- Heard counsel for the parties.
- The above appeal has been filed against the order of State Consumer Dispute Redressel Commission, dated 30.11.2021, passed in CC/275/2018, whereby the complaint was allowed and the appellant was directed to refund the entire amount deposited by the complainants along with interest @ 12% per annum from the date of respective deposit till the date of refund and pay compensation of Rs.1 lakh for mental agony and harassment and cost of Rs. 25,000/-.
- The complaint has been filed on the allegation that the appellant launched a project of commercial building in the year 2012. On coming to know about it, the complainants booked a space and were allotted office space no. 2523, super area 745.20 sq. ft. @ Rs.7300 per sq. ft. and the opposite party also executed an agreement on 17.08.2012. As per Clause 5 of the agreement, possession was to be handed over within 48 months from the date of the agreement or from the sanction of building plan, whichever was later, with grace period of six months. Although as per demand of the opposite party, the complainants deposited instalments from time to time and made total payment of Rs.21,02,416/-, but the opposite party failed to start construction on the spot. Ultimately, the opposite party by letter dated 22.07.2017, informed the complainants that they were not able to proceed with the project “Wave Business Tower-1” and the complainants were offered to take any alternate place. Subsequently, this complaint was filed for a refund of the amount. The appellant has filed written statement and contested the complaint. However, in the written statement, payment of Rs.21,02,416/- by the complainants and the fact that the opposite party was not able to start the project has not been disputed. The opposite party, however, took the plea that total basic sale consideration was Rs.54,39,960/- and in civil construction matters, time was not the essence of the contract, therefore, the complaint is liable to be dismissed.
The State Commission, in the impugned order, found that the due date of possession had already been expired and the project had not been initiated, therefore, the complaint for refund of the money was legally filed. Accordingly, the complaint was allowed, and the opposite party was directed to refund Rs.21,02,416/- with interest @12% per annum from the date of respective deposit till the date of refund and pay a compensation of Rs.1 lakh for mental and physical harassment and pay Rs.25,000/- as litigation cost. - In the appeal, the counsel for the appellant has only confined his argument to the rate of interest as well as the compensation which has been awarded for physical and mental harassment. He said that for breach of contract, the only compensation could be awarded as per Section 73 of the Contract Act and in which nowadays interest @ 9% per annum is being awarded by the Supreme Court as well as this Commission also and award of compensation in multiple head is not proper. We have considered the arguments of the counsel for the parties. Supreme Court in Experion Developers Private Limited Vs. Sushma Ashok Shiroor, 2022 SCC OnLine SC 416, has held that in case of refund @ 9% p.a. interest is just compensation, which amounts to restitutory and compensatory both.
Order In view of the judgment of the Supreme Court, we partly allow this appeal and modified the order of State Commission to the extent that rate of interest is scaled down to 9% per annum and the compensation of Rs.1 lakh for mental agony and harassment is deleted. In compliance with the order dated 04.05.2022, the appellant has deposited the principal amount with interest @ 9% per annum, which has been withdrawn by the respondents. However, the counsel for the respondents states that the total decretal amount is deficient. If the total amount is deficient, it will be open for the respondents to execute the decree. |
