SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2023 Supreme(P&H) 3021

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
VINOD S. BHARDWAJ, J.
Shashi Toteja – Petitioner
Versus
Permanent Lok Adalat & Anr. – Respondent
CWP NO. 6393 of 2017
Decided On : 20-01-2023

Advocates Appeared:
Ms. Sushma Verma, Advocate; For the Petitioner
Mr. R.D. Gupta, Advocate for Respondents No. 2 & 3.

Headnote:(A) Interest Act, 1978 - Section 3(3)(ii) - Haryana Co-operative Societies Act, 1984 - Section 128 - Haryana Co-operative Societies Rules, 1989 - Claims for interest related to refund of membership fee - The Permanent Lok Adalat awarded interest only from the date of application seeking refund, not from date of deposit. Statutory provisions prohibit interest on refunds prior to application - Discretion of court to award interest post-litigation affirmed. (Paras 11, 15, 20)

(B) Legal Precedents - Court may allow interest post-institution of suit, but not pre-suit unless equity applies. Case law indicates entitlement to post-decree interest can disrupt contractual stipulations. (Paras 16, 18)

(C) Jurisdiction and Authority - Permanent Lok Adalat has authority to adjudicate and award interest for debt recovery disputes under legal service provisions. (Paras 5, 8, 14)

Facts of the case:
The petitioner, a member of a co-operative society, sought a plot allotment refund after 20 years without delivery, claiming that the Permanent Lok Adalat erred in not awarding interest from the deposit date.

Findings of Court:
The Permanent Lok Adalat’s decision to award interest only from the application for refund was upheld, citing statutory limitations against pre-application interest.

Issues: Whether the statutory rules preclude interest on refunds prior to application submission and whether interest can be awarded post-litigation despite such rules.

Ratio Decidendi: The court concluded that while pre-application interest is barred by statute, interest may be awarded once litigation starts, emphasizing the court's discretion in applying interest under certain circumstances.

Result: The Permanent Lok Adalat's award affirmed.

Table of Content
1. challenge to permanent lok adalat's award. (Para 1 , 2 , 3 , 4 , 5)
2. petitioner's contention on interest entitlement. (Para 10 , 11)
3. response from respondent-society on legal provisions. (Para 12 , 13 , 14)
4. court's analysis regarding interest entitlement. (Para 15 , 16 , 17)
5. conclusions on the correctness of the permanent lok adalat award. (Para 18 , 19 , 20)
6. final directive on deposit of awarded amount. (Para 21)

JUDGMENT

Vinod S. Bhardwaj, J. (Oral)

The present petition raises a challenge to the award dated 26.03.2015(Annexure P-8) passed by the Permanent Lok Adalat, Public Utility Services, Gurgaon to the extent whereby the Permanent Lok Adalat has awarded interest to the petitioner w.e.f. 14.11.2011 till the date of actual payments.

2. Briefly summarized, the facts of the present case are that the petitioner-applicant became a member of the respondent no.2-society on 10.08.1995 after depositing a membership fee of Rs.1,93,750/- through cheque No. 427681 drawn on Punjab National Bank, Shahdara, Delhi for allotment of a plot No.1585 measuring 250 square yards. Membership No. 7443 (wrongly mentioned as 7442 in the impugned award) was allotted to the petitioner and a share certificate of Rs. 100 was issued to her.

3. Eventually, plot No. 1585 measuring 250 sq. yards was stated to have been allotted to the petitioner-applicant, however, possession of plot was ever handed over.

4. The petitioner-applicant contends that the managing committee of the society had been put under suspension and that management had been handed over to the Board of Administrators. Claims from the members were invited whereupon the petitioner submitted her claim seeking delivery of possession of the plot and for execution and registration of deed of conveyance in relation to plot No. 1585 (supra).

5. The needful having not been done, an application under Section 22 (C) of the Legal Services Authority Act, 1987 was preferred before the Permanent Lok Adalat (Public Utility Services) Gurgaon.

6. The respondent-society filed its reply and stated that the claim in question could not be entertained by the Permanent Lok Adalat as it has been barred under Section 128 of the Haryana Co-operative Societies, Act, 1984.

7. No other dispute on the merits of the deposit of the amount, membership of the petitioner etc. were, however, raised. Efforts of conciliation were made by the Permanent Lok Adalat (Public Utility Services) and since the said efforts failed to arrive at an amicable resolution, adjudication was undertaken in terms of section 22 (C) (8) of the Legal Services Authorities Act, 1987.

8. Upon consideration of the rival submissions advanced by the parties, the Permanent Lok Adalat (Public Utility Services) Gurgaon allowed the said application and directed the respondent-society to refund the amount of Rs.1,93,750/- deposited by the petitioner-applicant towards purchase of the plot against her membership No. 7443 along with interest @ 9 % p.a. from the date of filling of the application before the Permanent Lok Adalat (Public Utility Services) Gurugram i.e. 14.11.2011 till the date of actual disbursement.

9. Aggrieved thereof, the present petition has been preferred.

10. Learned counsel appearing on behalf of the petitioner contends that the Permanent Lok Adalat made an error in awarding interest w.e.f. 14.11.2011 till the date of actual disbursement and interest ought to have been awarded with effect from the date when the applicant-petitioner deposited the above said amount with the respondents i.e. 10.08.1995.

11. She submits that the petitioner has been subjected to much harassment and that money has remained blocked for no reason.

12. Learned counsel appearing on behalf of the respondent-society however submits that there is no error in the order passed by the Permanent Lok Adalat (Public Utility Services) to the extent whereby the interest for the period prior to submission of application seeking refund has not been awarded

                                                                                                  Click Here to Read the rest of this document
                                                                                                  1
                                                                                                  2
                                                                                                  3
                                                                                                  4
                                                                                                  5
                                                                                                  6
                                                                                                  7
                                                                                                  8
                                                                                                  9
                                                                                                  10
                                                                                                  11
                                                                                                  SupremeToday Portrait Ad
                                                                                                  supreme today icon
                                                                                                  logo-black

                                                                                                  An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

                                                                                                  Please visit our Training & Support
                                                                                                  Center or Contact Us for assistance

                                                                                                  qr

                                                                                                  Scan Me!

                                                                                                  India’s Legal research and Law Firm App, Download now!

                                                                                                  For Daily Legal Updates, Join us on :

                                                                                                  whatsapp-icon Back to top