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2004 Supreme(SC) 1150

SUPREME COURT OF INDIA
S.N.Variava : A.K.Mathur
Haryana Urban Development Authority
Versus
Shanti Devi
Case No. : 5872 of 2002
Date of Decision : 9/24/04
Advocates Appeared: Jai Prakash Dhanda

Headnote:

A. Consumer Protection Act 1986, - Deficiency in service - Allottee paid substantial amounts but possession not delivered - National Commission erred in awarding 18% interest on deposited amount- Appellant not entitled to interest till the date of offer of possession- Order of National Commission of each case [Paras 1,4and 7]

B. Consumer Protection Act 1986- Demand and collection of extra amount-As the dispute was subjudice the appellants were bound to put before the Court/Forum not just their defence but also their claim/counterclaim, if any- Without permission of Court, the appellants could not set at naught awards of the Forum by raising, outside Court, demands against the Respondents- Appellant directed refund the extra amount to the respondent with 15% interest- TDS recovered also directed to be refunded to respondent with interest [Paras 7, 8 and 9]

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 was allotted a plot bearing No. 1489, Sector-14(P), Hisar. The Respondent paid substantial amounts but the possession was not delivered. The Respondent thus filed a complaint. On these facts, the District Forum awarded interest @ 15% p.a. on the entire deposited amount from the date of re-allotment till offer of possession.

4. 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 allowed 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 in all matters irrespective of the facts of that case. It must, on facts of a case, award compensation/damage under appropriate heads if it comes to the conclusion that such award is justified/necessary. Accordingly the Order of the National Commission is set aside.

5. We are informed that the Appellants have offered possession on 24th February 1998. Counsel had no instructions whether Respondent had taken possession or not. Undoubtedly the Respondent will be entitled to take possession, if he has not already taken possession. Appellants will deliver possession without demanding any further or other amounts.

6. We are informed that the Respondent has paid a sum of Rs.1,64,810/-. We however find from the copy of the allotment letter, filed in this Court along with the affidavit of the Estate Officer dated 29th July 200, that only a sum of Rs.1,23,700/- was payable. As per the affidavit a sum of Rs.89,126/- being interest payable to the Respondent, as per the Orders mentioned hereinabove, has been paid to the Respondent on 25th July 2004.

7. Counsel had no instructions and could not explain what were the amounts due from the Respondent. As stated above Respondent has paid more than what he was bound to pay. Also neither before the District Forum or the State Forum or the National Commission and even in the Appeal Memo before this Court is there a claim that Appel






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