Full Judgment Text
http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 1 of 2
CASE NO.:
Appeal (civil) 409 of 2003
PETITIONER:
Ghaziabad Development Authority
RESPONDENT:
R.B. Sharma
DATE OF JUDGMENT: 18/08/2004
BENCH:
S. N. VARIAVA & ARIJIT PASAYAT
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 in 1989 in the
Indirapuram Housing Scheme. The Respondent paid all dues. Yet
possession was not delivered within the time promised. As the
Respondent was in urgent need of accommodation he asked for refund
of his amount with interest thereon. The Appellants refunded the
amount but deducted a sum of Rs.5,800/-. The Respondent thus filed
a complaint stating that this amount should also be refunded with
interest thereon.
The District Forum held that as the Appellants themselves not
delivered possession within the time promised, the Respondent was
entitled to the refund of all amounts deposited and the Appellants
could not have deducted the sum of Rs.5,800/-. It therefore directed
return of that amount with interest at the rate of 18% thereon.
The State Forum dismissed the Appeal.
The National Forum has also dismissed the Revision.
We are in agreement with the observations of the District Forum.
If the Appellants had not delivered possession within the time
http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 2 of 2
promised the allottee would be entitled to claim for refund. Where
the refund is claimed due to the faults of the Appellants themselves
they cannot deduct any amount and must refund all the amounts
received from the allottee. We therefore see no infirmity in the
impugned Order or in the Orders of the District and State Forums. We
are told interest at the rate of 10% has been paid. The Appellants
shall now pay to the Respondent the balance amount of interest. The
interest to be calculated from the date of deposit of each installment
till the date of payment. If any TDS has been deducted the same shall
also to be refunded with interest at the rate of 18% thereon. Along
with the payment, the Appellants shall also handover the calculation
sheet showing therein how they have calculated the interest amount.
We clarify that this Order shall not be taken as a precedent in
any other matter having been passed on account of the 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.
The Appeal stands disposed off according.