Andhra Pradesh

Visakhapatnam-II

CC/94/2013

Polukonda Babu Rajendra Vara Prasad - Complainant(s)

Versus

Raghavendra Constructions Builders and Property Developers - Opp.Party(s)

Pedada Suri Babu

05 Nov 2014

ORDER

                                              Date of Registration of the Complaint:29-04.2013

                                                                                                Date of Order:05-11-2014

BEFORE THE DISTRICT CONSUMERS FORUM-II AT

                             VISAKHAPATNAM

 

P  r  e  s  e  n  t:

1.  Sri H. Ananda Rao, M.A., L.L.B.,

     President           

2. Smt K. Saroja, M.A. B.L.,

     Lady Member 

                                3. Sri C.V. Rao,  M.A., B.L.,

                                     Male Member

 

                          Wednesday, the 5^th day of November, 2014.

                                 CONSUMER CASE No.94/2013

Between:-

Polukonda Babu Rajendra Vara Prasad,

S/o late Chalam Das, Hindu, aged 52 years,

Resident of Plot No.202, Lavanya Residenty,

N.G.G.O’s Colony, Akkayyapalem,

Visakhapatnam.

….. Complainant

And:-

Sai Raghavendra Constructions, Builders &

Property Developers, represented by its

Proprietor, Sri Talidevara Veera Venkata Satya

Sree Rama Krishna, S/o late Bhaskara Rao, situated

at GVK Towers, Opp: Krishnaveni Telent School,

Diamond Park, Visakhapatnam-16 and resident of

D.No. Flat No.201, Arvee Arcade Apartments,

Lawsons-bay-colony (post), Visakhapatnam.

                                                                                     …  Opposite Party 

                     

          This case coming on 19.10.2014 for final hearing before us in the presence of Sri P Suri Babu, Advocate for the Complainant and Sri D.N.S.G. & Sri K. Appa Rao, Advocates for the Opposite Party and having stood over till this date for consideration, this Forum made the following:

 

                                                ORDER

          (As per Sri. H. Ananda Rao, Honourable President, on behalf of the Bench)

 

1.       This consumer complaint is filed by the Complainant against the Opposite Party directing him to pay  a sum of Rs.9,00,000/- (Rupees Nine Lakhs only) with interest @ 24% p.a. from 07.08.2007 till the date of realization, and to pay a sum of Rs.2,00,000/- (Rupees Two lakhs only) towards damages, a compensation of Rs.1,00,000/- (Rupees One lakh only) and to pay costs of Rs.10,000/- (Rupees Ten thousand only).  

 

2.       The Opposite Party for the reasons best known to them did not resist the claim of the Complainant though they have put up their appearance in the beginning.

 

 3.      The case of the Complainant in brief is that the Opposite Party is dealing the business in the name and style of “SAI RAGHAVENDRA CONSTRUCTIONS”, builders and property developers which is a property concern and in pursuance of its business they offered to sale the flat bearing No.4 in the 2^nd floor in an extent of 35 Sq. yards of undivided and unspecified share out of total extent of 233.33 Sq. yards covered by Flat No.54 Survey No.12 of Maddilapalem with an oral promise to hand over the same by within one year for which offer the Complainant by believing the words of the Opposite Party/builder agreed for the same and started to make payment up to Rs.7,00,000/- from time to time ie., from 02.02.2007 to 12.12.2009 by way of cash, all the receipts issued in the name of the Complainant by the Opposite Party and there-after when demanded to hand over the flat and to register the sale deeds, the Opposite Party postponing the same on one pretext or the other and finally expressed his unwillingness to hand over the flat to him and promised to settle the account with interest and finally on his demand, the Opposite Party executed an agreement on 31.05.2012 which the Opposite Party has agreed to pay an amount of Rs.7,00,000/- and Rs.2,00,000/- towards interest in total of Rs.9,00,000/- within 3 months and also issued two cheques cash of Rs.4,50,000/- but till date, he did not pay the same and consequently, he came to know, he sold away the same to some others.    Hence, this Complaint.

 

4.       To prove the case of the Complainant, he filed his evidence affidavit and got marked Exs.A1 to A8.   On the other hand, no documents were marked on behalf of the Opposite Party.

 

5.       The Complainant filed written arguments.

 

6.       Heard.

 

 

 

7.       Now the point that arise for determination is:-

Whether there is any deficiency in service on the part of the Opposite Party and the Complainant is entitled for the reliefs of advance amount with interest, compensation damages and costs.

 

8.       The case of the Complainant in brief is that he paid an amount of Rs.7,00,000/- for the purchase of flat offered by Opposite Party and when he failed to register the Flat in his name finally on his request to settle the accounts with interest the Opposite Party executed an agreement on 31.05.2012  agreeing to pay an amount of Rs.7,00,000/- and Rs.2,00,000/- towards interest within 3 months and when he failed to comply the same, he had approached this Forum.

