PADAMSEN vs Ghaziabad Development Authority

THIS complaint was filed on 5.5.1994 by Sri Padamsen through attorney Smt. Durga Raina of New Delhi against Ghaziabad Development Authority through its Vice-Chairman. Briefly stated facts contained in the complaint are as follows : The opposite party Ghaziabad Development Authority had floated a housing scheme in Sanjay Nagar area of Ghaziabad in response to which the complainant applied for MIG Flat and deposited Registration amount of Rs. 7,000/- on 4.7.1989. As per the schedule of payment prescribed by the opposite party an amount of Rs. 34,000/- was to be paid by 30.9.1989. The next instalment was to be paid by 31.3.1990. The instalments could not be paid by the complainant in time and were paid together alongwith Rs. 7,000/- as interest on 26.11.1990. The opposite party through a letter demanded details of payments which were submitted by the complainant on 28.11.1990. On 14.12.1990 the registration of the complainant was cancelled on the ground of non-submission of the demanded details through letter dated 26.9.1990. Since cancellation was made on 14.12.1990 and he had paid regular instalments along with interest on 26.11.1990, the cancellation was wrong and untenable. Thereafter, the complainant sent a number of letters to the authorities of the opposite party and even met various authorities from time-to-time. But the file of the complainant could not be traced and the flat in question was allotted to some other person of the choice of the Vice-Chairman. Thereafter he sent a registered letter dated 1.5.1993 to the Vice-Chairman of the opposite party that if he cannot be given an MIG flat as assured, then his money amounting to Rs. 1,09,000/- may be returned along with 24% interest per annum w.e.f. January, 1985. THIS request was also not acceded.

THE reservation letter issued to the complainant goes to show that even after the payment is not made in time penal interest is to be charged and he had paid the penal interest. Moreover, the cancellation should not have been done without giving the complainant a notice to this effect and in the instant case no notice of cancellation was given. It has also been alleged in the complaint that construction cost has escalated more than 5 times and in the present condition the cost of the MIG Flat in an equally placed area comes to rupees seven lakhs. The complainant for this alleged lapse has prayed that an amount of rupees seven lakhs be paid to him or to his attorney and an amount of Rs. 1,09,000/- deposited by him along with 24% p.a. interest with damages of Rs. 45,000/-.

The opposite party, Ghaziabad Development Authority filed their written statement on 7.8.1998. A copy of the registered notice was also sent to the Attorney Smt. Durga Raina. In spite of the service of the notice of the written statement the complainant did not appear nor was the replication filed. In the written statement, the opposite party has stated that the complainant deposited the Registration amount of Rs. 17,000/- on 27.1.1989 vide letter dated 5.6.1989. A house was reserved for the complainant and'' the estimated cost was informed. The complainant was required to deposit the reservation amount of Rs. 17,000/- which was deposited on 4.7.1989. But the complainant did not deposit the instalments in time as per reservation letter dated 5.6.1989. On 26.9.1989, the opposite party had sent a registered letter to the complainant for depositing all the instalments alongwith interest but since the complainant failed to do so and nothing was heard from the complainant, the reservation of the house was cancelled on 7.1.1990 for which information was conveyed to the complainant vide letter dated 14.2.1990. The complainant on 26.11.1990 deposited an amount of Rs. 75,000/- in the Bank of the opposite party without the consent of the opposite party because before that date the cancellation has already been made. The complainant became defaulter and the allotment of the house was cancelled, which was allotted to some other needy person. It was further stated in the written statement that the amount deposited by the complainant could be refunded as per the rules of the Ghaziabad Development Authority and the complainant in this regard has not gone through the contents of the reservation letter which clearly state these facts. Hence there is no deficiency in service on the part of the opposite party.

IT was also stated the allotment of the house was cancelled on 7.11.1990 and the complaint was filed on 5.5.1994 which is highly time-barred. We have gone through the complaint along with annexures contained therein. We have also perused the written statement of the opposite party. It will be important to go through the Annexure 7 of the complainant. It provides that the reservation amount of Rs. 17,000/- was to be deposited on 5.7.1989, the first instalment of Rs. 34,000/- was to be paid by 30.9.1989, 2nd instalment of Rs. 34,000/- was to be paid by 31.3.1990, 3rd and 4th instalments of equal amount were to be paid by 30.9.1990 and 31.3.1991. The reservation amount was deposited by the complainant on 4.7.1989, well within the time. But the first and the second instalments were deposited by the complainant on 26.1.1990 along with Rs. 7,000/- as interest. It appears that the permission of the Ghaziabad Development Authority, opposite party, was not obtained for depositing the delayed payment. Para 1 of the reservation letter provides that if the amount is not paid within the prescribed time, penal interest of 18% shall be payable and if the payment is not paid within 3 months after its due date along with penal interest, if any, the allottment is treated as cancelled without notice. Grace period of one month has also been provided. In the instant case the complainant deposited the amount of first and second instalments on 26.11.1990 and quite contrary to the instructions given in the reservation letter, at the most, the first instalment would have been deposited in January, 1990. The first instalment was deposited after one year and one month i.e. after 13 months. Annexure-4 of the written statement indicates that a registered notice was sent to the complainant on 26.9.1990 and neither the requried amount was deposited nor any reply to this notice was given. Therefore, the allotment was cancelled on 14.12.1990. It does not matter if the applicant has deposited the amount of 2 instalments on 26.11.1990. It appears that the first time he made an application to the opposite party was on 28.11.1990 after depositing the 2 instalments. The opposite party therefore was well within its rights to cancel the reservation made. In the circumstances, we find that the complainant does not deserve any compensation. However, the reservation amount of Rs. 17,000/ - and the amount of Rs. 75,000/- deposited by him on 26.11.1990 may be returned along with an interest of 12% p.a. to the complainant as this money has been lying with Ghaziabad Development Authority and they have already been earning interest on it or have been transacting their business with this money along with the other funds placed with them. In case of registration money of Rs. 17,000/- deposited by the complainant, the refund may be made as per rules of opposite party, Ghaziabad Development Authority. ORDER The complaint is decided in terms of above observations. The opposite party will refund to the complainant an amount of Rs. 92,000/- plus interest @ 12% per annum w.e.f. the date of its deposit till the date of payment and the amount of Registration money shall be refunded as per rules of the Ghaziabad Development Authority within two months from today failing which interest at the rate of 12% per annum shall be paid from expiry of two months. Let copies of this order be issued as per rules. Complaint disposed of.