Kanpur Development Authority vs MOHAN LAL DWIVEDI

THIS is an appeal against the judgment and order dated 8.5.2001 passed by District Consumer Forum, Kanpur Nagar in Complaint Case No. 672 of 1998.

THE facts of the case stated in brief are that the complainant applied for a plot in Kanpur Vikas Pradhikaran''s Jawaharpuram Scheme. He deposited a sum of Rs. 15,000/- on 30.10.1993 as reservation amount. By letter dated 15.2.1994 the complainant was allotted a plot. THEreafter the complainant deposited a sum of Rs. 1,03,800/- on 23.3.1994. THEreafter this scheme was abandoned by Kanpur Vikas Pradhikaran. THE complainant was not allotted any other plot in lieu of the allotted plot. THE complainant alleged that Kanpur Development Authority realises penal interest at the rate of 21% per annum. Hence the complainant should also be allowed refund of the deposited amount along with 21% per annum interest. The opposite party in its written version had admitted the deposit of amount. It alleged that since the scheme has been abandoned, hence 8% per annum interest is payable on the deposited amount. It is also alleged that the complaint is barred by limitation.

The parties led evidence before the learned District Forum, who after hearing the case of the parties, came to the conclusion that there was deficiency in service on behalf of the Kanpur Vikas Pradhikaran. Hence it directed for refund of Rs. 1,18,800/- along with 12% per annum interest and awarded Rs. 5,000/- as compensation.

AGGRIEVED against the order of the learned District Forum, the Kanpur Vikas Pradhikaran 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. Notice was not issued to the respondent/complainant and the appellant was heard on the date of admission itself.

LEARNED Counsel for the appellant has argued that the interest should have been allowed to the complainant by the learned District Forum at the rate of 5% per annum in view of the terms of the brochure. A perusal of the terms and conditions of the brochure goes to show that if the complainant asked for cancellation of the allotted plot and prayed for refund of the amount, then the interest payable should be at the rate of 5%. In the present case there is no fault of the complainant. It is the fault of the Kanpur Vikas Pradhikaran which has abandoned the scheme. When the Kanpur Vikas Pradhikaran has abandoned the scheme then it is liable to pay interest. The Hon''ble Supreme Court in the following cases held that the Development Authorities are liable to pay interest at the rate of 18% per annum in case the amount which was deposited by the allottee was utilised by the Development Authority for its own purpose : (1) George Thomas & Ors. v. Ghaziabad Development Authority, I (1999) CPJ 18 (NC). (2) Dr. Ramesh Chandra Ramniklal Shah & Ors. v. Lata Construction Company & Ors., I (1996) CPJ 81 (NC). (3) Haryana Urban Development Authority v. Rajnish Chander Sharde, III (2000) CPJ 8 (SC)=VII (2000) SLT 142=JT 2000 (8) SC 154. (4) Ghaziabad Development Authority v. Dhamesh Chand Goel, S.L.P. (Civil) No. 11315/2000 (three Judges).

In the present case the learned District Forum has only allowed interest at the rate of 12% per annum. As no appeal has been filed by the complainant, the interest at this rate has to be confirmed. As the learned District Forum has also awarded Rs. 5,000/- as compensation, therefore, the interest at the rate of 12% per annum is a reasonable rate, which the learned District Forum has allowed. There is no ground for interference in the judgment and order of the learned District Forum. The appeal is liable to be dismissed. ORDER The appeal is dismissed and the judgment and order of the learned District Forum are confirmed. There will be no order as to the costs under the circumstances. Let compliance of the order be made within a period of six weeks from today. Let copy be issued to the parties as per rules. Appeal dismissed.