V.G.P. HOUSING (P) LTD. vs MADHURAM BALASUNDARAM

THESE two appeals are disposed of by this one order. One appeal has been filed by the complainant and the other by the opposite parties.

THE opposite parties are promoters of plots. THEy acquire lands; developed it into farm schemes and lay outs and sell plots to different people on payment in instalments. THE complainant was allotted one plot for a sum of Rs. 62,820/- payable in easy instalments. THE complainant has paid the entire amount. Subsequently the opposite party claimed amount for registration and allied things. That amount was also paid. THE total amount paid by the complainant is Rs. 86,700/-. According to the complainant, inspite of repeated demands the opposite parties have not completed registration of the plot. THE act of the opposite parties amounts to unfair trade practice. On these grounds the complaint has been filed for return of the amount paid by the complainant with interest thereon and also compensation for damages. The complaint was contested by the opposite parties contending that the delay in executing the Sale Deeds has occasioned due to the reason that the concerned Scheme land has been declared surplus under the Urban Land Ceiling and Regulation Act, 1973 and a notification to that effect has been issued. On coming to know of this they filed a writ application and obtained stay for further proceedings and also for injunction against dis-position of lands. The above facts were informed to the complainant and he was made to understand that Sale Deed would be registered only after the disposal of the writ petition. In these circumstances there is no question of unfair trade practice as alleged and therefore the complaint cannot be maintained.

The District Forum on consideration of the matter accepted the case of the complainant that there was unfair trade practice. It ordered repayment of the amount paid by the complainant i.e., Rs. 86,700/- with interest thereon @ 18% p.a. from 21.9.92 till payment. It also ordered payment of Rs. 25,000/- as damages for mental agony besides Rs. 500/- as costs. The opposite party has filed an appeal assailing the said order of the District Forum. The complainant has filed an appeal pleading that the compensation for mental agony awarded is too low and it must be enhanced and also that interest shall be ordered to be paid from the respective dates of payments.

AFTER hearing both sides and also on perusal of the records we find that in the year 1989 (13.11.89) the Government has issued notifications in respect of the land under the Scheme and soon thereafter in June, 1990 the opposite parties have filed a writ application before the High Court for quashing of that notifications. It also appears that the opposite parties have obtained injunction against the Government from dis-position of the lands. From these it appears that it is only due to the extraneous reasons it has been rendered difficult and impossible for the opposite parties to register the sale deeds. That being the case we cannot hold that there was unfair trade practice on the part of the opposite parties. Now coming to the reliefs asked for, the complainant had asked first relief for registration of the sale deed and alternatively for payment of the amount paid with interest thereon, and also he has asked for compensation for mental agony. The District Forum has ordered payment of the amount with interest @ 18% p.a. Now during the proceedings before us the learned Counsel for the complainant states that as on now the complainant is not interested in the land as it may not be feasible in law to registrar a Sale Deed. Then as regards the order of the District Forum for payment of the amount with interest the opposite parties do not seem to be aggrieved. Therefore, the order for payment of the amount of Rs. 83,700/- will stand, and as regards the interest the rate will stand but in respect of the date from which interest has been paid we are of the view that it will be reasonable for the opposite parties to pay interest from the respective dates of payments. What remains is the decree for damage as to mental agony. In the circumstances stated above we cannot hold that there was mental agony of the complainant since it cannot be said that there was any fault on the part of the opposite parties. Therefore we are of the view that the sum of Rs. 25,000/- granted for mental agony cannot be sustained. In this position the appeal filed by the complainant for enhancement of compensation cannot be maintained. In the result therefore in the appeal filed by the opposite party there will be an order for payment of Rs. 86,700/- with interest thereon at 18% p.a. from respective dates of payments. The part of the order of the District Forum for payment of damages of Rs. 25,000/- is set aside. There will be no order as to costs, in this appeal. The appeal filed by the complainant is dismissed. There will be no order as to costs. A.P. 836/95 partly allowed. A.P. 920/95 dismissed.