IMPORTANT POINT
“A builder company cannot retain the amount deposited by a consumer indefinitely.”

ORDER

Dinesh Singh, Presiding Member.—This Appeal has been filed under Section 19 of The Consumer Protection Act, 1986 (the ‘Act 1986’) challenging the Order dated 29.05.2015 in C. C. No. 48 of 2015 passed by the State Consumer Disputes Redressal Commission, U. T. Chandigarh (the ‘State Commission’).

2. Heard arguments from Mr. Aditya Narain, learned Counsel for the Appellant (the ‘Builder Co.’) and Mr. Sandeep Bhardwaj, learned Counsel for the Respondent (the ‘Complainant’).

Perused the material on record, including inter alia the impugned Order dated 29.05.2015 of the State Commission and the Memorandum of Appeal.

3. This relates to a builder-buyer dispute.

4. The State Commission vide its Order dated 29.05.2015 had partly accepted the Complaint.

The Award made by the State Commission vide its impugned Order dated 29.05.2015 reads as below:

28. For the reasons recorded above, the complaint is partly accepted, with costs, and the Opposite Parties are jointly and severally directed as under:-

(i) To refund the amount of Rs.38,77,854/-, to the complainant, alongwith interest @ 12% per annum, from the respective dates of deposits, till realization, within 45 days, from the date of receipt of a certified copy of this order.

(ii) To pay compensation, in the sum of Rs.1.50 lacs, for causing mental agony and physical harassment, to the complainant, within 45 days, from the date of receipt of a certified copy of this order.

(iii) To pay cost of litigation, to the tune of Rs.20,000/-, to the complainant.

(iv) LIC Housing Finance Limited, shall have the first charge on the amount ordered to be refunded, in favour of the complainant, to the extent it (amount) was found due to it against her (complainant).

(v) In case, the payment of amounts, mentioned in Clauses (i) and (ii), is not made, within the stipulated period, then the Opposite Parties, shall be liable to pay the amount mentioned in Clause (i) with interest @15% P.A., instead of 12% P.A., from the respective dates of deposits, till realization and interest @12% P.A., on the amount of compensation, mentioned in Clause (ii), from the date of filing the complaint, till realization, besides payment of costs, to the tune of Rs.20,000/.

5. Mr. Aditya Narain, learned Counsel for the Builder Co. submits that the Builder Co. is attempting a settlement with the Complainant, for which the Complainant has been called to its office. The Builder Co. is principally aggrieved with the rate of interest of 12% per annum (on the amount deposited by the Complainant) awarded by the State Commission. The Hon’ble Supreme Court is awarding interest at the rate of 6% per annum (related judgments of Hon’ble Supreme Court have not been filed by the Builder Co., nor the citations referred to during the submissions).

6. It is noted that the prayer made in the Memorandum of Appeal is for setting aside the impugned Order dated 29.05.2015 of the State Commission.

7. It is also noted that the State Commission has passed a well-appraised reasoned Order, it has aptly dealt with the issues and contentions raised by the Builder Co.

8. It is further noted that the Complainant paid a sum of Rs. 10,35,000/- as booking amount, after which the subject unit was allotted by the Builder Co. to the Complainant on 15.05.2007. The agreement was executed on 04.07.2007. The assured period of completion was two years, and not later than three years, from the date of execution of the agreement i.e. not later than 03.07.2010. The Complainant deposited in total an amount of Rs.38,77,854/- with the Builder Co. The Builder Co. was not in a position to offer possession of the subject unit (or the alternative unit thereafter allotted) to the Complainant till the date the State Commission made its Award i.e. till 29.05.2015.

On the one hand, the Builder Co. was not in a position to offer possession of the subject unit within the agreed and assured period of three years or within a reasonable period thence (reasonable period