LAXMAN KUMAR HARWANI vs M.P.STATE CO-OP. HOUSING COMPLEX

THIS appeal arises out of order passed by the M.P. State Commission dismissing the complaint filed by the appellant/complainant. Very briefly the facts of the case are that the appellant had booked an MIG Flat on 30.11.1989 with the respondent and deposited the total amount of Rs. 2,07,000/- along with interest for delayed payments on several occasions. Flat was to be delivered within 18 months. It was delivered on 24.4.1993 i.e. after a delay of about two years. The appellant moved the State Commission for grant of several reliefs including payment of interest @ 18% for delayed delivery, refund of enhanced price charged by him, etc. The State Commission after hearing both the parties dismissed the complaint against which this appeal was filed.

RESPONDENT remained absent in spite of notice, hence proceeded ex parte. It is argued by the appellant before us that since the respondent had been charging penal rate of interest @ 16.5% from him for the delayed period in respect of payment of instalments, he should also be compensated for delayed delivery of the flat.

We have seen the material on record and heard the arguments and find that it is an admitted position that the appellant was allotted an MIG flat on 22.1.1990 whose estimated cost was shown at Rs. 2,06,000/-. Terms and conditions of allotment were also attached. According to these terms and conditions, if there was delay in payment of instalments, then the instalment was to be paid along with the current bank rate i.e. 16.5%. One of the terms also stated that in case of delay in delivery of the flat, the respondent was to pay interest @ 5% on the deposited amount for the delayed period in handing over the possession. Admittedly, this has been paid. After hearing the arguments of the petitioner and material on record and also in view of our own order in HUDA & Ors. v. Darsh Kumar (Revision Petition No. 1197 of 1998) where we have awarded interest @ 18% we are inclined to agree with the plea of the appellant that on ground of equity, he is entitled to a rate of interest of 16.5%. This is the rate of interest which was charged from him for delayed payments. Order of the State Commission is set aside and the respondent is directed to pay interest @ 16.5% for the money deposited for the period of delay in delivery of possession. Since certain amount (Rs. 16,623/-) has already been given to the appellant being the interest amount @ 5%, the appellant shall pay an additional amount arrived at on the basis of rate of interest @ 11.5% [16.5(-) 5%]. The appeal is allowed. No orders as to costs. Appeal allowed.