 

9.       In order to prove the case of the Complainant, he in his evidence affidavit filed Examination in Chief had sworn to the relevant contents of the complaint and his evidence affidavit is supported as Exs.A1 to A8.   Exs.A1 to A6 cash receipts issued by Opposite Party clearly and categorically goes to show the Opposite Party acknowledged the payment of receipts towards advance of the flat which was acquired by the Opposite Party, and they further go to show the total amount paid by the Complainant to the Opposite Party for an amount of Rs.7,000/-    Ex.A6 true copy of the agreement executed by the Opposite Party dated 30.05.2012,  further goes to show, the Opposite Party has agreed to pay an advance amount of Rs.7,00,000/- and Rs.2,00,000/- towards interest = total Rs.9,00,000/- within 3 months.   The evidence of PW-1 and exhibits clearly and categorically establish inspite of repeated demands made by the Complainant, the Opposite Party failed to repay the same.  There is no contra evidence to the evidence of Pw-1 therefore, it can be held that it is unchallenged.   In the circumstance, we hold that failure to refund the advance amount with interest is deficiency of service.   For these reasons the Complainant is entitled for Rs.9,00,000/- with interest thereon.

 

 

 

 

 10.    Now the question that comes up for consideration, at this stage of our discussion what is the rate of interest for which the Complainant is entitled.   The rate of interest claimed by the Complainant is 24% p.a.  This rate of interest claimed by the Complainant appears to be excessive, of course, it is a fact that the transaction covered by Ex.A1 is in commercial in nature, but that does not and cannot mean to say that the Complainant is a licenced to claim interest @ 24% p.a. on Ex.A1.    But at the same time, it is imperative on our part to award a reasonable interest.   Having regard to all these facts and circumstances, we sincerely feel having considered the case on hand awarding of interest @ 12% p.a. would better serve the ends of justice.    Consequently, we proposed to fix at rate in question @ 12% p.a. on Ex.A1 in question.   Accordingly interest is ordered.

 

11.     Whether the Complainant is entitled for compensation of Rs.1,00,000/- is to be considered.   It appears as seen from the evidence of PW-1 that the Complainant was compelled to approach the Opposite Parties and therefore experienced a lot of physical strain besides mental agony and financial loss. It is un-dispute fact that the Opposite Parties did not refund the amount subscribed by the Complainant.   Naturally that made have put the Complainant to suffer some mental agony besides physical stress and strain.   In this view of the matter, we sincerely feel that it is a fit case to award compensation.   But that does not and cannot mean to say that the Complainant claim for compensation is acceptable.    Having regard to all these facts and circumstances, we are of the considered opinion, award and compensation of 50,000/- would serve the ends of justice.   We therefore, proposed to award compensation of Rs.50,000 /-,  in the circumstances of the case on hand. Accordingly this point is answered.

 

12.     Before parting our discussion, it is incumbent and imperative on our part to consider the costs of litigation.    The Complainant ought not have to approach this Forum had his claim for refund of the sum of Rs.5,00,000/- or reliefs sought for have been honored by the Opposite Party within a reasonable time and in view of the matter, the Complainant’s claim for costs deserves to be allowed.   In our considered and unanimous opinion awarding a sum of Rs. 5,000/- as costs would appropriate and reasonable.   Accordingly costs are awarded.

 

13.     In the result, Complaint is allowed, in part directing the Opposite Party: a) to pay an amount of Rs.9,00,000/- (Rupees Nine lakhs only) with interest @ 12% p.a. from 30.05.2012 till the date of realization, and to pay b) a compensation of Rs.50,000/- (Rupees Fifty five thousand only) and c) Costs of Rs.5,000/- (Rupees five thousand only) to the Complainant.   Advocate fee is fixed at Rs.2,500/- (Rupees two thousand and five hundred only).   Time for compliance, one month.   The rest of the claim is dismissed.

 

     Dictated to the Steno, transcribed by him, corrected and pronounced by us in the Open Forum, this the 5^th day of November, 2014.

Sd/-                                                                                          Sd/-

Male Member                                                                         President

 

 

                             APPENDIX OF EVIDENCE

For the Complainant:-

NO.	DATE	DESCRIPTIONOFTHEDOCUMENTS	REMARKS
Ex.A1	02.02.2007	Cash Receipt No.136 for an amount of Rs.1,00,000/- issued by the OP in favour of the Complainant.	Original.
Ex.A2	16.08.2007	Cash Receipt No.181 for an amount of Rs.1,00,000/- issued by the OP in favour of the Complainant	Original
Ex.A3	30.08.2008	Cash Receipt No.168 for an amount of Rs.50,000/- issued by OP in favour of the Complainant	Original
Ex.A4	19.12.2008	Cash Receipt No.274 for an amount of Rs.30,000/- issued by the OP in favour of the Complainant	Original
Ex.A5	12.02.2009	Cash Receipt No.282 for an amount of Rs.20,000/- issued by the Op in favour of the Complainant	Oriinal
Ex.A6	31.05.2012	Agreement Sale Deed executed by between Complainant and OP	Notary copy
Ex.A7	01.04.2013	News Item Published in Andhra Jyothi pertaining to the OP Builder	Original
Ex.A8	25.09.2007	Cash Receipt No.199 for an amount of Rs.1,00,000/- issued by OP in favour of the Complainant	Original

 

For the Opposite Party:-                                             

                                      -Nil- 

Sd/-                                                                                          Sd/-            

Male Member                                                                        President