Complainant has filed the present revision petition. Petitioner purchased residential plot no.1035 measuring 400 sq. yards in Sector 69, Mohali from the respondent for a sum of -2- Rs.5,60,000/- after adjusting the earnest money paid by him, balance amount of Rs.4,20,000/- was to be paid in 6 installments. First four installments were paid by him. However, 5th and 6th installments were paid with a delay of 2698 and 2377 days respectively. Respondent imposed the penalty of Rs.1,64,058/- for the said delay. Petitioner after paying the penalty filed the complaint before the District Forum seeking refund of the sum. District Forum held that the penalty had been imposed in violation of principles of natural justice as no notice was issued to the complainant. Complaint was allowed. Penalty of Rs.1,61,200/- was quashed, Rs.5,000/- were awarded by way of compensation and Rs.2,000/- as costs. Liberty was reserved with to the respondent to pass fresh order regarding imposition of penalty by giving show cause notice and proper hearing to the complainant/petitioner. In the appeal filed by the respondent, State Commission partly allowed the appeal and modified the order of the District Forum to the extent that the respondent Housing Board is entitled to charge interest @ 18% on the amount of Rs.84,000/- from 29.09.2000 till
-3- 18.02.2008 (the date of payment of the 5th installment) and on Rs.77,000/- from 29.09.2001 till 02.04.2008 (the date of payment of the 6th installment) only. Respondents were directed to refund the balance amount out of Rs.1,61,200/- after adjusting the interest on the sum of Rs.84,000/- and 77,000/- as per direction issued. State Commission returned the finding that the respondent has failed to produce any terms and conditions regarding imposition of penalty, though there was a provision of charging interest @ 18% p.a. in the letter of allotment for default in payment. Petitioner being aggrieved has filed present first appeal. It is not disputed before us that possession of the disputed house was handed over to the petition on 20.04.1999. Even after the handing over of the possession, respondent did not issue a notice to the petitioner to pay 5th and 6th installments. For the delayed payment, petitioner has to pay interest but the interest @ 18% p.a. is excessive. There is no doubt that there was a lapse on the part of the petitioner but the interest @ 18% is on the higher side. After hearing counsel for the parties we reduce the rate of interest to 9%.
-4- Rest of the order stays in terms. | 
