BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, MYSORE-570023

CONSUMER COMPLAINT NO.65/2019

DATED ON THIS THE 13^th February, 2020

      Present:   1) Sri. C.V.Maragoor

B.Com., L.L.M., - PRESIDENT   

                     2) Sri. Devakumar.M.C.           

                                        B.E., LLB., PGDCLP   - MEMBER

Sri C.V.MARAGOOR,

President

1.       This complaint has filed by Smt.Madhu Jain W/o Dharampal Jain resident of Bangalore to direct the opposite party Karnataka Telecom Department Employees Co-operative Society represented by its President to allot a site measuring 50 x 80 feet and execute registered sale deed in her favour in their layout named as Athamananda Sagar, Mysuru and to pay compensation of Rs.4,00,000/- for causing inordinate delay and to pay cost of the proceedings of Rs.15,000/-.  Further, the complainant has asked for a sum of Rs.5,00,000/- as compensation for having suffered mental trauma, tension, hardship and inconvenience.
2.       The opposite party is a Co-operative Society registered under the Karnataka Co-operative Societies Act, 1959 and object of the society is to form residential layout and allot the same to the members.  The complainant after becoming member of the opposite party society had applied for a site measuring 50 x 80 feet at Athamananda Sagar, Mysuru.  The complainant has made payment of Rs.2,28,000/-, again Rs.2,28,000/- and for that opposite party has issued receipts dated 19.12.2008 and 14.07.2010.  Further the complainant has made payment to the opposite party through cheque for a sum of Rs.2,01,020/-.
3.       It is further case of complainant that at the time of accepting the money, the opposite party has assured that it will develop the layout and execute registered sale deed in respect of 50 x 80 feet site (plot) in her favour within 18 months.  Despite having received substantial amount, the opposite party has failed to allot a site in favour of the complainant.  In spite of repeated requests made by her giving visit to the opposite party did not respond.  Hence, this complaint.
4.       The opposite party after the service of notice appeared through its learned counsel and filed written version admitting that the complainant is an associate member of their society and she has got membership No.A-26016 and thereafter on 14.03.2008 the complainant has made application seeking allotment of a site in Athmananda Sagar layout to be formed by the society.  The opposite party has acquired the land in and around Ilwala hamlet for formation of residential layout for the benefit of its members, but in the year 2009 the Government of Karnataka passed notification for formation of satellite town parallel to Mysur City in seven villages including Nagawala village.  The opposite party admitted that the complainant after becoming the member of the society has paid a sum of Rs.6,56,000/-.  The complainant is still due to the opposite party society to the tune of Rs.5,44,000/-.  The Government of Karnataka in the year 2016 has approved the Comprehensive Development Plan (CDP) and for development of the area it is included in Mysuru Urban Development Authority.  The opposite party has submitted application for conversion of land of remaining extent of 154 acres out of 300 acres of Athamanand Sagar Layout.  The work has been delayed because of Government notification but not due to negligence or delay on the part of opposite party society. The opposite party will intimate the provisional allotment letter within short period of time after getting the further extension of layout plan issued by the Authority.  The site value of the layout is more than two times over and above the deposited amount thus the complainant is benefited and she will be allotted the site shortly.  The opposite party will be allotting a site to the complainant and the question of payment of compensation as asked in the complaint for causing alleged delay and tension does not arise.  On the above grounds, opposite party asked to dismiss the complaint.
5.       The complainant filed her affidavit evidence and produced some documents in support of her case.  That one B.S.Manjunath, Secretary of opposite party society filed affidavit evidence and produced five documents.
6.       We have heard the oral arguments in addition to written brief submitted by the opposite party and the  points that would arise for determination are as under:-  

1. Whether the complainant proves that the act of opposite party not allotting site and executing registered sale deed within a reasonable time amounts to deficiency in service?
2.  Is complainant entitled to the reliefs sought for?

7.    Our findings on the aforesaid points are as follows:

Point No.1 :- In the affirmative;

Point No.2 :- In the partly affirmative as per final order for the following

:: R E A S O N S ::

