Petitioner was the opposite party before the District Forum.

          Complainant/respondent on the basis of an advertisement issued by the petitioner had applied for allotment of a flat type B on 24.08.1986.  He paid Rs.10,575/- towards earnest money.  The complainant/respondent was allotted flat type B under the said scheme as per letter dated 6.11.1986 and was directed to pay nine

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quaterly installments of Rs.10,575/- each starting from 09.12.1986 ending on 09.12.1988.  He paid all the installments.  As per the terms and conditions of the offer, the complex was to be completed by December, 1988 but the same was not completed till the filing of the complaint i.e. even after lapse of 5 years and possession was not given.  Complainant/respondent then received a letter dated 08.12.1993 from the petitioner by which the petitioner demanded an additional amount of Rs.93,906/- towards the additional cost of the flat.  Further vide letter dated 10.11.1993, petitioner demanded an additional amount of Rs.12,907/-.  Respondent was charged interest @ 18% for the delayed payment.    Aggrieved by this, Complainant filed the complaint before the District Forum.

          District Forum disposed of the complaint in the following terms:-

“Respondents will, therefore, calculate the interest on the deposited amount of the complainant @ 18% p.a. from the date of deposit by which the possession was expected till the date of delivery of possession is offered to him and give credit of the same to the complainant

against the escalated amount demanded and on payment of balance, if any, expedite the delivery of possession of the flat to the complainant.”

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          Petitioner being aggrieved filed the appeal before the State Commission which modified the order of the District Forum in the following terms:-

“Therefore, the appeal of the appellant is only allowed to this extent that the respondent/complainant shall be entitled for interest at the rate of 18% p.a. w.e.f. 1.1.90.”

          Petitioner, thereafter, filed the revision petition before this Commission which was dismissed by a short order on 28.09.2001 by observing thus:

“In view of our order in the case of Haryana Urban Development Authority vs. Darsh Kumar (revision petition 1197 of 1998), where we have upheld the award of interest even at the rate of 18% per annum, in similar circumstances, this revision petition is, therefore, dismissed.”

Petitioner being aggrieved filed an Appeal before the Supreme Court.  Supreme Court, taking note of the fact that subsequently, the order in Darsh Kumar’s case (supra) was reversed/modified in Haryana Urban Development Authority V. Darsh Kumar & Ors. (2005) 9 SCC 499 by reducing the rate of interest from 18% to 12%,

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allowed the appeal and remitted the case to this Commission for a fresh decision.  Supreme Court while granting leave on 13.12.2002 had made it clear that the interim order was confined to the order of interest in excess of 12%.  The appeal was admitted by the Supreme Court with regard to interest above 12% meaning thereby that the interest @ 12% was payable.

In view of the subsequent judgment of Supreme Court in Haryana Urban Development Authority V. Darsh Kumar & Ors. (2005) 9 SCC 499 we reduce the rate of interest from 18% to 12%. 

Subject to the modification indicated above, this revision petition is dismissed.