Haryana State Agriculatural ... vs Bishamber Dayal Goyal & Ors

2. The facts of the case briefly are as follows :

c) On non-payment of the instalments, the appellant called upon the respondents to make the balance payments, being 75% of the cost with interest and penalty charges as prescribed in the said allotment letter. The respondents did not pay the same and filed a complaint before the District Forum alleging deficiency of services, failure to notify the Adampur Mandi as Market Area and failure to develop and provide basic amenities in the said locality. The appellant opposed the complaint on the ground that the respondents failed to make the payments of the instalments and further that one of the complainants was not dealing with the sale and purchase of agricultural produce by himself and instead had sublet the shop to someone else.

d) The District Forum appointed a Senior Member of the Forum as the Local Commissioner to inspect the said area and to file a report. The Local Commissioner filed a report stating that the area was developed with civic amenities and platforms were constructed in front of the shops. However, it is admitted that the complainant is not in a position to run the business in the market area as the same has not been notified by a notification and/or order declaring it as a sub-yard for the purpose of running the business. The District Forum held by order dated March 4, 1998 that the notification dated October 31, 1980 is not applicable since the land was auctioned in 1991 and further, the same was not in the ownership of the appellant and no business was transacted by the complainant at the Adampur Mandi. The District Forum held that since no notification was issued declaring the said area as sub-yard, it amounts to deficiency of service and the appellant was directed to withdraw the demand notice and further directed not to charge any interest on the instalments. The appellant filed first appeal before the State Commission, being First Appeal No.362 of 1998. The State Commissioner by order dated March 3, 1998 remanded the matter to the District Forum holding that the appointment of Local Commissioner, Shri Arya, being a member of the District Forum vitiated the proceedings.

e) Thereafter, the District Forum took up the matter and appointed an Advocate - Mr. G.L. Balhara - as the Local Commissioner, to make an inspection and to file a report. The appellant herein on April 20, 2000, once again issued demand notices to the respondents demanding the payments. The main contention of the respondents being the complainants was that although the area was not notified by the appellant-Board as a market area, they were unable to conduct any grain business in the shops for which they had purchased the said plots; and further alleged that no basic amenities, i.e., sewerage, roads, parao, electricity etc. had been provided by the Board, and that there were no boundary walls and gates of the market area which were a necessity in such Mandi; furthermore, there were heaps of debris lying around the shops. In these circumstances, the plots allotted were redundant.

f) The appellants contended that the complainants are not consumers and there is no deficiency of service. The respondents failed to construct the booths in two years’ time even after getting the licences. Furthermore, the respondents are not dealing with the agricultural produce instead they have sublet the plots in question to other persons. According to the appellants, the amenities of sewerage, water supply and electricity were provided and construction of a platform was also done by them. An Additional Mandi was established, according to the appellant, by the Colonization Department and subsequently transferred to them in 1986. The Colonization Department, in 1980, duly notified the same. The District Forum after perusing the report dated April 25, 2000 filed by the Local Commissioner – Mr. Balhara, Advocate -- held that it is admitted by both the parties that the Additional Mandi has no boundary walls and gates and that there has been no notification by the appellant- Board, further no auction has been made by the respondents and the debris are lying around the shops. In these circumstances, the District Forum by order dated September 20, 2001 held that it is admitted that due to the omission of the appellant, no business could be done in the Mandi and the boundary walls which are essential for the business, were not provided. It is further held that the notification dated October 31, 1980 has no manner of application since the land was transferred to the appellant in 1986 and the shops were auctioned in 1981. The District Forum further held that due to the omission of the appellant, the complainants/respondents herein were deprived of doing the grain business for which the plots were purchased and in the absence of the notification of the area as a sub-yard, the District Forum held that there was a grave deficiency of service. The Forum awarded the respondents interest at 12% per annum on the entire deposited amount after two years from the date of issuance of allotment letters to the respondents till the development and notification of the area in question is not done. The respondents were directed to deposit the remaining balance amount and the appellant-Board was directed not to levy any charge, penalty or interest on the same. However, the Forum refused to allow the compensation as prayed by the respondents and directed the appellants to develop the area within a month.

g) Being aggrieved, the appellant went in appeal before the State Commission. Cross-appeals were also filed by the respondents before the State Commission, seeking enhancement of the rate of interest from 12% to 18% per annum and further sought compensation. On November 10, 2004, both the appeals were dismissed. The State Commission upheld the order of the District Forum holding that the report of the Local Commissioner did not raise any objection with regard thereto nor placed any notification before the District Forum. In these circumstances, the appellant herein filed a revision petition before the National Commission resulting in dismissal, hence, the matter has come up in appeal before us.

8. In the present case, the inaction on the part of the appellant in providing the requisite facilities for more than a decade clearly establishes deficiency of services as the respondents were prevented from carrying out the grain business. However, the respondents were also incorrect in refusing to pay the instalments and violating the terms of the instalment letter. Thus, considering the surrounding circumstances wherein the appellant has been unable to develop the area for more than two decades and the resultant loss suffered by the respondents, we are of the opinion that in the present situation, there is a need for proportionate relief as the levy of penal interest and other charges on the respondents will be grossly unfair.

9. In these circumstances, we do not find that any grounds have been made out by the appellant to interfere with the order passed by the National Commission. We have minutely examined the order passed by the District Forum as well as the State Commission, and we have noticed that adequate relief has been granted even to the respondents/complainants by awarding interest @ 12 per cent per annum on the entire deposited amounts. Hence, we do not find any merit in the appeal and the same is accordingly dismissed. There shall, however, be no order as to costs.

…....……………………..J. (Gyan Sudha Misra) New Delhi;