8.         Point Nos.1 and 2:-The learned counsel for the complainant has submitted that the opposite party has not disputed membership of the complainant, payment of three instalments and assured to allot site in Athmananda Sagar layout.  It is the contention of opposite party that they are ready to execute sale deed on the basis of seniority.  But, the complainant has not paid full value of the site and still she has to pay balance amount of Rs.5,44,000/-. The learned counsel for the opposite party argued that there is no delay in allotting site to the complainant as the complainant has not completed her part of obligation as such, there is no deficiency in service on the part of opposite party society.  The complainant has produced her membership application dated 09.01.2008, application form for purchase of site in the opposite party society along with cheque dated 09.01.2008 for Rs.2,01,020/-.  The complainant has produced receipt dated 19.12.2008 for Rs.2,28,000/- and 14.07.2010 for Rs.2,28,000/- issued by opposite party which paid by the complainant as instalments for site measuring 50 x 80 ft.
9.        The defence of opposite party is that in the year 2009 the State Government passed a notification for formation of satellite town parallel to Mysuru city in seven villages including Nagawala village wherein the opposite party proposed to form Athmananda Sagar layout.  The opposite party in para No.4 of version and affidavit evidence stated that in the year 2016, the Government of Karnataka has approved the CDP plan for development of the area and included in Mysuru Urban Development Authority.  The opposite party has already submitted application for conversion of land, use of remaining extent of 154 acres out of 300 acres of Athmananda Sagar layout.  This defence of opposite party indicates that the State Government has given approval for formation of layout in the year 2016 itself.  The opposite party has also produced notification dated 12.01.2016. 
10.       The opposite party contention is that there is no delay on its part and it has not caused any inconvenience to the complainant. The sital value of the said layout more than two times over and above the deposited amount.  Therefore, the complainant is benefitted and she will be allotted the site shortly.  The opposite party has only highlighted with regard to value of the site but it has not whispered about use of the complainant’s amount more than Rs.6,56,000/- without allotment of site for more than 10 years.  If the amount was kept in Nationalized bank or financial institutions it would have become double or three times.  The opposite party would have sent a notice to the complainant that they are ready to allot site subject to payment of balance amount.  According to the defence of opposite party still application is pending for conversion of land before the competent authority.  After converting the land the competent authority has to approve CDP then only the opposite party can issue allotment letter.  The opposite party repeatedly pleaded that they are ready to allot site to the complainant.  According to the defence of opposite party still land is not converted and CDP is not approved by the competent authority.  Therefore, the defence of opposite party that there is no deficiency on its part is not acceptable.  Contrary above discussion proves that the opposite party has committed default in allotment of site to the complainant within a reasonable time though the complainant has failed to produce document that the opposite party has agreed to allot site within 18 months.
11.       The learned counsel for the opposite party on the point of award of compensation brought to the Forum notice the case of Bangalore Development Authority V/s Syndicate Bank (2007) 6 Supreme Court Cases 711.  In the above case appellant Bangalore Development Authority has delivered possession of the sites during the pendency of consumer complaints on originally agreed price.  The Hon’ble Supreme Court held that in such case no interest is payable on the price paid from the date of deposit to the date of delivery of possession.  The above citation is not coming to the aid of opposite party since though it has pleaded in the defence and affidavit evidence that it is ready to allot site to the complainant but even after lapse of one year from the date of filing defence has failed to allot site to the complainant as agreed.  Therefore, the opposite party shall liable to pay compensation amount with interest since the complainant has paid Rs.6,56,000/- about 10 years back.  Though the Government has given approval for making layout to the opposite party in the year 2016 and even after passing four years time, the opposite party has not allotted site to the complainant. 
12.       The complainant being 64 years old lady and she has suffered mental trauma and tension for inordinate delay for not allotting site.  Therefore, the opposite party shall liable to pay compensation of Rs.2,00,000/- for delay in allotting site and causing mental trauma and tension in addition to litigation costs.  Accordingly, we proceed to pass the following

:: ORDER ::

1. The complaint filed by Smt.Madhu Jain is partly allowed directing the opposite party to allot a site measuring 50 x 80 feet and execute the registered sale deed in favour of the complainant in Athmananda Sagar layout, Mysuru within 60 days from the date of order.  The complainant shall pay balance amount of Rs.5,44,000/- to the opposite party society within 30 days from the date of receipt of allotment letter.  In case the complainant fails to pay the balance amount within 30 days she is not entitled for penalty amount.  In case of default to allot and execute registered sale deed in favour of the complainant the opposite party shall liable to pay penalty of Rs.100/- per day till compliance.
2. It is further ordered that the opposite party shall pay Rs.2,00,000/- as compensation and Rs.10,000/- as cost of litigation to the complainant within 60 days from the date of order.  Otherwise, it carries interest at the rate of 10% p.a. from the date of filing complaint till payment.
3. Furnish the copy of order to the complainant and opposite party at free of cost.

(Dictated to the Stenographer transcribed, typed by her, corrected by us and then pronounced in open Forum on this the 13^th February, 2020)