The obligation to fulfill terms of a sale agreement within the stipulated time period, regardless of the mortgage status of the property, and the responsibility to inform the other party of any changes in the agreement.

ORDER

Noushad Ali, President. - The opposite party-builder has filed this appeal directed against the order dated 29.1.2016 in C.C. No. 43 of 2014 passed by the District Consumer Forum, Vizianagaram whereby he has been directed to refund to the respondent the sale consideration of Rs. 8,61,000 received by him as consideration towards the sale of a flat along with interest at 24% per annum from 17.7.2010 till payment. The Forum has also directed to pay a sum of Rs. 10,000 towards damages and Rs. 1,000 as costs.

2. The brief facts to the extent relevant to this appeal are that both parties entered into Ex. A 1 agreement dated 8.7.2010 for the sale of the schedule Flat bearing No. B 1-206 situated in Block B 1 in the 2nd Floor with a plinth area of 583 square feet and common area of 247 square feet. On the date of agreement the respondent paid a sum of Rs. 1,00,000 and the balance was to be paid in five instalments depending upon the stage of construction, the last instalment of Rs. 2,61,000 falling on 15.7.2011. However admittedly the respondent paid the entire consideration on 17.7.2010 i.e., within nine days of the agreement. The respondent thus completed his obligation under the agreement in so far as the payment of consideration is concerned.

3. Under Clause 4 of the agreement the flat which was under mortgage to the Visakhapatnam Urban Development Authority (VUDA), it was agreed that the appellant would obtain clearance and execute the sale deed within two years period.

4. In as much as the appellant did not execute the sale deed by obtaining clearance from Visakhapatnam Urban Development Authority (VUDA), the respondent addressed Ex. A 3 and A 5 notices dated 3.10.2012 and 15.3.2014 respectively calling upon the appellant to not only get the mortgage redeemed but also register the property. In as much as the transaction has been delayed the respondent demanded payment of interest also at the rate of 24% from 17.7.2010. The appellant having received the same did not give any response to the letters. The respondent therefore approached the Forum and filed Exs. A 1 to A 8 in support of his contention.

5. The appellant contested the complaint mainly contending that the flat in question was not under mortgage and that the respondent was not prepared to bear the stamp and registration charges and was insisting to bear only Rs. 100 by relying on the stamp duty exemption given by the government under G.O. Ms. No. 589 dated 25.9.2009 and that he was always ready and willing to register the property. The appellant relied on Exs. B 1 to B 5 documents.

6. In the light of the controversy regarding mortgage of the property, Exs. X 1 and X 2 were got marked through the Visakhapatnam Urban Development Authority (VUDA).

7. The Forum after examining the entire evidence on record particularly Ex. X 2 VUDA plan held the view that the flat in question was not given in mortgage to VUDA. The forum came to the conclusion that the appellant did not come forward for registering the property even after receiving Exs. A 3 and A 5 letters. The Forum also found that all amenities as agreed in Ex. A1 agreement were not proved to have been provided. As such the Forum allowed the complaint,

8. In this appeal Sri M. Hari Babu firstly contended that the Forum committed an error in holding that the property was not under mortgage. By relying on Ex. B 1 encumbrance certificate and Ex. X 2 xerox copy of mortgage details, he contended that when the property was not in mortgage the question of getting it redeemed does not arise.

9. On the contrary Mr. S. Appa Rao Babu, Counsel for the respondent argued that as on the date of agreement the flat was very much under mortgage and the same clearly reflected under the agreement. The Counsel further argued that as disclosed under Exs. A 7 and A 8 the property was earmarked for mortgage and as such it is the duty of the appellant to get the same redeemed.

10. We have considered the said contentions and perused the docume