CC  21  of 2012

Between:

GVSV Prasad Bhavana

S/o. Satya Rao, 33 years

Pvt. Employee, Flat No. G2

Bandari Layout

Bhaskar Residency

Nizampet, Hyderabad.                                 ***                           Complainant

And

1)  M/s. Aliens  Developers P. Ltd.

Rep. by its  Managing Director &

Joint Managing Director

Hari Challa, S/o. CVR Chowdary

Flat No. 910, Teja Block

My Home  Navadeepa Apartments

Madhapur,  Near High Tech City

Hyderabad.                                                

2)  Hari Challa, S/o. CVR Chowdary

Managing Director

M/s. Aliens  Developers P. Ltd.

Flat No. 910, Teja Block

My Home  Navadeepa Apartments

Madhapur,  Near High Tech City

Hyderabad.          

3)  C. Venkat Prasanna,

S/o. C.V.R. Chowdary

Joint Managing Director                  

M/s. Aliens  Developers P. Ltd.

Flat No. 910, Teja Block

My Home  Navadeepa Apartments

Madhapur,  Near High Tech City

Hyderabad.                                                           ***                           Opposite Parties  

Counsel for the Complainant:                     M/s.  V. Appa Rao

Counsel for the Respondents:                     Served.

CORAM:

HON’BLE SRI JUSTICE D.APPA RAO, PRESIDENT.

                                  SMT. M. SHREESHA, MEMBER

&

                                  SRI S. BHUJANGA RAO, MEMBER

WEDNESDAY, THE TWENTY FIFTH DAY OF JULY TWO THOUSAND TWELVE

ORAL ORDER:  (Per Hon’ble Sri Justice D. Appa Rao, President)

***

1)                This is a complaint filed u/s  17 of the Consumer Protection Act  claiming refund of amount together with compensation and costs.

2)                The case of the complainant in brief is that  Op1 is a company represented by  Ops 2 & 3  Managing Director & Joint Managing Director respectively  had taken up construction of   apartment complex  under the name and style  M/s. Aliens Space Station-I situated at Tellapur village  in Ranga Reddy district.   While an agreement was executed on  3.10.2006  in respect of flat No.  1441, floor No. 14, block No.  7, type-2  comprising of  2191 sft built up area,  it was confirmed by letter dt.  3.12.2007  on receipt of token advance of Rs. 1 lakh.    He had accordingly paid  Rs. 13,40,000/- as against total sale consideration of Rs. 49,53,225/-.   The opposite parties assured that it would  hand over the flat  by 2.4.2010 on payment of remaining balance of Rs. 38,75,225/- as per the building permission.  Later when he enquired  the stage of construction the opposite parties informed that his allotment was cancelled.  This was  contrary to the agreement.  On that he gave a legal notice  dt. 12.11.2011 for which  no reply was received.    They had in fact  allotted the very same flat to some other person without informing him.    This amounts to deficiency in service.    In the meantime there was escalation of costs to a tune of Rs. 10 lakhs.    Rate of interest  2.50% per month was fixed  in the agreement in case of default, and therefore he claimed the very same rate of interest which came to Rs. 19,47,000/-.    Therefore he filed the complaint claiming Rs. 13,40,000/- the amount paid towards sale consideration  together with interest  of Rs. 19,47,000/- for the period 3.10.2006 to 31.1.2012 with subsequent interest  from 1.2.2012 besides compensation of Rs. 10 lakhs and costs of  Rs. 55,000/-.

3)                 The opposite parties did not choose to contest  despite the fact that notices were served on them. 

4)                 The complainant in proof of his case filed his affidavit evidence and got Exs. A1 to A6 marked. 

5)                 The point that arises for consideration is whether the complainant is entitled for refund of amount with  interest, together with compensation and costs? 

6)                 The complainant  reiterated the facts mentioned in the complaint and proved payment of  amounts by filing a bunch of receipts  marked as Ex. A2 besides the agreement marked as Ex. A1 wherein the flat was reserved for  him.   He also filed Ex. A3 office copy of the legal notice got issued by him and the acknowledgement thereof.   Since the affidavit of the complainant was  un-controverted, and in the light of documents filed by the complainant, it is apparent  that the opposite party builder  had reserved the flat No. 1441, floor No. 14, block No.  7, type-2  comprising of  2191 sft built up area in their venture M/s. Aliens Space Station-I situated at Tellapur village  in Ranga Reddy district.     Having agreed that it would complete the flat  on or before  2.4.2010 and hand it over to the complainant,   the opposite parties did  not do so.   They neither  denied payment  made by the complainant  under the agreement  nor  the allegation that it had allotted the very same flat to some other person.    Even  for the legal notice  issued by the complainant it did not evoke any reply.  When no explanation whatsoever was given,  the  complainant proved beyond doubt that  they have no say on the allegations made by him.   Unfortunately, the complainant did not  file any document to  show  that there was escalation of prices.   The opposite parties did not demand  rate of interest at  2.50% per month  on the ground that the agreement provided for the same.    

7)                In the light of above,  we are of the opinion that the complainant undoubtedly entitled to the interest for the amounts paid however  not @ 2.50% per month,  which we feel  highly excessive.    Had the opposite parties claimed  interest at that rate the same yardstick could be applied.    Since the opposite parties had the advantage  of the amount paid by the complainant, they  have  to refund the amount with interest @ 12% p.a.,  which we feel reasonable and modest.    Since the very complainant claimed refund of the amount, we have no hesitation  in holding that the complainant is  entitled to  the amount  with respective dates of payment till the date of realization.   Since the agreement was entered into  in 2006  and for five years  the opposite parties did neither  inform that the flat would be completed within the time stipulated nor inform as to the stage, undoubtedly  the complainant must have  suffered mental agony for which a compensation of Rs. 1 lakh could be awarded which we feel reasonable and modest.

8)                In the result the complaint is allowed  in part directing the opposite parties to refund  Rs. 13,40,000/- with interest @ 12% p.a., from  respective dates of payment till the date of realization  together with compensation of Rs. 1 lakh and costs of Rs. 10,000/-.  Time for compliance four weeks. 

1)      _______________________________

PRESIDENT                 

2)      ________________________________

 MEMBER           

3)      ________________________________

 MEMBER           

APPENDIX OF EVIDENCE

WITNESSES EXAMINED FOR

COMPLAINANT                                                              OPPOSITE PARTIES

None                                                                                                  None

Documents marked for complainant:

Ex  A-1                  Agreement for reservation of flat dt : 3.10.2006

Ex A-2                   Cash Acknowledgement receipts dt : 3.10.2006,

14.10.2006, 10-11-2006, 29-12-2006, 7.5.2007,

28-07-2007, 3.9.2007, 12-11-2007, 12-12-2007

and 7-2-2008.

Ex A-3                   office copy of legal notice dt : 12.11.2011

Ex A-4                   original postal receipts dt : 16.11.2011

Ex A-5                   Letter of incorporation dt : 21.3.2006

Ex A-6                   Form No. 32.

Documents marked for Opposite Parties :             Nil

1)      _______________________________

PRESIDENT                 

2)      ________________________________

 MEMBER           

3)      ________________________________

 MEMBER           

          25/07/2012

*pnr

UP LOAD – O.K.