Petitioner applied for allotment of MIG house, which was allotted to him for a total consideration of Rs.1,55,000/-, out of which Rs.7,750/- was to be paid after 6 months of registration and Rs.15,500/- at the time of allotment and the remaining amount was to be paid in equated monthly instalments of Rs.1,664/- for 13 years.  Grievance of the petitioner is that she received allotment letter whereby the tentative price fixed at Rs.1,55,000/- had been enhanced to Rs.2,29,600/-.  Petitioner was directed to pay Rs.34,150/- as allotment money and the monthly instalment was fixed at Rs.2,462/-.  Since the petitioner was not in a position to pay the enhanced price, she requested for cancellation of the allotment and refund of the amount already paid.  Respondent cancelled the registration and ordered for forfeiture of 50% of the amount of the earnest money.  Petitioner, being aggrieved, filed complaint before the District Forum, which was allowed by passing the following order :

“Keeping in view our above observation and discussion, we direct the opposite parties to refund Rs.23,250/- with interest at the rate applicable in the case of saving bank account of the Nationalised Bank on the date of refund from 28.8.1992 till 1.1.2001 after deducting Rs.19,375/-.  We further direct the opposite parties to pay Rs.7,000/- as compensation and Rs.1,100/- as litigation expenses to the complainant.  The above said order be complied with within 45 days, failing which proceedings under Section 27 of the Consumer Protection Act shall be initiated.”

          Aggrieved by this, respondents filed appeal before the State Commission, which has been allowed.  State Commission held that in view of the specific clause contained in the letter of allotment, which was accepted by the petitioner, the respondents were entitled to forfeit 50% of the earnest money.

          We agree with the view taken by the State Commission.  The petitioner was bound by the terms and conditions of the agreement entered into between the parties.  As per the agreement, respondents were entitled to forfeit 50% of the earnest money in case of allotment is got cancelled by an allottee pre-maturely.  Dismissed.