C.C.No.62 OF 2010

Between:

Rabindra Nath Sahu S/o late Bhaskar Sahu

Aged 61 years, R/o Kokavari Street
One way traffic Road, Berhampur-001
Ganjam Dist, Orissa                                                 Complainant

AND

Sai Lakshmi Township Pvt Ltd.,
rep. by its Managing Partner
N.Surya Narayana Reddy
49-24-51/A/201, Sri Pavan Estates
Madhranagar, Sankaramatam Road
Visakhapatnam-016, A.P.

Opposite Party

Counsel for the Complainant               Dr.P.P.Ramayya

Counsel for the opposite party            Sri B.Madhusudhana Rao

QUORUM:              SRI R.LAKSHMI NARASIMHA RAO, HON’BLE MEMBER

                                     AND

SRI THOTA ASHOK KUMAR, HON’BLE MEMBER

MONDAY THE THIRTY FIRST DAY OF OCTOBER,

                             TWO THOUSAND ELEVEN

Oral Order:(Per Sri R.Lakshmi Narasimha Rao, Hon’ble Member)

***

1.     The Complaint is filed seeking direction to the opposite party to refund `30,00,000/- with interest @ 24% per annum together with damages of `1,00,000/- and costs of `10,000/-.  

2.     The averments of the complaint are that the complainant is a retired State Bank of India employee and he invested his retirement savings in real estate ventures floated by the opposite party for purchasing plots in the layouts, High Way Paradise & High Way Galaxy near Bhogapuram Village in Vizianagaram District.  The complainant entered into agreements with the opposite party on 18.11.2005, 25.1.2008 and 8.2.2008 whereby the complainant agreed to invest `30 lakh in the venture of the opposite party who in turn agreed to allot and register different plots in its ventures.  The complainant paid to the opposite party `30 lakh on different dates and obtained receipts to that effect.  The opposite party had registered four plots to the extent of 1130.16 sq.yards worth `6,79,000/- in favour of  the complainant.  The opposite party yet to register the plots worth `23,21,000/- in favour of the complainant.  The complainant approached the opposite party several times and requested him to register the plots for the remaining balance of money.  On 19.3.2009 the opposite party wrote a letter to the complainant promising to register the plots for the remaining amount on or before 30.4.2009 failing which he would refund `30 lakh with interest @ 24% per annum.  But till the date of filing of the complaint the opposite party neither did register the plots for remaining balance amount nor refund the amount.  The complainant got issued notice dated 2.4.2010 to the opposite party demanding to refund the amount of `30 lakh which on 6.4.2010 was received by the opposite party.  

3.     The opposite party had not chosen to contest the case. 

4.     The complainant has filed his affidavit and the documents Exs.A1 to A12.

5.     The counsel for the complainant has filed his written arguments.

5.     The point for consideration is whether the complainant is entitled to refund of the amount of `30 lakh and damages?

6.     The complainant had paid `30 lakh on various dates to the opposite party.  The complainant entered into an agreement with the opposite party on 18.11.2007, 25.1.2008 and 8.2.2008.  These agreements indicate allotment of plot Nos.2, 3, 5 and 18 in favour of the complainant and it was agreed that the sale deed would be registered within four months from the date of the agreements.  The opposite party has addressed letter dated 19.3.2009 acknowledging receipt of `30 lakh towards the sale consideration of the plot in Highway Paradise and Highway Galaxy and it was informed to the complainant that the sale deed would be executed on or before 30.4.2009 and on its failure to execute the sale deeds the opposite party assured the complainant that it would refund the amount of `30 lakh with interest @ 24% per annum from the date of receipt of final payment. 

7.     The opposite party had executed three sale deeds dated 21.5.2009 for a consideration of `2,42,000/- in respect of plot no.129, `1,73,000/- for plot no.130 and for a consideration of `2,64,000/- in respect of plot no.132 and 133.  The plot numbers that were allotted and mentioned in the agreements are different from those that have been sold under the sale deeds.  It is not the case of the complainant that the opposite party had allotted some plots and executed registered sale deeds in respect of  some other plots.  In the agreements of sale it has been specifically mentioned that the plot numbers would be changed subject to rules and regulations and approval of Directorate of Town and Country Planning. 

8.     The opposite party had received a sum of `30 lakh from the complainant towards consideration of the plots and it had executed sale deeds in respect of the plots worth `6,82,000/-.  The complainant is seeking refund of the entire amount `30 lakh paid by him towards consideration of plots.  Taking cue from the contents of the letter dated 19.3.2009 the learned counsel for the complainant has attempted to submit that the complainant is entitled for the refund of `30 lakh.  It is true the opposite party had mentioned in the letter that in the event of its failure to execute the sale deeds, it would refund the amount of `30 lakh with interest @ 24% per annum thereon. 

9.     The opposite party had executed the sale deeds in respect of plots bearing No.129, 130, 132 and 133 and the sale consideration of the plots is an amount of `6,82,000/-.  Therefore, the complainant cannot seek for the refund of the entire amount paid by him.  Deducting the amount of `6,82,000/- that was the sale consideration for the plots under the registered sale deeds, from the amount of `30 lakh paid by the complainant, the balance amount `23,18,000/- along with interest @ 24% per annum has to be refunded by the opposite party.  The interest is payable from the date of demand i.e., 2.4.2010 made by the complainant through the notice that was got issued on the aforementioned date. 

10.    In the result the complaint is allowed the opposite party is directed to refund the amount of `23,18,000/- with interest @ 24% per annum from 2.4.2010 till payment together with `2,000/- towards costs.  Time for compliance four weeks.

                                                                                   Sd/-

                                                                                MEMBER

                                                                                    Sd/-

                                                                                MEMBER

                                                                           Dt.31.10.2011

KMK*

                                 APPENDIX OF EVIDENCE

                                           WITNESSES EXAMINED

                                                              NIL

                                                EXHIBITS MARKED

For the complainant         

Ex.A1        Agreement dated 18.11.2007 between complainant
                and opposite  party

Ex.A2        Agreement dated 25.01.2008 between complainant
                and opposite  party

Ex.A3        Agreement dated 08.02.2008 between complainant
                and opposite  party

Ex.A4        Letter dated 19.3.2009 of O.P.

Ex.A5        Thirteen Receipts for Rs.30 lakh

Ex.A6        Copy of Sale deed dated 21.5.2009

Ex.A7        Copy of Sale deed dated21.5.2009

Ex.A8        Copy of Sale deed dated 31.8.2009

Ex.A9        Lawyers Notice dated 2.4.2010

Ex.A10       Letter dated 10.5.2010 to Post master

Ex.A11       Reply dated 19.5.2010 of Postmaster

Ex.A12       Brochure of High Way Paradise

For opposite party

NIL

                                                                                    Sd/-

                                                                                MEMBER

                                                                                    Sd/-

                                                                                MEMBER