R.V.SHIVARAMAN vs CHENNAI FOUNDATIONS (P) LTD.

THE case of the complainant is that he entered into an agreement with the opposite party for construction of a flat for him with a total area of 825 sq. ft. THE apposite party received a sum of Rs. 8,50,000/- as the full cost price of construction. But the opposite party failed to construct and hand over the flat in time i.e., in the month of May, 1997. Due to this conduct of the opposite party the complainant has suffered a lot living in a rented house paying a rent of Rs. 4,000/- per month and also advance and also paying heavy interest on the amount borrowed by him for payment to the opposite party. Further he has paid a sum of Rs. 35,000/- to the opposite party for purchasing stamp papers for registration. THE complainant issued a registered notice through his Counsel on 24.6.1998 but the opposite party has not sent any reply to the same. On these allegations the complaint has been filed for direction to the opposite party for return of the amount paid by him with interest thereon and other compensation.

THE opposite party having received the notice from the Commission has remained ex parte. The point that arises for consideration is whether there was deficiency in service on the part of the opposite party and if so what relief can be granted to the complainant. Point : The complainant was examined as P.W. 1 and he has given evidence substantiating the averments in the complaint. There is no gain saying that having received the full cost of construction and also the amounts for stamp papers totalling to Rs. 8,85,000/- the opposite party failed to construct the flat. This definitely amounted to deficiency in service. The opposite party is liable to return the said amount. They are also liable to pay interest thereon. In our view interest @ 18% p.a. would be reasonable. But no amount can be awarded for the alleged payment of rent by the complainant. For mental agony, in our view, the complainant can be awarded a sum of Rs. 10,000/-.

In the result, we direct the opposite parties to pay a sum of Rs. 8,85,000/- as refund of the cost price and also the cost of stamp papers with interest thereon @ 18% p.a. from the date of complaint i.e., 22.7.1998 till date of payment and also a sum of Rs. 10,000/- as compensation for mental agony and further a sum of Rs. 1,000/- as costs of this proceedings. These amounts shall be paid within 3 months from today. Complaint allowed with costs.