LUCKNOW DEVELOPMENT AUTHORITY vs K.C. SRIVASTAVA

THIS is an appeal against the judgment and order dated 31.12.1997 passed by District Consumer Forum-II, Lucknow in Complaint Case No. 759/1995.

THE facts of the case stated in brief are that the complainant deposited a sum of Rs. 9,000/- on 14.11.1983 for allotment of a plot. THE value of the plot was Rs. 36,000/- and the rest of the amount of Rs. 27,000/- alongwith an amount of Rs. 984/- was deposited by the complainant on 22.11.1984. In spite of the fact the complainant has not been given possession of the allotted plot. THE writ petition was also filed by the society in which there was a compromise between the complainant and the society and the writ petition was dismissed on 13.1.1997. THE learned District Forum has decreed the claim of the complainant and directed Lucknow Development Authority to complete the development within six weeks and to deliver the possession of the plot to the complainant. It further directed Lucknow Development Authority to pay interest at the rate of 18% per annum from the date of deposit till the date of payment alongwith cost. It also directed for payment of interest at the rate of 24% per annum if the amount is not paid within six months. Aggrieved against the order of the learned District Forum, the Lucknow Development Authority has come in appeal and has challenged the correctness of the order.

We have heard the learned Counsel for the parties.

IT has been stated before this Commission that the possession of the plot has been delivered on 10.5.1999. According to the learned Counsel, the Hon''ble High Court had ordered for maintenance of status quo and as such the possession of the plot cannot be delivered to the complainant till the time the stay order was not vacated. A perusal of the order dated 27.8.1984 of the Hon''ble High Court in Civil Miscellaneous Writ Petition No. 4257/1994, Feroz Gandhi Cooperative Housing Society Ltd. v. Lucknow Development Authority & Ors., it will be apparent that status quo was directed to be continued in the meantime. Thus we find that the parties were directed to maintain status quo with respect to the plot in question and the possession of the plot could not have been delivered by the Lucknow Development Authority. This writ petition ended with the compromise and finally the orders were passed on 13.1.1997. Thus it is clear that the complainant is not entitled for any interest from 27.8.1994 till 13.1.1997. The possession has been delivered on 10.5.1999. IT has further been argued that according to the orders passed in the writ petition, the possession had to be delivered within six months of the High Court order. When the writ petition pending before the Hon''ble High Court had been disposed of on 13.1.1997 there was no point in delivering possession of the plot in dispute on 10.5.1999. The complainant was entitled to take possession within a reasonable time from 13.1.1997. Thus Lucknow Development Authority is liable to pay interest with effect from 14.1.1997 to 10.5.1999 till the possession of the plot was handed over to the complainant. The interest is to be paid at the rate of 18% per annum as has been held by the National Commission in the case of George Thomas & Ors. v. Ghaziabad Development Authority & Ors., I (1999) CPJ 18 (NC). The Hon''ble Supreme Court has also taken the same view and has held that 18% interest is payable by the authorities making construction in the case of Surendra Kaur v. Govt. of Punjab & Ors., (1998) 9 Supreme Court Cases 592, as also in the case of Lata Construction Company & Ors. v. Dr. Ramesh Chandra Ramaniklal Shah & Ors., III (1999) CPJ 46 (SC)=X (1999) SLT 77=1999 (9) Supreme 534.

THUS the result is that the complainant is entitled to get interest at the rate of 18% per annum on the deposited amount with effect from 13.1.1997 to 10.5.1999. The payment should be made within two months. If the payment is not paid within two months then the further interest @ 18% p.a. shall be payable from 11.5.1999 to the date of payment. Order The appeal is partly allowed and the Lucknow Development Authority is directed to make payment of interest at the rate of 18% per annum from 13.1.1997 to 10.5.1999 within a period of two months. If the payment is not made within two months the further interest shall be payable from 11.5.1999 till the date of payment at the rate of 18% per annum on the deposited amount. The judgment and order of the learned District Forum shall stand modified accordingly. There will be no order as to the cost. Let copy of this order be made available to the parties as per rules. Appeal partly allowed.