VIKRAM SINGH (SINCE DECEASED) vs Punjab Urban Planning and Development Authority

FEELING aggrieved against judgment and order dated 10.9.1998 passed by District Consumer Disputes Redressal Forum-II, U.T., Chandigarh (for short hereinafter referred to as the District Forum), this appeal was filed by the deceased complainant Shri Vikram Singh. Upon the death of Shri Vikram Singh, his Legal Representative/Legal Heir Shri Jagmohan Singh has been brought on record.

UPON issuance of notice of appeal, Mr. Anil Malhotra, Advocate appeared on behalf of the respondent-Chief Administrator, Punjab Urban Planning and Development Authority (for short hereinafter to be referred as PUDA). The record of the complaint case was summoned. We have heard the learned Counsel for the appellant and the learned Counsel for the respondent and have perused the impugned order and the record of the complaint case. The learned Counsel for the appellant contended that the respondent - PUDA being statutory authority was required to consider the case of the deceased complainant for allotment of a suitable plot as a shelter and particularly keeping in view the provisions of the Consumer Protection Act, 1986 which protected the interest of a consumer and the Act having been enacted with the pronounced object of providing better protection of the interest of consumers.

The learned Counsel for the respondent- PUDA, however, pointed out that in the instant case, the complainant Shri Vikram Singh (since deceased) had deposited Rs. 3,000/- for allotment of one HIG House after the Chief Administrator, Punjab Housing Board had announced a demand survey scheme for allotment of HIG houses in SAS Nagar, Mohali during October, 1989. The said scheme was later on given up as it was not beneficial and the amount or earnest money of Rs. 3,000/- was refunded vide payment order No. 147812 dated 10.6.1996. It appears that the District Forum disposed of several complaints under this scheme and a detailed order was passed in Complaint Case No. 924/1996, Smt. Jasbir Kaur v. PUDA, wherein a direction was issued to pay interest on the amount deposited by the complainant @ 18% per annum for the period up to the date of payment of the amount to the complainant less the period of first two years from the date of deposit. The costs of Rs. 550/- was also awarded.

THE complaint filed by the appellant Shri Vikram Singh was accordingly decided against which this appeal has been filed. Since the matter regarding the same scheme was pending before the Hon''ble Supreme Court of India in Civil Appeal No. 7798 of 2003 arising out of SLP (C) No. 3333/2002, Punjab Urban Planning & Development Authority & Anr. v. Sh. Surinder Kumar Sharma, this appeal was kept pending to await the decision of the Hon''ble Supreme Court of India. THE aforesaid appeal of PUDA v. Sh. Surinder Kumar Sharma (supra) was decided by the Hon''ble Supreme Court of India vide judgment dated 12.9.2003. Regarding the said scheme of PUDA and dealing with the order of the Hon''ble National Consumer Disputes Redressal Commission, New Delhi, the Hon''ble Supreme Court held as under: "We have considered the decision of the Fora under the Consumer Protection Act, 1986, it appears that they have relied upon those decisions where the National Commission had directed the payment of 18% interest no deposits made towards the purchase price in respect of flats which had been allotted. THE principle enunicated therein is not applicable in a case like the present one where all that had been paid was a token registration fee in order to carry out the work, which was clearly stated to be a demand survey. THEre was no assurance on the part of the appellant that the survey would result in the construction of housing irrespective of the outcome of the survey."

Regarding the rate of interest, the Hon''ble Apex Court awarded the interest @ 10% per annum calculated for a period of three years prior to the actual refund made. In view of the law laid down by the Hon''ble Supreme Court of India in the case of PUDA v. Sh. Surinder Kumar Sharma (supra), there was no assurance on the part of the appellant - PUDA that survey would result in the construction of housing irrespective of the outcome of the survey.

RESULTANTLY, the appeal is decided as per the judgment of the Hon''ble Supreme Court of India in Civil Appeal No. 7789 of 2003 arising out of S.L.P. (C) No. 3333/2002 PUDA & Anr. v. Sh. Surinder Kumar Sharma. The impugned order is modified to the extent that the interest @ 18% per annum shall be reduced to the rate of 10% per annum and that too for the period three years prior to the actual date of refund of the amount to Shri Jagmohan Singh, heir and legal representative of the deceased Shri Vikram Singh who had deposited the aforesaid sum of Rs. 3,000/-. There shall be no order as to the costs of appeal. The respondent - PUDA is directed to comply with the order, as modified above, both in rate of interest as well as for the period of the payment of interest, within two months from the date of receipt of certified copy of this order. Copies of this order be sent to the parties free of charge. Appeal disposed of.