The main legal point established in the judgment is that the provisions of the scheme brochure, specifically Para 6.3(4), justified the deduction made by the Jhansi Development Authority in the case of cancellation of allotment after paying the first instalment.

Mr. D.D. Bahuguna, Member—This is an appeal filed by Jhansi Development Authority against the judgment and order dated 31.1.1994 passed by District Consumer Forum, Jhansi in Complaint Case No. 204/1991. Briefly stated the facts of the case are as follows :

2. The complainant, Sri Ramesh Chandra Pandey in response to a scheme launched by Jhansi Development Authority for allotment of plots and houses, applied for registration of plot in the Pichhori Scheme. The registration amount of Rs. 5,000/- was deposited and the first instalment of Rs. 20,000/- was paid on 15.5.1991. After depositing the first instalment the complainant expressed his inability to take the plot. The approximate cost of the plot was Rs. 78,550/-. When the complainant applied for refund of the amount deposited by him, the opposite party, Jhansi Development Authority deducted a sum of Rs. 5,239/- out of the total deposited amount of Rs. 25,000/- and this deduction was made on the basis of 16% interest per annum payable on the total value of the plot which was Rs. 78,550/-. The Plot No. B/M (2-20), after registration, was allotted to him through a draw of lot. Immediately after the intimation of allotment was given to the complainant on 15.5.1991, the first instalment of Rs. 20,000/- was deposited, but the complainant later-on for personal reasons informed the Authority that he is unable to take the plot. He, therefore, applied for refund of the entire money deposited but the Authority as stated above deducted a sum of Rs. 5,239/-. The complainant, therefore, lodged a claim before the learned District Forum for refund of Rs. 5,239/- wrongfully deducted by the opposite party alongwith interest with compensation of Rs. 5,000/- and cost of Rs. 500/- was also claimed.

3. The opposite party, Jhansi Development Authority, filed their written version before the District Forum concerned. The stand taken by the Authority was that as per rules of the scheme a deduction of Rs. 5,239/- was made out of the total amount deposited by the complainant of Rs. 25,000/-. The rules of the scheme provided that in case after allotment of the property a refund was demanded, then 16% interest was to be charged on the total value of the plot which was Rs. 78,550/-. It was denied by the opposite party that no development work had been done on the plot allotted to the complainant.

4. The District Consumer Forum, after hearing both the parties came to the conclusion that the opposite party should have deducted 20% of the registration amount which was Rs. 5,000/- and the rest amount of Rs. 20,000/- deposited by the complainant should have been returned to him. Therefore, the complainant was entitled to a refund of Rs. 24,000/- and the deduction of Rs. 4,239/- was against the rules. Therefore, there was deficiency of service on the part of Jhansi Development Authority. The Forum, therefore, allowed the claim of the complainant for Rs. 4,239/-, a compensation of Rs. 500/- and Rs. 100/- as cost. It was also ordered that in the event the opposite party does not comply with the order, the interest at the rate of 16% per annum was also payable on the above amount from 27.8.1991.

5. Aggrieved of this order, Jhansi Development Authority has come in appeal.

In the memo of appeal, Jhansi Development Authority has stated that Plot No. B/M (2-20) was allotted to the complainant through allotment letter dated 15.4.1991. The allotment was accepted by the complainant and the first instalment of Rs. 20,000/- was deposited by him. The registration booklet contains terms and conditions of allotment. As per terms and Condition No. 6.3 Para 4 there is a specific provision that in case an allottee, after allotment, wants to cancel his allotment, then 16% per annum interest has to be charged on the entire cost of the property so allotted and the balance amount has to be refunded. Since the complainant had deposited the first instalment and later-on requested for the cancellation of the allotment, the terms and c