BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION AT BANGALORE (URBAN)

DATED 01^ST DAY OF JULY 2022

ORDER

SRI.K.S.BILAGI, PRESIDENT

1. This  complaint is filed under section 35 of C.P.Act, 2019 (herein referred as “Act”) to  direct the OP to refund Rs.2,73,600/- with interest at 18% P.A., Rs.5,00,000/-  towards damages and Rs.10,000/- towards cost of litigation.

2.The brief facts of the complaint are as follows:

The complainant being the member of OP party has paid in all Rs.3,62,400/- in the year 2007 towards respect of residential site measuring 30X40fts. The complainant had approached the OP to receive 3^rd installment of Rs.88,800/- and allot the site, but OP fails to do so. Therefore,  complainant by issuing legal notice called upon the OP to refund his amount, but OP fails to do so. Hence, this complaint.

3. Despite service of notice, OP fails to appear before this commission and OP has been placed exparte.

4. Complainant has filed his affidavit evidence and relies on 07 documents.

5. Heard. Perused records.

6. The points that would arise for our consideration are as under:-

1. Whether there is deficiency in service on the part of the OP?
2. Whether the complainant is entitled for the reliefs as sought for?
3. What order?

7. Our answer to the above points are as under:

       Point No.1:- In Affirmative.

      Point No.2:- Affirmative in part.   

      Point No.3:-As per the final order.

REASONS

8.  Point Nos.1 and 2: It is borne out from the  affidavit evidence and exhibit P1 and P3 that the complainant has paid Rs.1,020/- towards membership and also paid Rs.96,000/- on 10.01.2007. The OP having issued exhibit P4 notice for 1^st installment collected another sum of Rs.88,800/- from the complainant vide receipt under Exhibit P5. The OP by issuing Exhibit P6 notice demanded for payment of 2^nd installment of  Rs.88,800/-. The complainant has made payment of Rs.88,800/- on 19.09.2007. If these payments are taken into consideration, the complainant made payment of Rs.2,73,600/-. The complainant by issuing legal notice dt.08.07.2019 and 09.03.2021 called upon OP either to allot site or execute sale deed. The OP has issued receipt dt.24.07.2019 admitting the payment, but OP no way expressed his willingness  to either allot the site or refund money. Ultimately  complainant by issuing legal notice dt.09.03.2021 called upon OP to receive the balance amount and execute sale deed, but OP fails to do so.

9. OP neither executed sale deed by receiving balance amount nor refunded the amount.

10. According to the complainant OP is liable to refund Rs.2,73,600/-. Complainant is entitled for Rs.2,73,600/.

7. The complainant claims interest at 18% p.a. on this payment and also  damages Rs.50,000/- and cost of litigation of Rs.10,000/-. There is no privity of contract with regard to payment of interest at 18% p.a., but the amount of Rs.2,73,600/- is lying with OP since 2006-07. The claim of interest at 18% p.a. is exorbitant. Therefore, it is proper to award interest at 10% p.a.  on the payment made from respective dates till realization. When we award interest, the complainant is not entitled to any amount towards damages. Accordingly, we answer the point No.1 in affirmative and point No.2 partly in affirmative.

9.  Point no.3:- The OP is liable to refund Rs.2,73,600/- with interest  at 10% p.a. from the date of payment till realization. OP is also liable to pay Rs.10,000/- towards cost of litigation. The complainant is not entitled for any amount of  damages in addition to interest. The complaint requires to be allowed in part. In view of the discussions made above and findings given on point Nos.1 and 2, we proceed to pass the following 

O R D E R

1. The complaint is allowed in part.
2. The OP shall refund Rs.2,73,600/- with interest at 10% p.a. from the date of respective payment till realization and cost of Rs.10,000/-towards cost of litigation to the complainant.
3. OP shall comply this order within 60 days from this date, failing which the OP shall refund Rs.2,73,600/- with interest at 12%  after expiry of 60 days from this date till realization.
4. Furnish the copy of this order to the complainant and OP and return the documents to the complainant with extra pleading.

(Dictated to the Stenographer, got it transcribed and corrected, pronounced in the Open Commission on this 1^st day of July, 2022)

Documents produced by the Complainant-P.W.1 are as follows:

Documents produced by the representative of opposite party – R.W.1 : Nil