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SUBHASH CHANDRA, SADHNA SHANKER
Vice Chairman, Lucknow Development Authority – Appellant
Versus
Alok Srivastava – Respondent
ORDER
Subhash Chandra, Presiding Member—This appeal assails the order dated 28.12.2020 in Consumer Case no. 165 of 2000 of the Uttar Pradesh State Consumer Disputes Redressal Commission, Lucknow (in short, ‘the State Commission’) holding that there are reasonable and sufficient grounds to establish deficiency in service on the part of the appellant and therefore, directing payment of Rs.6,82,500/- with 10% interest from the date of filing till realisation as compensation for construction, Rs.10 lakhs for harassment and mental agony within 3 months or with 10% interest till payment and litigation cost of Rs.10,000/-.
2. This order will also dispose of FA no. 654 of 2021 arising from the order of the State Commission in RA no. 05 of 2021 by which the RA had been allowed with regard to return of the deposited money through payment by cheque. For the sake of convenience FA no. 618 of 2021 is taken as the lead case.
3. In brief, the facts of the case are that the appellant, which is a Development Authority engaged in the development of housing projects on behalf of the Government of UP had, in a scheme announced by it in 1990, allotted an MIG Duplex House no. 5/1184, Viram Khand-5, Gomt
Important Points(1) Cancellation – It is notable that the cancellation was done without even a letter setting out the reasons and/or steps taken by it to suitably rectify the situation.(2) Refund – T....
Allotment of flat – Delay – Compensation cannot be granted in multiple heads.
Delay in allotment of flat – Deficiency in service – Failure to provide completion/occupation certificate by Development Authority.
(1) Development Authority - The development authority is a government authority and is required and expected to function in accordance with the prescribed administrative and financial rules, its acco....
(1) Possession - If the developer fails to deliver possession of the allotted plot/flat within the stipulated time, the allottee is under no obligation to accept an alternate plot.(2) Interest - When....
Failure to deliver possession constitutes deficiency in service, validating consumer refunds with interest.
“Since the possession of subject flats were not delivered within the stipulated time, allottee held entitled for refund of amount deposited with interest.”
IMPORANT POINT Paper Possession – without obtaining completion certificate, offering possession is not a valid/legal possession and is only a paper-possession.
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