GHAZIABAD DEVELOPMENT AUTHORITY vs Vipin Kumar Gupta

THIS is an appeal against the judgment and order dated 30.5.1998 passed by District Consumer Forum, Ghaziabad in Complaint Case No. 343 of 1995.

THE facts of the case stated in brief are that the complainant applied for a plot in Indrapuram Scheme. THE cost of the plot was indicated as Rs. 1,12,000/- and its area was 112 sq. mts. THE reservation letter was issued on 18th May, 1991. THE complainant was assured that the possession will be delivered within two years after developing all the facilities. THE complainant deposited the entire amount as per payment schedule, but the complainant was not given possession of the developed plot till the year 1993. Still there was no development work on the site. THEre was no provision for electricity, water, road, sewer line etc. THE complainant has, therefore, prayed for handing over possession of the developed plot alongwith damages, as there is deficiency in service. The opposite party has alleged in the written version that there was delay in handing over possession as the complainant delayed the deposit of the amount. Now all the amenities have been provided on the spot and the possession can be delivered.

Learned District Forum, after considering the case of the parties, came to the conclusion that there was deficiency on the part of the Ghaziabad Development Authority. It, therefore, allowed interest from 1.7.1993 at the rate of 18% per annum on the amount which was deposited upto 30.6.1993. The possession was to be delivered within two months of the date of judgment after providing all the amenities. A sum of Rs. 2,000/- was also awarded as cost and compensation. It was also provided that if the compliance is not made within two months, the interest shall be payable at the rate of 20% 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 passed by the Forum. We have heard the learned Counsel for the appellant without issuing notice to the respondent as issuing notice to the respondent would have burdened him further and the judgment would have been the same.

LEARNED Counsel for the appellant has argued that the last instalment was deposited on 19.6.1994 while the possession letter was issued on 26.2.1997. The delay in handing over possession was on account of non-taking order of possession by the complainant. In this case the facts are that even if the last instalment was deposited on 19.6.1994, the possession was not delivered to the complainant before 1999. When the possession has been delivered after a lapse of 5 years after deposit of the last instalment, there is gross deficiency in service on the part of the Ghaziabad Development Authority. Had the possession been delivered within two years of the last date of deposit, then the interest would not have been payable by the Ghaziabad Development Authority at all. When it took long period of five years, then it has to pay interest from the date of last deposit. Therefore, in the present case the interest payable shall be from 20th June, 1994 till the date of delivery of possession. The learned Counsel has argued that the rate of interest awarded at the rate of 18% per annum is on the higher side. The Hon''ble Supreme Court and the National Commission in the cases of Surendra Kaur v. Govt. of Punjab & Ors., (1998) 9 Supreme Court Cases 592; Lata Construction Company & Ors. v. Dr. Ramesh Chandra Ramaniklal Shah & Ors., III (1999) CPJ 46 (SC)=X (1999) SLT 77=(1999) 9 Supreme Court Cases 534; and George Thomas & Ors. v. Ghaziabad Development Authority, I (1999) CPJ 18 (NC), have held that the interest at the rate of 18% per annum can be awarded against a builder. However, penal interest at the rate of 20% per annum cannot be awarded on the facts of the case. Hence it is reduced to 18% per annum. The complainant will get interest at the rate of 18% per annum from 20.6.1994 till the date of payment.

THE appeal is, therefore, liable to be allowed in part. Order THE appeal is allowed to the extent that the rate of interest is reduced to 18% per annum from 20% per annum which has been allowed as penal interest. With this modification, the rest of the judgment and order of the learned District Forum are confirmed. Let the appellant comply with the order within a period of two months from the date of this order. Let copy as per rules be made available to the parties. Appeal partly allowed.