Karnataka Housing Board vs B.NAGARAJA SHETTY

THE appeal is directed against the Order dated 4.8.1990 passed by the District Forum, Gulbarga in Case No. 29/90/546 on its file. It arises in this way:- As per Notification dated 12.9.1980 issued by the appellant, the respondent filed his application along with DD of Rs. 600/- dated 13.10.1980 drawn on Vysya Bank, Ananthapur, as registration fee, for allotment of MIG II House, the estimated cost of which Rs. 25,000/-. Since the scheme was not implemented till 1985, on 25.2.1985 the respondent filed an application for refund of the registration fee of Rs. 600/-. Even, then the appellant did not refund the said amount in spite of legal notice. In the meantime, the Board issued another notification calling for applications for allotment the houses and also allowing the earlier applicants to participate in the draw of lots. So on 24.2.1989 the respondent requested the appellant to consider his application for allotment of a house and to treat the amount deposited earlier as registration fee. In spite of that, according to the complainant, his name was not included in the list of applicants prepared for the draw of lots. Hence he filed a complaint before the District Forum, Gulbarga for refund of registration fee of Rs. 600/-. for payment of Rs. 2,400/- as damages for non-refund of registration fee and costs of Rs. 350/-.

IN spite of service of notice, the appellant remained absent and the District Forum recorded the evidence of the complainant. The complainant produced exhibits p1 to p9. On the said evidence, the District Forum directed the appellant to pay Rs. 600/- with interest thereon at the rate of 12% per annum from 25.2.1985 till the date of payment and Rs. 18,000/- with interest thereon at the rate of 6% per annum from the date of the order till the date of payment and costs of Rs. 100/-. Being aggrieved by the said Order, the Karnataka Housing Board has preferred this Appeal. The learned counsel for the appellant has produced before us the list of applicants whose names had been included for the draw of lots taken on 10.3.1989. The copy of the same was furnished to the respondent. The name of the respondent is included at Sl. No. 79 in the said list. The respondent stated that he was present at the time of draw of lots and that his name had not been included. But in view of the records produced by the Housing Board, containing the name of the respondent and the fact that persons whose names appear at Sl. No. 77,78 and 82 were successful in the lots the said say of the respondent cannot be accepted. After going through the records, we are satisfied that his name was included in the list of applicants. In view of that the complainant is not entitled to any damages for not including his name in the list of applicants. Hence the order of the District Forum awarding damages of Rs. 18,000/- together with interest cannot be sustained.

Mr. Hegde, learned counsel for the appellant urged that in view of Sub-Cause 5 of Regulation No. 6 of the Karnataka Housing Board Allotment Regulations, 1983, the Housing Board is not liable to pay any interest on the registration fee. If it was a simple case of refund of registration fee, we would have agreed with the said contention of Mr. Hegde. In this case the registration fee was paid in 1980 and till 1989 the lots could not be drawn by the appellant for allotment of the houses. The complainant specifically made a request for refund of the said amount on 25.2.1985. In spite of legal notice, the appellant failed to refund the registration fee. The respondent requested the appellant to treat the same as registration fee by his application dated 24.2.1989. Under the circumstances, we think it proper to award interest to the respondent from 25.2.1985 to 24.2.1989 at the rate of 12% per annum. The Complainant must have spent some money for filing the application before the District Forum, for getting the legal notice issued to the appellant and for other incidental expenses. He has also appeared before this Commission on two occasions. Under the circumstances, we think it proper to direct the appellant to pay costs of Rs. 500/- to the Respondent.

IT is not disputed that the appellant has paid a sum of Rs. 600/- to the Respondent by Cheque dated 6.11.1990. In the result, the appeal is partly allowed and the order of the District Forum awarding damages of Rs. 18,000/- together with interest is set aside. The order of the District Forum is modified by directing the appellant to pay interest on Rs. 600/- from 28.2.1985 till 24.2.1989 at the rate of 12% per annum and also costs of Rs. 500/- within one month from today. Appeal partly allowed.