Ghaziabad Development Authority vs Meera Sanger

Ghaziabad Development Authority, the appellant herein ('the Authority', for short) floated a housing scheme in Govindpuram. In the year 1989, the respondent applied for a 200 sq. mt. plot. The Authority issued a reservation letter. There were some delay in payment of some instalments. According to the respondent, all instalments have been paid with interest.

2. The respondent filed a complaint before the District Forum in the year 1993 seeking (i) delivery of the plot,

(ii) award of interest at 18% per annum on the deposited amount, and (iii) compensation for the delay. The Authority resisted the petition contending that in view of a stay order issued by the High Court in writ petitions filed by the land owners, the Authority could not deliver the plot. The District Forum, by order dated 31.7.1997, directed delivery of possession of plot within three months and also awarded interest at 18% per annum on the amount ......2.

deposited. The appeal filed by the Authority was dismissed by the State Commission on 10.3.2000. The revision filed by the appellant was dismissed by a non-speaking order dated 14.3.2002 which is impugned in this appeal. The order merely states that in view of the decision in Haryana Urban Development Authority Vs. Darsh Kumar (Revision Petition No. 1197 of 1998), where the Commission had upheld the interest at 18% per annum, the revision petition was being dismissed. The various contentions urged by the appellant were not considered. In particular, the contention that the plot could not be delivered for reasons beyond its control and that there was no deficiency in service and the further contention that where delivery of plot is directed, payment of interest at 18% per annum was not warranted. As the order is a non-speaking order which does not deal with the issues raised, in the normal course, we would have set aside the order and remitted the matter to the National Commission.

2. However, the respondent filed a complaint before the District Forum in the year 1998 and the District Forum directed the appellant to deliver possession of the plot within two months and to pay interest at 18% per annum on the amount deposited from 1.1.1993 till the date of .....2.

possession, and also pay Rs.2,000/- as compensation with a further direction, on failure to comply, the Authority should pay interest at 21% per annum. The District Forum also stated that if any amount was due by the allottee, the Authority can adjust the same from the interest payable to the allottee. Even though, the appellant was aggrieved by the said order, in compliance of the said order it executed the sale deed in favour of the allottee on 29.5.1999 with a condition that the balance amount should be paid by the allottee. The possession of the flat was delivered on 16.7.1999.

3. The appeal filed by the appellant was disposed of by the State Commission by merely reducing the default interest rate from 21% to 18% per annum by order dated 5.3.2001. The revision filed by the appellant was disposed of by National Commission by a non-speaking order dated 24.3.2002 disposing of the petition in the light of its decision in Darsh Kumar upholding the interest rate at 18% per annum. Various contentions urged by the appellant were not considered by the National Commission.

.........................J. ( R.V. RAVEENDRAN ) New Delhi; .........................J. November 19, 2009. ( K.S. RADHAKRISHNAN ) IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION CIVIL APPEAL NO. 6050 OF 2002 GHAZIABAD DEVELOPMENT AUTHORITY .......APPELLANT(S) Versus K.K. SHARMA ......RESPONDENT(S) O R D E R Ghaziabad Development Authority, the appellant herein ('the Authority', for short) floated a housing scheme in Govindpuram named 'Akansha II'. The Authority issued a reservation letter on 26.2.1989 to the respondent. The respondent deposited Rs.21,510/- as registration amount. On 29.12.1993, respondent demanded refund on the ground that the house allotted was not worth living. The Authority refunded the registration amount deposited by the respondent on 20.5.1994 after deducting Rs.5,000/- towards cancellation charges. It did not pay any interest. On a complaint filed by the respondent, the District Forum, by order dated 9.9.1997, directed refund of the deducted amount of Rs.5,000/- and also directed payment of interest on the deposited amount at 18% per annum from the date of deposit till 20.5.1994 alongwith Rs.2,000/- as costs. The appellant filed an appeal before the State Commission in October 1997. However, as there was no stay, in compliance of the District Forum order, the Authority deposited a sum ......2.

6. Accordingly, we allow this appeal in part and set aside the order of the District Forum, as affirmed by the State Commission and the National Commission and delete the award of interest and award of compensation of Rs.2,000/-. If any amount is still outstanding from the respondent, it is open to the Authority to take such action as is available to them in accordance with law for recovery of the same.

of Rs.5,000/- as also Rs.79,499/- towards interest. Thereafter, the State Commission affirmed the order upholding the interest at 18% per annum. Revision filed by the appellant has been dismissed by a non-speaking order following its earlier decision in Darsh Kumar.

3. We, accordingly, allow this appeal in part and reduce the interest from 18% to 10% per annum. In all other respects, the order of the District Forum is affirmed. Consequently, the Authority shall be entitled to recover back the excess interest paid to the respondent.