T.C.GANESH vs INDIA HOUSING FINANCE And DEVELOPMENT LTD

THE case of the complainant is that the 1st and 2nd opposite parties promoted a housing project at Ambattur. THE complainant wrote to the 1st opposite party on 8.6.1994 and requested them to construct a flat for him in the said Scheme. THE 2nd opposite party vide its letter dated 8.8.1994 allotted a flat consisting of 921 sq. ft. costing a sum of Rs. 485/- per sq. ft. THEre was also a builders agreement entered into between the complainant and the 2nd opposite party on 12.12.1994 as per which the flats shall be completed within a period of 18 months. THE complainant paid a sum of Rs. 1.56.340/- to the 2nd opposite party in 3 instalments as follows: On 08.06.1994 Rs. 50,000/- On 14.07.1994 Rs. 60,000/- On 30.01.1995 Rs. 46,340/- THE total is Rs. 1,56,340/-. THE complainant met the opposite parties to find out the stage of the project. But he found that the project was not even started. THE complainant wrote to the opposite parties on 18.08.95 and requested them to inform the correct position. THE 1st opposite party by its letter dated 23.08.95 replied stating that the project was given up and offered to allot another flat at Adambakkam but the cost of that flat was higher than that of the agreed flat. THE complainant wrote to them on 4.9.1995 requesting them to return the money with interest and damages in one lump sum. But neither the flat was brought up nor the amount was returned. On these allegations the complaint was filed for directing the opposite parties to refund the sum of Rs. 1,56,340/- the amount paid to them and also to pay interest @ 24% p.a. as calculated in the complaint and further a sum of Rs. 2,00,000/- as damages for mental agony and also another sum of Rs. 2,00,000/- as compensation for difference in market value of the flat between the period of agreement and the present value.

THE 1st opposite party in their written version denied that they had anything to do with the transaction alleged of construction of flat. THEy further contended that they have not received any consideration from the complainant. THErefore, the complainant has no cause of action against them and hence the complaint is liable to be dismissed. The 2nd opposite party admit having entered into an agreement and having received a sum of Rs. 1,56,340/-. But however they contend that they have abandoned the scheme and they are starting a new scheme and if the complainant is so advised he can have a flat in the new scheme. Then they submit that they are prepared to repay the amount collected from the complainant with interest thereon at 15% p.a.

The points that arise for consideration are: 1. Whether there was any deficiency in service on the part of the opposite parties as alleged by the complainant? 2. If so, what amount of compensation can be granted to the complainant?

POINT No. 1: It is not denied that the complainant first wrote to the 1st opposite party for a flat in the project promoted by the 1st and 2nd opposite parties at Ambattur. It is not in dispute that the 2nd opposite party in its letter dated 8.8.1994 allotted a flat consisting 921 sq. ft. costing a sum of Rs. 485/- per sq. ft. It is also not in dispute that there was an agreement entered into between the complainant and the 2nd opposite party as per which the flat should have been completed within a period of 18 months. It is also an admitted fact that the complainant had paid amounts in 3 instalments totalling Rs. 1,56,340/-. Now the case of the complainant is that even though one year had passed the opposite parties have not done anything towards the construction of the flat. It is in evidence that the complainant has written a letter Ex. Al dated 18.8.1995. To that the 1st opposite party replied Ex. A3 dated 23.8.1995 stating that the project has been given up and offering to allot a flat in some other project at Adambakkam. According to the complainant the flat in the new Project at Adambakkam is costlier than the initially offered flat by the opposite parties to the complainant. From these it is apparent that having received as much as Rs. 1,56,340/- and even though as per the agreement the construction should have been completed within 18 months from the date of agreement, even for one year no work has been even started and blandly the 1st opposite party has written to the complainant stating that the project has been given up and telling the complainant that if he opts for another flat in a new project in Adambakkam he may be allotted a flat there. But according to the complainant the flat in Adambakkam is costlier than the flat initially offered. It is the further case of the complainant that the 2 opposite parties are by the same Management. From these it is apparent that there was gross deficiency in service on the part of the opposite parties. Point No. 2: We are clearly of the view that the opposite parties are liable to refund the amount of Rs. 1,56,340/-. We are also of the view that the opposite party shall pay interest @ 18% p.a. from the dates of respective payments of the 3 instalments till realisation. There is no doubt that the complainant should have suffered some mental agony because of the attitude of the 2 opposite parties. Regarding this we are of the view that a sum of Rs. 20,000 /- would be reasonable. We do not think that apart from these the complainant will be entitled for compensation on any other grounds.

ACCORDINGLY we order the opposite parties to return the sum of Rs. 1,56,340/- with interest thereon @ 18% p.a. from the respective date of payment of instalments paid by the complainant to the opposite parties, and Rs. 80,000/- for mental agony. We also order the opposite parties to pay a sum of Rs. 1,000/- as costs. The abovesaid amounts shall be paid within two months from today. Complaint allowed.