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2008 Supreme(SC) 1578

Supreme Court of India
THE HONOURABLE MR. JUSTICE R.V. RAVEENDRAN & THE HONOURABLE MR. JUSTICE AFTAB ALAM
Haryana Urban Development Authority
Versus
Raje Ram
Civil Appeal No. 2381 of 2003 with C.A. No. 2382 of 2003 and C.A. No. 3412 of 2003
Decided on : 23-10-2008

Advocates appeared:
For the Appellant:Satinder S. Gulati, Dr. Kailash Chand and Mrs. Kamaldeep Gulati, Advocates. For the Respondent:Ms. Jaspreet Gogia, Advocate.

Headnote:Administration of Justice – Judicial review – Respondents re-allottees of plots – Not paying full amount – Fully aware about possible delay in possession – Having benefit of escalation in price of land – Not entitled to interest. (Para 7)

       Facts of the case:

       The respondents are re-allottees of plots by HUDA.

       Due to delay in delivering possession they claimed interest on the amounts paid which was allowed by the District Forum. The State Commission upheld the grant pf interest by reduced the rate of interest. The National Commission also agreed.

       Finding of the Court:

       Respondents are not entitled to interest .

       Result:

       Appeals allowed.

Judgment :

These appeals by special leave challenge three identical orders of the National Consumer Disputes Redressal Commission (`National Commission for short).

CA No. 2381/2003 [HUDA vs. Raje Ram]

2. Plot No.545, Sector 14, Hissar was allotted to Madanlal on 12.12.1986. The allottee had deposited 25% of the cost of the plot. On 15.1.1993, the appellant notified the revision of price from Rs.224.90 to Rs.301.70 per sq. yard and gave an option to the allottee to either accept the revision or receive back the initial deposit with interest at 10% per annum. The allottee and respondent sought transfer of allotment to the name of respondent. The request was accepted and the appellant re-allotted the plot to the respondent vide letter dated 15.3.1994 subject to payment of extension fee. Aggrieved by the non-delivery of possession of the allotted plot, respondent approached the District Consumer Disputes Redressal Forum, Hissar in the year 1997. The appellant contested the claim on several grounds. The appellant also offered possession of the plot on 11.3.1998. The District Forum disposed of the complaint by order dated 15.4.1998, with a direction to the appellant to pay interest at the rate of 18% per annum to the respondent on the amounts deposited, from the date of deposit till the date of offer of possession. The appellant challenged the award of interest by filing an appeal before the State Commission. The State Commission did not interfere with the award of interest, but reduced the rate of interest from 18% per annum to 15% per annum, by order dated 5.4.1999.

CA NO. 2382/2003 [HUDA vs. Atam Parkash]

3. Plot No.53, Sector 13P, Hissar was allotted to O.P. Rathee on 8.4.1986 and the allotment was transferred to one Sheela Devi. Possession of the plot was offered to her on 19.9.1993. On the request of the said Sheela Devi, the appellant re-allotted the plot to the respondent as per letter dated 16.6.1997 subject to payment of extension fee. Alleging that possession of the allotted plot was not delivered, respondent approached the District Consumer Disputes Redressal Forum, Hissar, in the year 1997. The appellant contested the claim. By letter dated 3.11.1997, the appellant also informed the respondents that possession of the plot had already been offered to the earlier allottee in the year 1993. The District Forum by order dated 14.6.1999 directed the appellant to pay interest at the rate of 15% per annum to the respondent on the deposit amount, commencing from the expiry of two years from the date of deposit till the date of fresh offer of possession. The District forum also directed that the appellant shall not charge interest on delayed instalments. The appellant challenged the award of interest by filing an appeal before the State Commission. The State Commission reduced the interest from 15% per annum to 12% per annum by its order dated 16.5.2000. It may be mentioned that even before the State Commission decided the matter, the respondent took possession of the plot on 21.3.2000.

CA No. 3413/2003 [HUDA vs. Sunil Kumar]

4. Plot No.1051, Sector 14-P, Hissar was allotted to one Anjani Kumar on 21.3.1986. By letter dated 5.8.1989, the appellant offered to refund the deposit if he did not want to wait till the development was completed. In 1993, the appellant notified the revision of price which was not paid. The original allottee sought transfer of allotment to the name of respondent and the appellant permitted the transfer on 9.7.1996 and re-allotted the plot to the respondent by re-allotment letter no.14662 dated 21.8.1996 subject to payment of extension fee. Alleging non-delivery of possession of the allotted plot, respondent filed Complaint no.451/1997 before the District Consumer Disputes Redressal Forum, Hissar, seeking interest on the amounts deposited, from the date of payment, among other reliefs. The appellant contested the claim. The District Forum by order dated 15.4.1998 directed the appellant to pay interest at t






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