Developers and housing boards are jointly liable for compensation and interest for delayed possession as per consumer agreements.

R. K. AGRAWAL, J., PRESIDENT

The present Appeal Execution has been filed by Mr. Rajiv Malhotra (hereinafter referred to as Appellant/Complainant) under Section 19 read with Section 21 and 22 of the Consumer Protection Act, 1986 against the Order dated 12.09.2014 passed by the Chandigarh UT Consumer Disputes Redressal Commission (hereinafter referred to as State Commission), whereby the Execution Application No. 38 / 2014 filed by the Appellant had been partly allowed.

Brief facts of the case are that the Appellant/Complainant booked a Penthouse with Parsvnath Developer Ltd. and a tripartite Agreement was entered between Appellant/Complainant, Parsvnath Developer Ltd. (hereinafter referred to as the Developer) and Chandigarh Housing Board (hereinafter referred to as CHB).The Appellant deposited ₹12,85,000/- and ₹12,86,500/- on 27.09.2007 and 04.02.2008 respectively.As the Developer failed to deliver the possession of the Penthouse within stipulated period, the Appellant filed a Consumer Complaint before the State Commission.Vide Order dated 11.08.2011, the State Commission allowed the Complaint in following terms:-

“(i) Parsvnath Developers Limited andthe Chandigarh Housing Board are held liable jointly and severally to refund the amount deposited by the complainants, alongwith interest at the SBI Term Deposit rate as applicable on the date of refund,with effect from therespective dates of deposits, till actual payment to complainants, as provided by Clause 9(d) of theFlat Buyer Agreement ;

(ii) Parsvnath Developers Limited shall also pay compensation, (for not offering the built up flat within 36 months) @ Rs.107.60 per sq. mtr (Rs.10/- per sq.ft) of the super area of the unit, per month, from 5.10.2009,the last date of completion of the project, till actual payment to the complainants is made, as provided by Clause 9(c) of the Flat BuyerAgreement.

(iii) The aforesaid directions shall be complied with, by the OPs, within 30 days, from the date ofreceipt of acopy of theorder, failing which they shall be liable to pay penal interest @ 12% p.a, on the aforesaid payable amounts.

(iv) The OPs shall jointly and severally pay to the complainants Rs.5,000/- as costs of litigation.”

Feeling aggrieved, Parsvnath Developers Ltd. filed Appeal, i.e., FA No.371/2011 before this Commission.Vide Order dated 05.03.2013, this Commission modified the Order dated 11.08.2011 passed by the State Commission in following terms:-

“The District Forum as well as the State Commission in most of the cases while allowing the complaint have directed the Developer and the CHB jointly and severally to pay interest at the rate of SBI term deposit prevalent at the relevant time, i.e. 7.75% p.a. in terms of clause 9 (d) of the Flat Buyer Agreements. However, in some cases it varies from 9% to 12% p.a.

To avoid the contradiction in the directions given by the District Forum and the State Commission regarding the payment of interest to the Complainants, we modify the orders passed by the fora below and direct the Developer and the CHB to pay interest at the uniform rate of 9% p.a (payable to the senior citizen on Bank fixed deposit at the relevant time) to the Complaints in the ratio of 70:30 from the respective dates of deposit till the date of deposit of the amount by the Appellants/Petitionersin the Escrow Account.

Adverting to the point of compensation, Ld. Counsel for the Developer has tried to shift the burden on the CHB by stating that the CHB has failed to hand over the possession of the unencumbered land to the Developer to raise the construction.That had the CHB handed over the possession of the unencumbered land to the Developer, the construction of the residential units would have been completed within the stipulated time. As against this, Ld. Counsel appearing for the CHB states that an area of 123.79 acres o