Interest at the rate of 18% per annum was justified for non-allotment of plots of land.

Civil Appeal arising out of SLP (C) 22736 of 2002

H.K. Sema, J.—Leave granted.

The challenge in this appeal is to the order dated 26.4.2002 passed by the National Consumer Disputes Redressal Commission (in short ‘the Commission’) in Revision Petition No. 1460 of 2000.

2. Briefly stated, the facts are as follows:

The respondent authority, namely the Ghaziabad Development Authority, floated a Scheme called Karpoori Puram Scheme for allotment of housing plots under the Self Financing Scheme. Pursuant thereto, the appellant applied for a plot of land measuring an area of 90 sq. mtrs. This was sometime in the month of July, 1991. On 30th July, 1994, the appellant deposited a sum of Rs. 96,948/- as total and final payment (i.e. Rs. 81,020/- as actual cost and Rs. 15,948/- as interest on delayed payment). The allotment of the plot was the sometime in 1997. However, the land in question could not be allotted to the appellant on the ground that the Karpoori Puram Scheme had been cancelled and a new scheme had been floated by the name of Swarn Jayanti Puram. Aggrieved thereby, the appellant filed complaint to the District Forum, State Commission and National Commission, which after considering the facts of the case, inter alia, directed refund of the amount along with interest @ 18% p.a.

3. The grievance of the appellant is that in the guise of the cancellation of Karpoori Puram Scheme another scheme was floated styled as Swarn Jayant Puram over the same plot of land with a view to deprive the innocent citizens of their due share for allotment of plot in their favour for which they had deposited the amount and had legitimate expectations of getting plot of land in their favour. According to the appellant, a fraudulent practice has been played by the respondent upon the innocent law abiding citizens, thereby earning wrongful gain at the cost of wrongful loss to the helpless and innocent citizens.

4. In fact, in an identical case, cancellation of Karpoori Puram Scheme had been considered by this Court in the case of Ghaziabad Development Authority v. Balbir Singh, II (2004) CPJ 12 (SC)=(2004) 5 SCC 65 wherein this Court had deprecated the manner in which the statutory authority had dealt with the public interest as sought to be done in the present case. This Court in the facts and circumstances of that case had held that the grant of interest @ 18% p. a. by way of damages and compensation was quite justified. In paragraph 21 of Balbir Singh’s case (supra), this Court held as under:

“21. In a scheme known as “Karpuri-puram 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.”

5. In our view, therefore, having regard the facts and circumstances of the case in hand are squarely covered by the decision of this Court in Balbir Singh (supra). In this view of the matter, we are of the view that nothing remains to be considered further, though we deprecate the conduct of the concerned authority, as already pointed out.

6. For the reasons aforestated, the appeal stands dismissed with no order as to costs.

Civil Appeal No. 549 of 2003

7. This appeal is directed against the judgment and order dated 28.5.2002 passed by the National Consumer Disputes Redressal Commission (hereinafter ‘the Commission’) in Revision Petition No. 460 of 1999.

8. Briefly stated, the facts are as follows:

A Scheme known as Go