VILLUPURAM HOUSING UNIT, TAMIL NADU HOUSING BOARD vs P. TAMILARASAN

-PURSUANT to the advertisements issued by the opposite party, the 1st complainant applied for construction of a flat by the opposite party and also deposited a sum of Rs. 1,500/- on 25.5.1990. But the opposite parties have not proceeded with the scheme and the complainant''s desire to own a house of his own was thus dashed to pieces. Therefore, the complainant prays for return of the sum of Rs. 1,500/- along with a sum of Rs. 1,50,000/- towards loss and Rs. 1,00,000/- towards mental agony.

THE opposite parties contended that it is no doubt true that the opposite parties inserted an advertisement informing about the scheme and inviting applications for allotment of houses. But owing to certain reasons, the opposite party could not proceed further with the scheme and the scheme had to be dropped and, therefore, in such circumstances, there is no deficiency in service. THE opposite parties are thus not liable to pay any compensation. The lower Forum directed the opposite parties to refund a sum of Rs. 1,500/- with interest at 18% along with a sum of Rs. 2,000/- for deficiency in service and Rs. 500/- as cost. Hence the present appeal.

So far as the lower Forum ordered the refund of a sum of Rs. 1,500/-, there cannot be any dispute about the same. But, however, the order of the lower Forum directing the opposite party to pay a sum of Rs. 2,000/- as compensation for deficiency in service cannot be sustained at all. The scheme was proposed by the opposite parties and pursuant to the said scheme, applications were invited and admittedly the 1st complainant submitted an application along with a deposit of Rs. 1,500/- as required. But the scheme could not be further proceeded with owing to certain reason and, therefore, it was abandoned by the opposite parties. There is no other contract between the parties either in writing or otherwise. The matter has not reached the stage of concluded contract between the parties. There was at best only an offer which has not been accepted by the opposite parties so far. Therefore, in such circumstances, the complainant cannot claim any compensation on the ground of deficiency in service, nor the opposite parties are liable to pay any compensation. The complainant is entitled to only the refund of Rs. 1,500/- deposited by him since there was no demand for the return of the amount with interest. The complainant will be entitled to interest on the sum of Rs. 1,500/- only from the date of the complainant viz., 9.9.1998. The other reliefs asked for by the complainant have to be rejected.

IN the result, the appeal is allowed in part, modifying the order of the lower Forum as follows: There will be a direction to the opposite parties to refund the sum of Rs. 1,500/- with interest at 9% from the date of the complaint viz., 9.9.1998. The other reliefs prayed for by the complainant will stand dismissed. IN the circumstances, the parties are directed to bear their own costs throughout. Appeal allowed.