Full Judgment Text
http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 1 of 2
CASE NO.:
Appeal (civil) 6035 of 2002
PETITIONER:
Haryana Urban Development Authority
RESPONDENT:
Dr. Ashok Kumar Aggarwal
DATE OF JUDGMENT: 24/09/2004
BENCH:
S.N. VARIAVA & A.K. MATHUR
JUDGMENT:
J U D G M E N T
S. N. VARIAVA, J.
Before this Court a large number of Appeals have been filed by
the Haryana Urban Development Authority and/or the Ghaziabad
Development Authority challenging Orders of the National Consumer
Disputes Redressal Commission, granting to Complainants, interest at
the rate of 18% per annum irrespective of the fact of each case. This
Court has, in the case of Ghaziabad Development Authority vs. Balbir
Singh reported in (2004) 5 SCC 65, deprecated this practice. This
Court has held that interest at the rate of 18% cannot be granted in all
cases irrespective of the facts of the case. This Court has held that the
Consumer Forums could grant damages/compensation for mental
agony/harassment where it finds misfeasance in public office. This
Court has held that such compensation is a recompense for the loss or
injury and it necessarily has to be based on a finding of loss or injury
and must co-relate with the amount of loss or injury. This Court has
held that the Forum or the Commission thus had to determine that
there was deficiency in service and/or misfeasance in public office and
that it has resulted in loss or injury. This Court has also laid down
certain other guidelines which the Forum or the Commission has to
follow in future cases.
This Court is now taking up the cases before it for disposal as per
principles set out in earlier judgment. On taking the cases we find that
the copies of the Claim/Petitions made by the Respondent/Complainant
and the evidence, if any, led before the District Forum are not in the
paper book. This Court has before it the Order of the District Forum.
The facts are thus taken from that Order.
In this case, the Respondent was allotted a plot bearing No. 1144,
Sector-14(P), Hisar on 21.8.1986. The Respondent paid substantial
amounts but the possession was not delivered. Thus the Respondent
filed a complaint. On these facts, the District Forum awarded interest
@ 15% p.a. on the entire deposited amount.
The State Forum dismissed the Appeal and confirmed the Order of
the District Forum. The Appellants went in Revision before the National
Commission. The National Commission dismissed the Revision filed by
the Appellants relying upon its own decision in the case of Haryana
Urban Development Authority v. Darsh Kumar and observing that
interest @ 18% p.a. has been awarded by them under similar
circumstances.
As has been stated in so many matters, the Order of the National
Commission cannot be sustained. It cannot dispose of the matters by
confirming award of interest irrespective of the facts of that case. The
National Commission may, on facts of a case, award
http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 2 of 2
compensation/damages under a head set out in Balbir Singh’s case
(supra) if it concludes that such an award is justified. The Order of the
National Forum accordingly stands set aside.
In this case possession has been given on 12th November 1997.
Appellants have also paid a sum of Rs.80,767/- on 29th May 2000.
However, whilst paying this amount they have deducted TDS. As these
are payments towards compensation/damages for mental agony and
harassment TDS could not have been deducted. The Appellants shall
pay to the Respondent within one month from date of this Order the
amount deducted as TDS with interest thereon at 12% from date of
deduction till payment. In our view the payment already made and the
refund of TDS amount will be sufficient recompense.
We clarify that this Order shall not be taken as a precedent in any
other matter as the order is being passed taking into account special
features of the case. The Forum/Commission will follow the principles
laid down by this Court in the case of Ghaziabad Development Authority
vs. Balbir Singh (supra) in future cases.
With these observations, the Appeal stands disposed of with no
order as to costs.