PUNJAB HOUSING DEVELOPMENT BOARD vs SHRI ANIL SHARMA

THE appellant, the Punjab Housing Development Board, Chandigarh has preferred this appeal against an order dated the 21st of May, 1990 passed by the District Forum, Chandigarh awarding the respondent a sum of Rs. 400/- by way of interest on the deposit which he (the respondent) had placed with the appellant towards the allotment of a residential house in S.A.S. Nagar.

THE facts of the appeal case No. 11, the Punjab Housing Development Board v. Shri S.K. Sharma, are identical and that appeal has also been preferred against the order of the District Forum awarding interest on the initial deposit made by the respondent (in that case) with the appellant. And this order would dispose of both these appeals. The learned counsel for the appellant has laid considerable emphasis on the Board''s status as a statutory body governed by its own Act and the rules framed there under. And according to him the Rules of the Board do not contain any provision for allowing interest to the applicants on the deposits which they make at the time of submitting their applications for the allotment of houses. But this argument does not have much merit. If the Board''s "rule" or "practice" does not allow it to pay interest to its clientele who have their thousands and even lakhs of hard-earned savings locked with it without bearing any interest then it is time that the Board revised its "rule" as well as "practice" so as to make them fair and just. And the Board would only be conforming to the general practice observed by other undertakings engaged in this business.

The only other matter requiring consideration is regarding the rate of interest allowed by the District Forum -10% p.a. which is most reasonable and lower than what the Central and State Government allow.

IN the light of what has been stated in the preceding paragraphs both these appeals fail and are dismissed. There would be no order as to costs. Appeal dismissed.