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PUNJAB STATE CONSUMER DISPUTES REDRESSAL COMMISSION
S.N. Aggarwal, President, Jasbir Kapoor and Lt. Col. Darshan Singh, Members
GAGANDEEP SAREEN AND ANR. - Appellants
Versus
IMPROVEMENT TRUST AND ANR. - Respondents
First Appeal No. 1516 of 2004-
Decided on : 16-10-2008

Advocates Appeared:
Mr. Harish Goyal and Mr. Naresh Kaushal, Advocates, for the Appellant; Mr. Mukand Gupta, Advocate, for the Respondent

Legal heirs are not liable to pay transfer fee when inheriting property by natural succession.

Headnote:

Inheritance - Transfer Fee - Interest Rate - Sub-standard Material - Punjab Government Order 1998 - [Inheritance] - [Property Transfer] - [Punjab Government Order 1998] - The court discussed the entitlement of the respondents to recover transfer fee from the appellants, who inherited the property from their father. The court held that since the appellants became owners by natural succession, the transfer fee claimed by the respondents was not recoverable. The court also addressed the interest rate charged and the use of sub-standard material in the built-up house, awarding compensation to the appellants for sub-standard workmanship.

Fact of the Case:

Jagatpal Sareen purchased a house and passed away, leaving his sons as legal heirs. The sons requested the transfer of the house in their name, but the respondents demanded a transfer fee. The appellants also claimed compensation for sub-standard material used in the house.

Finding of the Court:

The court found that the appellants, as legal heirs, were not liable to pay the transfer fee and directed the respondents to accept and record the ownership of the house in favor of the appellants on an inheritance basis without demanding the transfer fee. The court also awarded compensation to the appellants for sub-standard workmanship.

Issues: Entitlement to transfer fee, interest rate, compensation for sub-standard material

Ratio Decidendi: The court held that the appellants, as legal heirs, were not liable to pay the transfer fee as they became owners by natural succession. The court also addressed the interest rate charged and awarded compensation for sub-standard workmanship.

Final Decision: The appeal was partly accepted, and the respondents were directed to accept and record the ownership of the house in favor of the appellants on an inheritance basis without demanding the transfer fee.

ORDER

S.N. Aggarwal, President - Jagatpal Sareen had purchased built-up House No. 60-C situated in Ranjit Avenue, Ropar from the respondents in the draw of lots held on 25.2.2000 for an amount of Rs. 6,38,000. He had made the payment of Rs. 58,000 at the spot and the remaining amount was paid in instalments. Said Jagatpal Sareen expired on 9.9.2002 leaving behind Gagandeep Sareen and Bharatdeep Sareen - appellants as his only legal heirs. The wife of Jagatpal Sareen had pre-deceased him. After the death of Jagatpal Sareen, the last instalment of Rs. 60,464 was deposited by the appellants. The appellants requested the respondents to transfer House No. 60-C situated in Ranjit Avenue, Ropar in their name as legal heirs of Jagatpal Sareen.

2. It was further pleaded that the respondents vide their letter dated 2.9.2003 demanded an amount of Rs. 31,900 from the appellants as transfer fee. The appellants requested respondents not to recover this amount as they are claiming the transfer of the house in their name as the legal heirs of their father Jagatpal Sareen. The appellants received another letter dated 22.12.2003 in which the demand of Rs. 31,900 was repeated. The respondent also claimed interest @ 18% per annum whereas they were entitled to recover interest @ 12% per annum.

3. It was also pleaded that house in question was not constructed as per the specifications and sub-standard material was used. As a result the appellants had spent an amount of Rs. 1 lac to make the house livable, Therefore, pleading deficiency on the part of the respondents, the appellants filed the complaint in the learned District Consumer Disputed Redressal Forum, Ropar (in short the District Forum ) for challenging the transfer fee, charging of higher rate of interest and for compensation for using sub-standard material in the construction of the house, interest and costs.

4. The respondents filed written reply. It was admitted that Jagatpal Sareen, father of the appellant had purchased built-up House No. 60-C situated in Ranjit Avenue, Ropar on 25.2.2000 for an amount of Rs. 6.38 lacs and he had made the payment of Rs. 58,000 at the spot and the remaining amount was payable in instalments. It was also admitted that Jagatpal Sareen died on 9.9.2002 leaving behind appellants as his legal heir and that Santosh Kumari wife of Jagatpal Sareen had pre-deceased him. It was also admitted that the last instalment of Rs. 60,464 was deposited by the appellants as the full and final instalment. It was pleaded that the flat in question was not transferred in favour of the appellants as they failed to deposit the transfer fee. It was admitted that the respondents have demanded an amount of Rs. 31,900 as transfer fee, which is being charged as per the Government order dated 22.11.2001 and 27.6.2003. It was also pleaded that the respondents had claimed interest only @ 12% and not at the rate of 18% per annum. It was denied if the sub-standard material was used in the construction of the house or if the appellants were entitled to any compensation on that account. Dismissal of the complaint was prayed.

5. Gagandeep Sareen proved his affidavit as Ex. C-1. The appellants also proved document Exs. C-2 to C-25.

6. On the other hand, the respondents proved affidavit of Sh. Ram Parkash Bali, Chairman as Ex. R-1. Respondents also proved the letter dated 4.4.2000 as Ex. R-2 and instructions dated 27.6.2003 as Ex. R-3.

7. After considering the pleadings of the parties and the affidavits/documents placed on the file by them, learned District Forum partly accepted the complaint with costs of Rs. 2,500 vide impugned order dated 5.10.2004 and directed the respondents to pay an amount of Rs. 5,579 to the appellants on account of sub-standard workmanship within 30 days, failing which interest was payable @ 9% per annum.

8. Hence, this appeal by the complainants.

9. The submission of the learned Counsel for the appellants was that since they have inherited the property from their father Jagat

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