IMPORTANT POINT
Where possession of allotted house was not given as scheme was cancelled and complainant refused to accept alternative house in other scheme offered at increased price, he would be entitled to refund of deposited amount with interest at 18% p.a.

JUDGMENT

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.

2. 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.

3. In this case the Respondent applied for a house in Govindpuram Extension/Sadhna Duplex Residential Scheme. The entire amount was deposited. Ultimately the Respondent was issued a reservation letter in Karpuripuram Scheme, but even in this Scheme the possession of the house was not delivered nor any particular house allotted to him. The Respondent therefore filed a complaint before the District Forum.

4. While the matter was pending before the District Forum the Respondent was given an option to take a house in Govindpuram HIG Duplex at an increased price of Rs. 6,15,000/-. The Respondent could not afford the increased price and therefore was not willing to take the house.

5 The District Forum directed refund of all amounts with interest at the rate of 18% p.a. The State Forum dismissed the Appeal with costs of Rs. 2,000/-. The National Forum also dismissed the Revision.

6. In respect of Karpuripuram Scheme, this Court has, in its Order in the case of Ghaziabad Development Authority vs. Balbir Singh (supra), held as follows:

"21. In a scheme known as "Karpuripuram Scheme" plots were allotted, monies collected. However, thereafter the Scheme was cancelled. In some of the matters we have seen that the District Forum has recorded that the authority could give no explanation as to why the Scheme was cancelled. Before us some sort of explanation is sought to be given. In our view, irrespective of whether there was genuine reason to cancel or not, the monies must be returned with interest at the rate of 18%. We say so because it is clear that even if the body has not already floated another scheme on the same land it is clear that the body is going to derive great profit from this land and therefore compensating the allottee with interest at 18% per annum is just and fair.

22. In Civil Appeal No. 7224 of 2002 the respondent had applied for a house in a scheme floated in 1992. He had paid the entire cost. He had been allotted a flat and issued a reservation letter. Yet no possession was given. Thereafter, in 1996 the respondent was informed that for unavoidable reasons the house has been allotted to somebody else and if he desires, he can obtain an alternate flat at a much higher price. This, therefore, is also a case where there is absolutely no justifiable reason why the party has not been delivered