ORISSA STATE CONSUMER DISPUTES REDRESSAL COMMISSION
A.K. Samantaray, President, Subash Mahtab and Basanti Devi, Members
ORISSA STATE HOUSING BOARD - Appellant
Versus
RAMA CHANDRA CHOUDHURY - Respondent
Appeal Nos. 149 and 264 of 2001
Decided on : 29-07-2009
CONSUMER PROTECTION - HOUSING - ESCALATION OF COST - JURISDICTION OF CONSUMER FORA - PRICING DISPUTE - DEFICIENCY IN SERVICE - DELAY IN DELIVERY OF POSSESSION - RECTIFICATION OF DEFECTS - COMPENSATION - MAINTAINABILITY OF COMPLAINT - CONSUMER PROTECTION ACT, 1986.
Fact of the Case:
The complainant, Ramachandra Choudhury, filed a consumer complaint against the Orissa State Housing Board (OSH) alleging deficiency in service in the construction and delivery of a house allotted to him under the Self Financing Scheme. The complainant alleged that the OSH had arbitrarily enhanced the cost of the house after the stipulated date of payment of the final installment, delayed the delivery of possession by three years, and charged interest at 15% per annum on the delayed payment of installments. The complainant also alleged that the OSH had failed to rectify defects in the house despite repeated requests.
Finding of the Court:
The District Forum allowed the complaint and directed the OSH to refund the escalated price of Rs. 47,487, pay interest at 15% per annum on the deposited amount from 1.1.1991 to 1.3.1993, and pay compensation of Rs. 55,100 for the cost of rectification/replacement of defects. The OSH filed an appeal challenging the maintainability of the complaint and the order of the District Forum. The complainant filed a cross-appeal seeking interest on the escalation cost and compensation for the delay in delivery of possession.
Issues: 1. Whether the Consumer Fora has jurisdiction to entertain a complaint regarding the pricing of a house constructed under a project? 2. Whether there was deficiency in service on the part of the OSH in escalating the cost of the house, delaying the delivery of possession, and failing to rectify defects? 3. Whether the complainant is entitled to compensation for the delay in delivery of possession and the cost of rectification of defects?
Ratio Decidendi: 1. The Consumer Fora cannot go into pricing disputes of flats or houses. Interest charged also includes the price of the house leading to escalation. Therefore, the District Forum erred in entering into the dispute regarding pricing. 2. The OSH had taken all possible steps required for completion of the project and had explained the situation to the complainant. The OSH had also rectified the defects pointed out by the complainant after he took possession of the house. Therefore, there was no deficiency in service on the part of the OSH. 3. The complainant was not entitled to compensation for the delay in delivery of possession and the cost of rectification of defects since he had taken possession of the house in perfect condition and had not raised any legitimate ground for computation of the compensation.
Final Decision: The appeal filed by the OSH was allowed, the order of the District Forum was set aside, and the consumer complaint was dismissed. The cross-appeal filed by the complainant was dismissed.
ORDER
A.K. Samantaray, President - These two appeals arise out of the common judgment and order dated 29.12.2000 passed by the District Forum, Khurda at Bhubaneswar in C.D. Case No. 26 of 1994 and 10 other C.D. cases filed against (1) Secretary to Government, Housing and Urban Development Department, Orissa Secretariat, Bhubaneswar, and (2) Secretary, Orissa State Housing Board, A/32, Kharavelanagar, Bhubaneswar. In the present appeals, we are only concerned with C.D. Case No. 26 of 1994 filed by the complainant Ramachandra Choudhury. By the impugned order, the District Forum allowed the consumer complaint on contest against opposite party No. 2 and ex parte against opposite party No. l with cost of Rs. 1,000 to be paid by the opposite parties to the complainant. It was further directed that the complainant is entitled to refund of the escalated price of Rs. 47,487, if already paid, and not required to pay the same, if not paid. The opposite parties were directed to pay interest at the rate of 15% per annum on the deposited amount with effect from 1.1.1991 till 1.3.1993. The entire amount along with interest and cost was directed to be paid within 30 days from the date of receipt of copy of the order, failing which the complainant would recover the same in accordance with law. Assailing the said order, opposite party No. 2, i.e., the Housing Board, has filed CD Appeal No. 149 of 2001. The complainant has, however, filed CD Appeal No. 264 of 2001 for a direction for payment of interest at the rate of 15% per annum on the escalation cost of Rs. 47,487 as well as interest of Rs. 13,657 paid thereon up to the date of actual refund. Prayer has also been made to set aside the impugned order so far as it relates to inspection of house and rectification of defects by respondent No. 2. Further prayer has also been made for award of compensation of Rs. 55,100 to be paid by opposite party No. 2 towards cost of rectification/replacement of defects.
2. Since both the appeals arise out of the same judgment and order, we have heard them together and dispose them of by this common order.
3. Complainant Ramachandra Choudhury filed the aforementioned C.D. case alleging that he had made initial deposit of Rs. 25,000 pursuant to the advertisement made by opposite party No. 2 Housing Board and provisional allotment of a house under the Self Financing Scheme at Chandrasekharpur, Bhubaneswar, bearing number HIG-114 was made in his favour. Final allotment order containing the detailed terms and conditions of allotment was also made in his name. The estimated cost of the house was Rs. 2,50,000 as per the advertisement, which was duly confirmed in the final allotment order, and the expected date of delivery of possession of the house was mentioned to be by December, 1989. But, opposite party No. 2-Housing Board arbitrarily enhanced the cost of the project after the stipulated date of payment of final instalment on 30.6.1990 and also delayed the delivery of possession of the house to the complainant by three years in spite of requests and correspondences made by the complainant. In spite of the delay caused by opposite party No. 2 in the matter of completion of the project, it arbitrarily and illegally charged interest at the rate of 15% per annum in case of delayed payment of instalments. On 30.4.1990, opposite party No. 2 intimated the complainant regarding escalation of the cost of the house from 2.5 lakh to Rs. 3.00 lakh due to escalation of price of different building materials and labour charges without giving the detailed particulars of escalation and revised the estimate. The complainant raised protest to such escalation. Opposite party No. 2 Housing Board in its letter dated 1.10.1990 intimated the complainant for giving delivery of possession of the house by the end of March, 1991 without mentioning the cause of delay or giving any justification for escalation of the price. The Housing Board, however, took some excuses for the delay in constructi
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