the duty of the Development Authority to have developed the land and constructed the house. Ghaziabad Development Authority has not given any cogent reason for not completing the houses in time. Therefore, the complainant is entitled to get interest for the period of delay which occurred in construction of the house and handing over possession to the complainant. The complainant was not to be blamed for this delay. Learned Counsel for the appellant has also alleged that the last instalment was paid on 30.1.1992, hence the interest should be awarded two years after the payment of the last instalment. Reservation letter-cum-payment schedule is not before us to indicate as to whether the delivery of the house was to be given before the payment of all the instalments or was to be made on deposit of entire instalments. When a sum of Rs. 1,05,000/- has already been deposited by 20.1.1992 from time-to-time, it was the duty of the Ghaziabad Development Authority to have started construction from the very beginning. No doubt the time limit of two years was tentative but at the most one more year may be allowed to the Ghaziabad Development Authority for handing over possession of the house. Thus the interest has to be paid three years after the scheme was floated. Thus interest payable by the Ghaziabad Development Authority will be from the date of deposit of the amount, i.e. 20.1.1992. As the possession has already been delivered on 20.5.1998, therefore, interest shall be paid only upto that date. Ghaziabad Development Authority has also charged Chokidarana charges. When the house was not completed how Chowkidarana charges can be collected by the Ghaziabad Development Authority has not been made clear and these charges cannot be collected by the Ghaziabad Development Authority.

AS regards the grant of interest of 21% per annum if the decreed amount is not paid within two months from the date of the order, it may be stated that it has become penal and hence it cannot be allowed. The complainant will get interest of 18% per annum only.

THE appeal is, therefore, liable to be allowed in part. Order THE appeal is partly allowed and it is directed that the Ghaziabad Development Authority will pay interest at the rate of 18% per annum on a sum of Rs. 1,05,000/- from 1.2.1992 till the date of handing over possession of the house. THE complainant will not get interest at the rate of 21%. However, the complainant will get a cost of Rs. 1,500/- of this appeal. THE judgment and order of the learned District Forum shall stand modified accordingly. Let compliance of this order be made within two months from the date of this order. Let copy be made available to the parties as per rules. Appeal partly allowed.