Complainant – Sh. Devendra Kumar Goel is present in person.
Sh. K.K. Goyal, Advocate is present on behalf of opposite party No. 1 – M/s Idea Promoters & Developers.
Sh. Rajeev Kumar Garg, Partner, M/s Idea Promoters & Developers – opposite party No. 1 is also present in person.
None is present on behalf of opposite party No. 2 – L.I.C. Housing Finance Limited inspite of sufficient service.
During the course of arguments, the parties have arrived at an amicable settlement. Opposite party No. 1 has agreed to repay the amount which was paid by the complainant to the opposite party No. 1, amounting to Rs. 28,26,000/- for purchase of the villa cum house bearing No. 76, Blue Bell Residency, mostly known as Idea Colony, Kitcha Road, Near Lalpur, Rudrapur, District Udham Singh Nagar. The opposite party No. 1 has also agreed to pay simple interest @16% p.a. thereupon in lieu of compensation / damages for mental agony and harassment and escalation in costs of construction.
Opposite party No. 1 has moved an application to the above effect and has also submitted that direction be given to the complainant to obtain No Objection Certificate from opposite party No. 2 within 15 days’ from the date of payment of Rs. 10,00,000/- by the opposite party No. 1, which amount was to be deposited with the opposite party No. 2 against the loan amount and that if further time beyond 15 days’ is consumed by the complainant in obtaining No Objection Certificate from opposite party No. 2, the opposite party No. 1 would not be liable to pay interest for that delayed period.
The complainant has also moved an application today as well as on previous date that he is agreed to the terms and conditions of the compromise offered by opposite party No. 1. The complainant has requested that the opposite party No. 1 be directed not to deduct any TDS on the interest amount payable to the complainant, as the interest has been awarded in lieu of compensation / damages for mental agony and harassment and escalation in costs of construction, as has been pronounced by the Hon’ble Apex Court, Hon’ble National Commission as well as State Commission in the decisions cited before us, which are as under:
- Decision dated 24.09.2004 of the Hon’ble Apex Court given in Appeal (Civil) No. 5582 of 2002; Haryana Urban Development Authority Vs. Mrs. Raj Mehta.
- Decision dated 18.09.2002 of the Hon’ble National Commission given in Revision Petition No. 2244 of 1999; G.D.A. Vs. Dr. N.K. Gupta.
- Decision dated 12.09.2014 of State Consumer Disputes Redressal Commission, U.T., Chandigarh given in Execution Application No. 36 of 2014; Dr. Anil Goel and another Vs. Parsvnath Developers Limited and others.
In the above decisions, it has been held that award of interest by way of compensation is not interest as defined in Section 2(28-A) of the Income Tax Act, therefore, Section 194-A of the Income Tax Act would not be applicable.
In view of above, the consumer complaint is allowed in terms of the compromise arrived between the parties, which shall form part of this order, in the following terms:
- The opposite party No. 1 is directed to refund sum of Rs. 28,26,000/- to the complainant together with simple interest @16% p.a. from the date of deposit till payment. Out of this amount of Rs. 28,26,000/-, sum of Rs. 10,00,000/- will be paid by the opposite party No. 1 to the complainant within a period of 15 days’ from the date of this order, which he shall deposit with the opposite party No. 2 towards the loan taken by him and obtain No Objection Certificate from the opposite party No. 2 and will submit the said No Objection Certificate with the opposite party No. 1 within a period of 15 days’ thereafter.
- Opposite party No. 1 is further directed to pay the remaining amount of Rs. 18,26,000/- together with interest as well as interest on Rs. 10,00,000/- of previous period within a period of two months’ from the date of submission of No Objection Certificate by the complainant with the opposite party No. 1.
- In case the No Objection Certificate is submitted by the complainant with the opposite party No. 1 beyond a period of 15 days’, the complainant will not be entitled to interest for that delayed period in submission of No Objection Certificate by him.
- Simple interest @16% p.a. has been awarded to the complainant in lieu of compensation / damages for mental agony and harassment and escalation in costs of construction and hence in view of the decisions quoted above, the opposite party No. 1 shall not deduct any TDS on the amount of interest found payable to the complainant. However, as per the written undertaking given by the complainant, if any liability of income tax is accrued on the said amount, the said liability will be discharged by the complainant along with interest and penalty, if any.
- The parties shall bear their own costs of the proceedings.
