Compensation is warranted for delays in possession delivery, with interest applicable from the contractual date.

1. The complainant / respondent was allotted a residential flat in a project namely
Sushma Crescent' which the appellant was to develop in Gazipur, Zirakpur. The allotment was made vide letter dated 5.11.2011. The allotment was followed by execution of an agreement between the parties on 23.12.2011. As per Clause 15 of the agreement executed between the parties, the possession of the allotted flat was to be delivered to the complainant within 36 months of the execution of the agreement meaning thereby that the possession ought to have been delivered by 23.12.2014. A grace period of six months was also available to the appellant for delivering possession and therefore, the appellant could have delivered possession of the allotted flat by 23.6.2015. The possession however, was offered to the complainant on 18.6.2018 and was eventually taken on 17.8.2018. The agreement between the parties envisaged payment of compensation @ Rs.5 per sq. ft. per month, for the period the possession was delayed and the said compensation was paid to the complainant before the delivery of possession. After taking possession of the allotted flat, the complainant approached the concerned State Commission by way of a Consumer Complaint seeking compensation for the period the possession was delayed.

2. The complaint was resisted by the appellant on several grounds which may not be relevant for the purpose of deciding this appeal, only a limited notice restricted to the quantum of compensation having been issued to the respondent / complainant. The State Commission, vide impugned order dated 5.3.2020, directed as under:
1. To pay compensation, by way of interest @ 9% p.a., on the deposited amount (Rs. 61,88,000), to the complainant, from the due date i.e. 22.6.2015 till possession was actually delivered to the complainant i.e. 17.8.2018, after adjusting the amount of Rs.4,18,803 already paid as compensation by the Opposite Parties to the complainant, within 45 days, from the date of receipt of a certified copy of this order, failing which, the said amount shall carry penal interest @ 12% p.a. instead of 9% p.a., from the date of default, till realization.
2. The Opposite Parties are directed to pay compensation, in the sum of Rs.1,00,000 on account of mental agony and physical harassment, caused to the complainant, within 45 days from the date of receipt of a certified copy of this order, failing which, the same shall carry interest @ 12% p.a. from the date of filing the complaint till realization.
3. The Opposite Parties are directed to pay cost of litigation, to the tune of Rs.45,000 (as prayed for) to the complainant, within 45 days from the date of receipt of a certified copy of this order, failing which, the same shall also carry interest @ 12% p.a. from the date of filing the complaint till realization.

3. Being aggrieved from the order passed by the State Commission, the appellant approached this Commission by way of this appeal. Vide its order dated 31.7.2010, this Commission issued notice limited to the quantum of compensation to the complainant / respondent. Therefore, I have heard the learned Counsel for the parties on quantum of compensation.

4. The learned Counsel for the appellant has drawn my attention to the following endorsement made by the complainant while receiving possession of the flat on 4.9.2018 and has submitted that the complainant, by way of the said endorsement, had restricted his claim only to the interest on the compensation paid to him by the appellant for the period the possession had been delayed and therefore, the additional compensation if any, to the complainant cannot exceed the interest component on the contractual compensation already paid to him by the appellant.
"This set