The court found no basis for modifying the interest rate and additional costs due to insufficient grounds and lack of contractual entitlement for increased interest on delayed possession.

JUDGMENT :

GURVINDER SINGH GILL, J.

1. The petitioners - Balbir Singh and Sunita Punia (allottees) seek modification of order dated 20.3.2024 (Annexure P-28) passed by National Consumer Disputes Redressal Commission (hereinafter referred to as “the NCDRC”) so as to seek increase in rate of interest as awarded from 9% p.a. to 18% p.a. for delayed possession of the flat in question. Another prayer made in the instant petition is that respondents No.3 to 5 i.e. the builders/developers be burdened with recurring cost to be paid to the petitioners as had been imposed by this Court in CWP-14082-2024.

2. The petitioners had applied for allotment of a flat in ‘Apartment D-2 in Tower/Block-D, Casa Homes’ situated at Kharar – Landran Road, Sector - 115 Mohali, which was allotted to them vide allotment letter dated 7.4.2018 (Annexure P-2), however, despite the petitioners having made requisite payments they were not given possession of the same constraining them to approach State Consumer Disputes Redressal Commission (hereinafter referred to as “the SCDRC”), which accepted the complaint filed by the petitioners under Section 17 (1)(a)(i) of Consumer Protection Act vide its award dated 28.2.2022 (Annexure P-27). The operative portion of the said award is reproduced herein-under:

“13. Consequently, we allow the complaint of the complainants against Ops No.1-3 and dismiss qua OP No.4-Bank, as Bank is a performa party in this case and issue the following directions to Ops No.1-3:

i. to deliver the possession with occupation/completition certificate of the apartment/flat, in question to the complainants after removing the above noted defects/discrepancies and complainants are directed to pay 10% remaining amount of basic sale price.

OR If Ops No.1-3 fail to deliver the possession of the apartment/flat after removing the defects and after issuing completion/occupancy certificate then they are directed to refund the amount of Rs.36,79,200/- alongwith interest @ 6%

per annum, w.e.f. the dates of payments till realization.

ii. to pay an amount of Rs.50,000/- as compensation for causing harassment and mental agony.

iii. to pay an amount of Rs.5,000/- as litigation expenses. ”

3. The petitioners, however, not being fully satisfied filed an appeal before the NCDRC, which slightly modified the order passed by the SCDRC vide its award dated 20.3.2024 (Annexure P-28). The operative portion of the said award is reproduced herein-under:

“15. In view of the arguments above, we see merit, in the impugned order of the State Commission. The impugned order is liable to be upheld with certain modifications. Consequently, the impugned order is affirmed with the modifications as below:

(i) the Respondent shall comply. with the direction of the State Commission to offer possession of the flat in question within 45 days of this order and hand over possession of the flat within 45 days thereafter;

(ii) the Appellants shall make the payment of the final installment of 10% dues along with other statutory and other charges payable at the time of possession within 30 days of receipt of such a demand being made by the Respondent who shall also execute the Sale Deed and Deed-of Conveyance;

(iii) the Respondent shall compensate the Appellant for the delay in handing over possession @ 6% p.a. simple interest on the deposited amount from the extended date of promised possession i.e. 31.07.2018 till the date of offer of possession along with the Occupation Certificate within 8 weeks falling which it shall, attract a penal rate of interest of 9%.p.a.

(iv) Respondents shall also pay the litigation expenses of Rs. 25,000/- to the Appellants.”

4. Respondent No.3 - Future City Developers Private Limited (the developer) a