Date of Filing: 18.06.2008<br /> Date of Order:31.10.2008<br /> <br /> <br /> <br /> BEFORE THE II ADDITIONAL DISTRICT CONSUMER DISPUTES REDRESSAL FORUM SESHADRIPURAM BANGALORE-20<br /> <br /> Dated: 31ST DAY OF OCTOBER 2008<br /> PRESENT<br /> Sri. S.S. NAGARALE, B.A, LL.B. (SPL.), President.<br /> Smt. D. LEELAVATHI, M.A.LL.B, Member.<br /> Sri. BALAKRISHNA. V. MASALI, B.A, LL.B. (SPL.), Member.<br /> <br /> COMPLAINT NO: 1362 OF 2008<br /> <br /> Deepakpuri,<br /> S/o Late Ranbir Singh,<br /> R?o No. 406/2, ‘G’ Block, <br /> New Alipore, Kokatta-700 053. Complainant<br /> <br /> V/S<br /> M/s Corporate Leisure Resorts <br /> Avenue & Hotels Pvt. Ltd.,<br /> Having its office at:<br /> <br /> 1. No.101, Voctorian Avenue,<br /> 13th Cross, 6th ‘D’ Main,<br /> Indiranagar II Stage, <br /> Bangalore-560 008.<br /> <br /> 2. No.601, Oxford House, <br /> 15, Rustam Bagh Main Road, <br /> Off: Airport Road, <br /> Bangalore-560 017.<br /> <br /> 3. No.112, Ground Floor,<br /> Oxford Towers, 139, Airport Road, <br /> Bangalore-560 017.<br /> <br /> Represented by its Director<br /> Sri Govindachari and <br /> Sri. Sanjeev Kumar. Opposite Parties<br /> <br /> ORDER<br /> By the President Sri. S.S. Nagarale<br /> <br /> This is a complaint filed under Section 12 of the Consumer Protection Act 1986 to direct the opposite parties to develop Oxford Hermitage situated at Gonighattapura village, Sarjapura Hobli, Anekal Taluk and to execute register the sale deed in respect of site No. 41 measuring 100 X 80 feet in the said layout, compensation of Rs.20,00,000/- and costs. <br /> The brief facts of the case are that the opposite party is a company registered under the Companies Act had assured that the layout with internal road, water connection to each site, electricity connection, Lake Club House and even some trees planted on each site, would be completed within one/two years from the date of first payment, immediately after which the sale deed would be executed. The complainant paid initial deposit of Rs.25,000/- vide DD No. 780369 dated 17.12.1994 drawn on oriental Bank of Commerce and the balance amount of Rs.1,75,000/- was paid vide DD No.248061 dated 20.10.1995 drawn on United Bank of India. The complainant totally paid Rs.2,00,000/- towards the full and final payment as the sale consideration for site No.41. This was confirmed by the opposite party. The opposite party failed to develop the layout as promised. One sample house was also constructed at the site and allottees were made an offer for getting house at an additional cost. The opposite parties wrote a letter to the complainant on 9/1/1998 and confirmed that full payment had been received by them. However, the project had still not been completed and they assured that it would be completed within a very short time. The complainant also received a letter from M/s Navin Architects stating that, we have planned the complete layout for the ‘Oxford Hermitage’ spread over 250 acres. As an esteemed owner of a site at the ‘Oxford Hermitage’, we understand that you are aware of the six model designs of cottages that the ‘Oxford Hermitage’ brochure has to offer to the buyers’. They offered their service in getting houses constructed by them. The complainant did not respond to them as development of the layout was nowhere near complete. Number of letters were exchanged between the complainant and the opposite party confirming the receipt of full payment for the site and asking for Club Registration fee of Rs.1001/- and maintenance charge of Rs. 10,000/-. However the layout had not been developed and this letter was only a ploy to extract more money. The complainant contacted the opposite party through his advocate to clarify the position about these extra charges demanded by the opposite party and to find out when the layout would be developed and the site registered in favour of the complainant but could not get any answer. The complainant has made innumerable calls to the opposite party directly, as well as through friends requesting them to complete the development and get the site registered. However the layout was still not developed and the opposite party was avoiding the complainant or even receiving calls. It appears that even though full payment had been made, the opposite party was not developing the Oxford Hermitage and that the money received on this account, had been diverted to other projects. It is pertinent to note that complainant has paid the full consideration but the opposite party despite repeated requests and personal talks has not come forward to develop the layout. Hence, the complaint.<br /> 2. Notice was issued to opposite party. Opposite party was put in appearance through advocate and defence version filed stating that the opposite party is a reputed company engaged with developmental activities of lands for residential and non-residential purposes. The opposite party has successfully completed many projects and maintained good report with its customers and also in the market. It is true that the complainant is one of the allottee of the site No.41, measuring 100 X 80 feet in the layout called Oxford Hermitage. The opposite party explained about the acquisition of agricultural lands situated in sy Nos. 55, 65, 74, 75 and 93 of Gongigattapura village, Sarjapura Hobli, Anekal Taluk and about necessary procedures for conversion from agricultural land to residential land and charges for doing so would be done by the opposite party. It is true that the opposite party had executed indenture of sale dated 8th June-2002. The opposite party called the complainant to register the property and send the amounts, which needs to incur by the complainant for getting the property registered. The opposite party had also requested the complainant to pay the membership fee and maintenance charges. The complainant himself has failed to perform his part of the contract by paying the outstanding amounts to get the plot registered and as such the complainant is not entitled for any relief. Thereafter on 7/4/1999 the opposite party has written a letter to the complainant intimating about the improvements of the project and also intimated to pay the necessary charges and also intimated the complainant that we would like to stress that all pending balances of Rs.11,001/- should be cleared and get the plot registered immediately. But the complainant neither bothered to pay the necessary charges nor replied to