SYED NIZAM ALI vs ANITA PRADEEP & ANR.

The complainants entered into an agreement with the petitioner for purchase of two sites of 1200 sq. ft. each at the rate of Rs. 400/- per sq. ft. in Rajaji Nagar, Lingambudhi Village, Kasaba Hobli, Mysore Taluk, Mysore District by way of an agreement dated 31.07.2006. A sum of Rs. 2,40,000/- was paid by the complainants to the petitioner at the time of execution of the aforesaid agreement. Clause 3 of the agreement which is relevant for the purpose of deciding this petition reads as under:- 3. The time limit for developments of the schedule layout is six months. If in case of default by either parties as agreed and stated in this agreements the defaulting party would be penalized to an extent of 15% of the amount received or paid respectively. This is to say that

a. If as agreed by the first party the site is not handed over with all development work completed to the second party by the first party within six months then the second party may choose to withdraw from Purchasing the site and the first party is liable to pay to the second party with an additional 15% extra on the received amount to the second party.

b. If the second party fails to pay the remaining amount to the first party within two weeks after the first party has completed the development of the layout and the site is ready for registration. The first party may choose to cancel the site allotted to the second party and then 15% of the amount would be deducted from the amount received from the second party by the first party and the remaining would be refunded to the second party."

The petitioner did not handover the possession of the site in question to the complainants. Consequently, a complaint under Section 12 of the Consumer Protection Act came to be filed by the complainant against the petitioner seeking the following reliefs:- " a) A sum of Rs. 2,40,000/- towards the payment made by the complainant to the opposite parties in respect to site no. 129 and 130, towards the advance sale value, vide agreement of sale dated 31.07.2006..

b) Further a sum of Rs. 36,000/- being 15% extra amount as agreed in the agreement of sale.

c) Further interest of a sum of Rs. 1,98,000/- on a consideration amount of Rs. 2,40,000/- from 31.07.2006 to 10.02.2010 (i.e. the date of agreement of sale till this complaint).

d) Further direct the opposite parties to pay interest at the rate of 18% per annum from the date of this complaint till realization of Rs. 2,40,000/-.

e) Further direct the Opposite party to pay the litigation cost of Rs. 10,000/- and a sum of Rs. 10,000/- for the unfair trade practice.

f) or alternatively direct the opposite party to confirm the title of the schedule site properties, in favour of the complainants 1 and 2 by receiving the balance consideration amount of Rs. 7,20,000/-."

The complaint was contested by the petitioner, but later on the parties entered into a compromise, which was duly recorded by the District Forum and an order in terms of the said compromise was passed. Clause 3 and 4 of the compromise application filed before the Consumer Forum are important and read as under:- 3. The Opposite Parties shall execute and register a sale deed in favour of the complainants with respect to site bearing no. 129 and 130, Rajaji Nagar Layout, Lingambudhi Village, Kasaba Hobli, Mysore Taluk, within a period of 9 months or two sites, on the main road, in the layout formed at Sy. No. 134, At Lingambudhi Village, Kasaba Hobli, Mysore Taluk, measuring 30ft x 40 ft. each.

The Opposite Parties in the event failed to execute sale deeds by receiving the balance sale consideration amount within a period of nine (9) months, the complainants shall have the right and liberty to execute the award, for claiming of the advance consideration amount paid, along with interest, and damages, as detailed out in the agreement for sale dated 30.07.2006 and the opposite parties shall not dispute the claims made by the complainants in any manner whatsoever." 4. The petitioner did not comply with the consent order which the District Forum passed on 02.07.2010 on the basis of the aforesaid compromise, which led to the complainant seeking execution of the aforesaid order by taking recourse to the provisions of Section 27 of the Consumer Protection Act.

Vide its order, the District Forum issued the proclamation and attachment warrant against the petitioner. Subsequently non-bailable warrants of the arrest of the petitioner also came to be issued.

Being aggrieved, the petitioner approached the concerned State Commission by way of an appeal. The said appeal having been dismissed by way of order dated 26.06.2014, they are before this Commission by way of this revision petition.

It would be seen from para no. 3 and 4 of the compromise entered into by the parties that in the event of default of the petitioners to execute the sale deed in favour of the complainants, the petitioners were liable to refund the advance received by them alongwith the interest and damages as detailed in the agreement dated 31.07.2006. In view of the aforesaid compromise, if the petitioners pays the principal amount of Rs. 2,40,000/-, received from the complainant alongwith appropriate interest and damages calculated at the rate of 15% of the amount received by him, the consent order passed by the District Forum shall stand duly satisfied. In that case, the complainant cannot insist on handing over of the sites in question and execution of a sale deed in his favour.

The learned counsel for the petitioners submits on instructions that the petitioners are ready to refund the amount received from the complainants alongwith appropriate interest and damages as agreed in the agreement dated 31.07.2006.

In our opinion, the petitioner should pay interest to the complainant at the rate of 12% per annum, considering that in addition to the interest, they also have to pay damages at the rate of 15% on the amount received from them. We, therefore, dispose of this revision petition by directing that if the petitioner pay to the complainants within four weeks from today (1) principal amount of Rs. 2,40,000/- received by them from the complainant, (2) damages amounting to Rs. 36,000/- and (3) interest at the rate of 12% per annum w.e.f. 31.07.2006, the consent order passed by the District Forum shall stand satisfied and the proceedings initiated by the complainant under Section 27 of the Consumer Protection Act shall stand terminated.

The learned counsel for the petitioner states that in compliance of the interim order passed by this Commission, they have already deposited a sum of Rs. 5 lakhs with the District Forum on 09.09.2014. The interest therefore will be payable only till 09.09.2014. The balance amount if any payable in terms of this order shall be calculated and deposited before the District Forum within four weeks from today. The District shall verify the deposit dated 09.09.2014. Thereafter, the District Forum shall pay the amount deposited earlier and the additional amount if any to be deposited by the complainant in terms of this order and terminate the proceedings initiated under Section 27 of Consumer Protection Act. In the event of default of the petitioner in compliance of this direction, this revision petition shall stand dismissed without any further orders, thereby restoring the orders passed by the District Forum and the State Commission. It is made clear that no coercive steps against the petitioner shall be taken by the District Forum till four weeks from today. ''Dasti'' in addition.