The Complainant in a housing allotment case was bound to pay legally mandated enhanced compensation per the allotment agreement, with the Consumer Forum retaining jurisdiction despite arbitration clauses.

1. The present Complaint is filed by Army Welfare Housing Organization (AWHO) hereinafter referred to as "the Complainant". The Complainant is a Society registered under the Societies Registration Act, 1860 having its registered office at Rajaji Marg, New Delhi. The Complainant provides dwelling units to serving and retired Army personnel and their widows on "No Profit No Loss" basis.

2. The case of the Complainant is that they were allotted 5 acres land in Group Housing Plot No. 4 (GH - 4) in Sector 9, Ambala City by the Opposite Parties / Haryana Urban Development Authority (in short 'HUDA') vide allotment letter No. 21417 dated 8.7.1991, for Rs.1,58,48,000. Possession of the land was handed over on 8.2.1993. The Complainant made final payment to the Opposite Parties on 5.7.1996. The Opposite Parties, vide letter dated 8.1.1997, demanded an additional amount of Rs.50,97,990.78 on the ground of enhanced compensation pursuant to judgment dated 6.5.1992 of Ld. Additional District Judge, Ambala, which was allegedly deposited by the Opposite Parties in the Court. The Opposite Parties, never informed the Complainant till the last date of payment, i.e. 5.7.1996 that an additional amount was to be paid by the Complainant in terms of judgment dated 6.5.1992 of Learned Additional District Judge, Ambala. The Opposite Parties did not give any explanation as to why the order of the learned Additional District, Judge, Ambala City dated 6.5.1992 was suppressed from the Complainant. The Complainant, however, paid enhanced compensation as determined pursuant to a judgment / award dated 6.5.1992 passed by the District Judge, Ambala. The order of the District Judge, Ambala is dated 6.5.1992 and the Opposite Party made demand, vide letter dated 8.1.1997, after expiry of more than six years. Moreover, the compensation awarded by the District Judge, Ambala was much lesser than the demand made by the Opposite Parties. The Complainant sent legal notice dated 28.5.1997 to Opposite Parties seeking clarification of the highly inflated, illegal and arbitrary demand dated 8.1.1997. The Opposite Parties instead of giving clarification / justification of the demands, vide letter dated 18.6.1997, threatened the Complainant to impose further penalty of 10% on the demand dated 8.1.1997. The Opposite Parties had also illegally charged for the land which fell under green belt. The Complainant, vide letter dated 30.3.1999, requested the Opposite Parties to exclude the green belt of 30 meter width from the allotment of land and adjust / set off the cost thereof, as had been done in the allotment of land to Telecom Department Group Housing Plot. The Opposite Parties, however, did not reply to the said letter. On the contrary, the Opposite Parties, vide letter dated 30.6.2000, raised further demand of Rs.10,75,812. The Complainant deposited the said amount along with interest on 18.8.2000 under protest. Thereafter, the Opposite Parties made third demand of Rs.23,44,289, vide letter dated 16.10.2005 and fourth demand of Rs.1,28,00,999, vide letter dated 15.1.2008 which were paid by the Complainant under protest. The total amount of compensation demanded by the Opposite Parties was more than the actual cost of land. The Complainant filed Case No: CA - 59/2008 before the MRTP, which was dismissed for want of jurisdiction. Alleging deficiency in service and unfair trade practice on the part of the Opposite Parties, the Complainant filed the Consumer Complaint with the following prayer:
"In view of the above, it is most respectfully prayed that in the interest of justice, this Hon'ble Commission may be pleased to:
(a) direct the Respondents No. 1 & 2 to pay