the letter dated 7/4/1999. In the present situation the land in question cannot be registered, since it is comes under the jurisdiction of BMRDA. Hence, the opposite party is not in a position to give the site to the complainant nor the complainant is entitled for refund of the amount. However, on humanitarian grounds the opposite company undertakes to reimburse the amounts paid by the complainant towards full and final settlement by canceling the entire dealing with the complainant. Even the opposite party company is ready to execute registered sale deed, the complainant has failed to register the same and he has not paid the proper registration fee for the registration and necessary charges. It is true that the complainant has paid initial deposit of Rs. 25,000/- vide DD No.780369 dtd: 17/12/1994 and the balance amount of Rs.1,75,000/- was paid vide DD No. 248061 dtd: 20/10/1995. Once again the opposite party company has sent a letter dtd: 29/1/1998 and also on 6/2/1998 and also on 15th April-1998 intimating the complainant that the site was ready for registration and also intimated about the membership of the club and its charges and also intimated to the complainant that “ any delays will only enhance the extra costs to the company and with the present condition it is not possible for us to bear any additional expenses” by letter dtd: 15th April-1998, but the complainant failed to do the same. In view of all these reasons stated above, the opposite party prayed to dismiss the complaint. <br /> 3. Affidavit evidence of both the parties filed. Arguments are heard.<br /> 4. The points for consideration are:-<br /> <br /> 1. Whether the opposite party can be directed to refund the amount of Rs.2,00,000 with interest?<br /> <br /> 2. To what order? <br /> <br /> REASONS<br /> <br /> 5. I have gone through the various documents produced by the parties. The opposite parties have given a letter on 30/1/1997, is marked at Ex.P-11. As per this letter the opposite parties have admitted that the complainant has paid total amount of Rs.2,00,000/- by way of D.D. D.D dated 17/12/1994 for Rs.25,000/- was paid and an amount of Rs.1,75,000/- was paid through D.D dated 20/10/1995. The opposite party Finance Director, Govindachary has given another letter dated 09/01/1998 is marked as Ex.P.12. By this letter also they have admitted the receipt of Rs.2,00,000/- from the complainant in respect of plot No.41 measuring 8000 square feet called Oxford Hermitage. The opposite party Finance Director has given another letter on 29/01/1998 to the complainant. By this letter also the opposite party has admitted that complainant has paid Rs.2,00,000/-. This letter is marked as Ex.P-14. The opposite party executed indenture of sale. It is marked as Ex.P.1. Legal notice copy is produced and it is marked as Ex.P-8. Therefore, there is absolutely no dispute in respect of payment on Rs.2,00,000/- made by the complainant to the opposite party. On behalf of the opposite party, Govindachary the Director has filed his affidavit. In the affidavit he has submitted that in the present situation the land in question cannot be registered since it comes under the B.M.R.D.A and opposite party company is not in a position to give the site to the complainant. However, the opposite party company submitted that it undertakes to reimburse the amount paid by the complainant towards full and final settlement by canceling the entire dealing with the complainant. The complainant was also present at the time of hearing of the matter. He is from Kolkatta. The complainant also submitted that he is ready to take back the amount with interest and compensation on account of escalation of prices of sites. The complainant has paid Rs.25,000/- under D.D dated 17/12/1994 and he has given another D.D for Rs.1,75,000/- dated 20/10/1995. The opposite party having utilised the amount for such a long period and the opposite party is not in a position to allot the site as promised. It is common knowledge and judicial note can be taken that prices of the plots in and around Bangalore have abnormally gone high. There is lot of price escalation and appreciation of the plots. It is very difficult for a common man to get a site for a reasonable price now a day. Therefore, naturally the complainant shall have to be compensated by way of granting interest on the amount paid by him and also some amount as token compensation due to the escalation and appreciation of prices of plots. The Hon’ble National Commission and Hon’ble State Commission are awarding interest at 18% p.a on the amount to be refunded to the respective complainants in various cases of similar nature. Therefore, awarding or grant of interest at 18% p.a in this case is also quite just, fair and reasonable. Apart from grant of interest, I feel it would be proper and just to award Rs.50,000/- as compensation to the complainant since the company was not able to allot the site and register the same. The complainant sought Rs.20,00,000/- as compensation against the opposite party. I feel this is an exaggerated amount claimed by the complainant. On the facts and circumstances of the case and taking into consideration of all the documents and pleadings of the parties and the submissions made by the learned Advocates for the parties, I feel the ends of justice will be met in awarding Rs.50,000/- as compensation due to escalation of prices of plots. In the result, I proceed to pass the following:-<br /> ORDER<br /> <br /> 6. The complaint is allowed. The opposite parties are directed to refund Rs.2,00,000/- to the complainant. The complainant is entitled to interest at 18% p.a on Rs.25,000/- from 17/12/1994 and on Rs.1,75,000/- from 20/10/1995(from the date of respective payments) till payment/realisation. <br /> 7. The opposite parties are directed to pay Rs.50,000/- as compensation to the complainant apart from the above amount. <br /> 8. The complainant is also entitled for Rs. 5,000/- towards costs of the present proceedings from the opposite parties.<br /> 9. The opposite parties are directed to comply the order within 30 days from the date of communication of this order. <br /> 10. Send the copy of this Order to both the parties free of costs immediately. <br /> 11. Pronounced in the Open Forum on this 31ST DAY OF OCTOBER-2008. <br /> <br /> Order accordingly,<br /> <br /> PRESIDENT<br /> We concur the above findings. <br /> <br /> MEMBER MEMBER <br /> <br /> Rhr<br />