LODHA GROUP OF COMPANIES vs DEEPAK N. BHAT

WE are proceeding to dispose of this appeal at the stage of its admission itself on perusal of the material available in the appeal paper book and on hearing the learned Advocate for appellant and respondent who is present in person. (For brevity''s sake appellant/O.P. is referred to as "Builder" and respondent/complainant as "Flat purchaser").

THE appellant in the appeal had taken exception to the order passed on 30.5.2002 by the District Forum, Thane, whereby the Forum has held the Builder being deficient in rendering services to the flat purchaser and in not ensuring the delivery of the possession of the flat on completion of the construction within agreed time as per contract and so holding, the District Forum has ordered refund of the amount which he received from the flat purchaser towards part consideration of the flat with interest at the rate of 18% p.a. till realisation plus Rs. 1,000/- as cost. It is noticed that the transaction dates back in July, 1997, wherein the Builder agreed to sell the flat to the flat purchaser for a total sum of Rs. 3,55,630/-. The possession was to be made over on completion of the construction within one year of execution of the agreement i.e. 10.7.1998. The flat purchaser towards consideration from time to time paid Rs. 1,35,157/-. The last payment of Rs. 24,900/- of the said amount has been made on 14.10.1997.

According to the complainant, as he did not notice satisfactory progress in the construction of the building on the part of the Builder and the Builder did not adhere to the delivery part as per contract, that he stopped making further payment. It is his further case that he arranged to pay the amount on releasing from his investment in fixed deposit where interest payable was 14% p.a.

IT is in these circumstances that the complainant filed the complaint seeking refund of the amount paid with compensation etc. The Builder appeared and contested the claim contending that there was default on the part of the flat purchaser to pay consideration of the flat as per contract and the Builder in general term denied being deficient.

HOWEVER, the District Forum did not find the stand taken on and behalf of the Builder as tenable and accepting the case of the complainant has passed the award. By and large we find the award just, fair and reasonable needing no interference except on the rate of interest as awarded by the District Forum at 18% which appears to be on higher side. It is clearly borne out that the Builder could not adhere to the delivery schedule and complete te construction of the building in question. The flat purchaser in the circumstances was justified in withholding further payment towards consideration as done by him.

THAT being so, we do not find any merits in this appeal. The rate of interest awarded at 18% p.a. as noticed herein above is on higher side and 14% p.a. will be just and reasonable. Hence the following order. ORDER Appeal is partially allowed to the extent as under : 1. The order impugned in this appeal vide Operative Clause Nos. 1, 2, 3 and 4 stands confirmed. 2. Operative Clause 3 to be read as 14% p.a. in place of 18% p.a. 3. As far as this appeal is concerned, no order as to cost. 4. We direct District Forum, Thane to release the sum of Rs. 1,00,000/- deposited by the appellant/Builder to the complainant towards part satisfaction of the award in question. 5. We are providing eight weeks'' time to the O.P. for compliance of the remaining part of the award. 6. Office to furnish copies of the order to the parties. Appeal partially allowed.