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2004 Supreme(SC) 1494

Supreme Court Of India
D.M. DHARMADHIKARI AND H.K. SEMA, JJ.
HARYANA URBAN DEVELOPMENT AUTHORITY- Appellant
Versus
TILAK RAJ RANOA- Respondent
Civil Appeals No. 7822 of 20041 with No. 7823 of 2004,
Decided on December 1, 2004

Headnote:

Consumer Protection Act, 1986, Sections 14(1)(d), 18 and 22(1) - Civil Procedure Code, 1908, Section 34 - Contact Act, 1872, Section 73 - Allotment of plots - Delay in delivery of - Rate of Interest - District forum awarded interest at rate of 12% on interest @ 15%- National Commission still enhanced the interest to 185- Not proper- Interest @ 12 % already deposited upheld [Paras 4 and 5]

ORDER

1. Leave granted.

2. In these two appeals preferred by the Haryana Urban Development Authority, learned counsel appearing for the Authority submits that on the amount deposited for the plot allotted, the District Forum awarded interest at the rate of 12% which has been paid. The State Commission in appeal preferred by the allottee increased the rate of interest to 15%. The Authority then preferred a revision to the National Forum, which by relying upon its own decision in the case of Haryana Urban Development Authority v. Darsh Kumar1 increased the rate of interest to 18%. Aggrieved by the increase made by the National Forum in awarding the rate of interest, the Authority is before us in the SLP.

3. The respondents, though served, have chosen not to appear nor have they made any arrangement for their representation through counsel.

4. Our attention has been invited to a decision of this Court in the case of Ghaziabad Development Authority v. Balbir Singh2 to which one of us, namely, Justice H.K. Sema, is a party. In that case this Court disapproved the award of interest at flat rate of 18% granted by the National Forum by relying on Darsh Kumar case1 and held that without examining the facts and circumstances of each case, interest at flat rate of 18% cannot be granted.

5. Relying on the decision in Balbir Singh2 we allow these appeals and set aside the award of the State Forum and also the award of the National Forum as it is pointed out that in these appeals the allottees were not interested in obtaining the possession of the plots but are interested in refund of premium paid with interest. The rate of interest is, therefore, restricted to 12% per annum which has already been paid by the respondent allottees.

6. The appeals are allowed to the above extent. There shall be no order as to costs.

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