O.P.BAHRI vs VICE-CHAIRMAN, DELHI DEVELOPMENT AUTHORITY

BRIEFLY the facts are that the DDA announced in January ''91 that ready built flats would be given by draw of lots and invited applications from eligible allottees for their allotment. The complainant made an application for a category II flat on 30.1.91. In the draw held on 18.2.91 he was declared successful and was allotted a flat in Sarita Vihar.

THE allotment-cum-demand letter dated 30.4.91 was issued to the complainant informing him that he had been allotted flat No. 288 on 3rd floor in pocket ''L'' in Sarita Vihar and he was asked to deposit an amount of Rs. 4,27,200/- after adjusting the initial deposit of Rs.10,000/-, within 60 days from the date of issue of the letter. It was also mentioned that in case he failed to deposit the amount within that period he would be liable to pay interest @ 12% for the first month and 18% for the subsequent months and on expiry of 120 days his allotment would be liable to be cancelled. THE complainant deposited the amount on 22.6.91. He also submitted all the documents required by DDA as per their letter dated 30.4.91. The flat had not been completed by that time and consequently possession thereof could not be delivered to him within the stipulated period. He was ultimately delivered possession on 4.1.93. It is alleged that the respondent utilised the amount deposited by the complainant for a period of about 1 years and therefore he was entitled to get interest on that amount from the respondent @18% p.a. He addressed the letter to the Vice-Chairman, DDA but he did not hear anything in reply. Consequently he filed a complaint for recovery of the interest.

The notice of the complaint was given to the respondent. On 7.6.93, Sh. R.M. Goyal, Advocate appeared on behalf of the respondent and sought adjournment for written statement. The case was adjourned to 14.7.93. On that date the case was called several times but no one appeared on behalf of the respondent. Consequently they were proceeded against ex-parte. The complainant did not went to file any further evidence in the case. It was, therefore, adjourned to 22.7.93 for arguments.

THE only question that arises for determination is, whether the complainant is entitled to interest on the amount deposited by him, if so, at what rate. THE complainant was required to deposit the amount vide letter dated 30.4.91 within 60 days. In pursuance of that letter he deposited the same on 22.6.91. He also completed all the formalities. It was mentioned at the time of announcement that the flats were ''ready built flats''. Consequently as soon as he deposited the amount he became entitled to the possession of the flat within a reasonable period. We think that he should have been delivered the possession within three months after the deposit of the amount and completion of other formalities. However, the possession letter was issued in the end of December ''91 and finally the possession was given to him in January ''93. It cannot be disputed that the respondent utilised the amount deposited by the complainant and that he had been deprived of its use for the period from 22.9.91 to 4.1.93. In the letter dated 30.4.91 it was stated that if the complainant did not make the payment within 60 days he will pay interest @ 12% p.a. for the first month and @ 18% p.a. for the subsequent months. THE rates of interest have gone fairly high. It is well-settled that the complainant is entitled to get the interest at the same rate at which the respondent claims the interest from him. THErefore, we are of the opinion that the complainant is entitled to get interest @ 12% p.a. for one month and @ 18% p.a. for the subsequent months. THE amount of interest on Rs. 4,37,200/- from 22.9.91 to 4.1.93 comes to Rs. 99,025/- or say Rs. 99,000/-. For .the aforesaid reasons we accept the complaint with costs and direct the respondent to pay an amount of Rs. 99,000/- within a period of three months from the date of the order. In case they fail to pay the amount within that period they shall further be liable to pay interest on the said amount @18% p.a. from the date of the complaint i.e. 10.3.93 till the date of payment and action shall also be taken against them u/Sec, 27 of the Consumer Protection Act. Costs Rs. 1,000/-. Complaint allowed with costs.