Complainant through Lrd. Adv. Palkar

Opponents absent (Ex-parte)

Per : Mr. V. P. Utpat, President              Place   :  PUNE

                                               J U D G M E N T 

  20/06/2014                                                                 

          This complaint is filed by the Co-operative Housing Society against the Builder and Promoter for deficiency in service under section 12 of the Consumer Protection Act, 1986.  The brief facts are as follows,

1]       The complainant is a registered Co-operative Housing Society.  The opponent no. 1 is the registered partnership firm dealing in the profession of construction.  The opponent no. 2 and 3 are the partners of the opponent no. 1 firm.  It is the case of the complainant that, it is the owner of the land bearing no. 10 and 11, carved out of Survey No. 134/1A of village Bhamburda and bearing C.T.S. No. 2712A/1/10 & 2712A/1/11, which is situated Bhamburda, Shivajinagar, Pune admeasuring 505.9 Sq. Mtrs & 819.4 Sq. Mtrs.  The total area is 1325 Sq. Mtrs. as per the property card extract.  The society had constructed building consisting of 12 residential units.   The members of the society were desirous of redevelopment by demolishing the old structure.  On 19/05/2007, the members of the society had passed the resolution accordingly.  The opponents approved for the reconstruction of the said building.  An agreement took place between the complainant society and the opponents and the opponents agreed to reconstruct the building within 24 months from the date of taking possession.  The opponent agreed to pay rental amount @ 15,000/- per month per member from 1/11/2011 onwards.  That amount is worked out as Rs. 34,20,000/- till 31/7/2012.  the opponents had also agreed to give security deposit of Rs. 20,00,000/-, that amount is not given by the opponents.  The opponents have also agreed to give sinking fund and maintenance fund, that amount of Rs. 12,00,000/- as per the terms and conditions of the agreement.  As those amounts were not paid to the complainants, they could not earn interest on the said amount.  Hence, the complainant society has filed this complaint for recovery of interest on security deposit Rs. 8,10,000/-, interest on sinking fund Rs. 2,70,000/-, compensation for mental torture Rs.4,50,000/- and compensation for the hardship occasioned to the members of the society Rs. 4,50,000/-.  The total claim of the complainant is Rs.19,80,000/-.  The complainants have also prayed for directing the opponent to complete the construction as per the agreement and obtain completion certificate from PMC.  The complainants have also asked costs of Rs. 25,000/- for the present proceeding.

2]      The opponents though duly served remained absent, hence the complaint proceeded ex-parte against the opponents.

3]      The complainant society has produced voluminous documentary evidence, such as registered development dtd. 10/03/2008, copy of the resolution, which was passed by the society, 7/12 extract of the disputed property, office copy of the legal notice, acknowledgements, evidence affidavit and written notes of argument. 

4]      After scrutinizing the documentary evidence and considering pleadings of the complainant, the following points arise for the determination of the Forum. The points, findings and the reasons thereon are as follows-

REASONS    :-

5]      It reveals from the pleadings as well as documents, particularly the agreement between the parties, that the opponents have agreed to pay security deposit of Rs. 20,00,000/- to the complainant society.  It was also agreed that the opponent will pay Rs. 15,000/- per month per member of the society, as the rent for accommodation during the process of construction.  The opponents have further agreed to pay sinking fund and maintenance charges of Rs. 12,00,000/-.  It is significant to note that the complainant society has not disclosed in the complaint, as to whether those amounts are paid by the opponents to the society or not.  The complainant society has asked interest @ 9% p.a. on the security deposit, maintenance charges and sinking fund.  But the agreement between the parties is silent as regards the terms and conditions of the payment of interest on the said amount.  The Consumer Protection Act, 1986 does not provide any statutory provision as regards the payment of interest on due amount.  There is no clause as regards the payment of interest in the agreement.  In these circumstances, this Forum is of the opinion that the complainants are not entitled to claim interest from the opponent.  It further reveals from the pleadings that even though the rental amount of Rs. 34,00,000/- is due from the opponent, that amount is not  claimed  by  the complainant,  in  order  to  bring  this complaint

within the pecuniary jurisdiction of this Forum.  The complainants have asked compensation for mental torture and harassment to the tune of Rs. 4,50,000/- and for hardship Rs. 4,50,000/-.  It reveals that the complainant society has filed this complaint only with the intention to extract money from the opponent.  No doubt, the opponent agreed to complete the construction within stipulated period and the said party has not complied with the agreement and that amounts to deficiency in service.  Hence, it is the opinion of the Forum that the complainants are entitled for relief as regards completion of construction as well as obtaining completion certificate and certain amount of compensation from the opponent for delaying the construction.  As the opponent failed to contest the matter, the documentary evidence and affidavit of the complainant remained unchallenged.  After considering the evidence and pleadings, this Forum pass the following order.

                                       O R D E R

1. The complaint is partly allowed.

1. It is hereby declared that the opponents have caused deficiency in service by not completing  the  construction  and  not

giving completion certificate to the complainant society within stipulated period.

3.       The opponents are directed to complete the construction as per agreement and obtain completion certificate from PMC and hand over the same to the complainant society within six months from the date of receipt of copy of this order.

4.       The opponents are also directed to pay an amount of Rs. 10,000/- (Rs. Ten Thousand only) towards compensation for mental and physical harassment and deficiency in service and an amount of Rs. 2,000/- (Rs. Two Thousand only) towards costs of the complaint within six weeks from the date of receipt of copy of this order.

5.       Copies of this order be furnished to the parties free of cost.

5.       Parties are directed to collect the sets, which were provided for Members within one month from the date of order, otherwise those will be destroyed.