Andhra Pradesh

Visakhapatnam-II

cc/24/2012

Nadukuru Surya Prakash Rao - Complainant(s)

Versus

Rao & Rao Constructions - Opp.Party(s)

Bachina Rambabu

29 Nov 2014

ORDER

                                              Date of Registration of the Complaint:01-02.2012

                                                                                                Date of Order:29-11-2014

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

 

                          Saturday, the 29^th day of November, 2014.

                                 CONSUMER CASE No.24/2012

Between:-

Nadukuru Surya Prakash Rao,

S/o N.S.R. Murthy, aged 47 years, F-2,

Block-B, KBC Towers, Behind Annapurna

Theater, Margadarsi Road, Kurmannapalem,

Visakhapatnam.

….. Complainant

And:-

1.Rao & Rao Constructions, Rep. by its

   Managing Partner, P. Jagannadha Rao,

   D.No.43-17-17, 2^nd Floor, Near Yerukumamba

   Temple, Dondaparthi, Visakhapatnam-530 016.

2.Padarthi Jagannadha Rao, S/o Venkayya, aged 39

   years, Managing Partner of Rao & Rao Constructions,

   D.No.51-8-43/14, Sreenidhi Apartments, KRM Colony,

   Visakhapatnam.

                                                                                          …  Opposite Parties   

                     

          This case coming on 24.11.2014 for final hearing before us in the presence of Sri Rambabu  Bachina, Advocate for the Complainant and the Opposite Parties being exparte 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 Parties directing them to refund Rs.15,001, paid by him with interest @ 24% p.a. and to pay for compensation of Rs.3,000/- and Costs of Rs.3,000/-.

 

 

 2.      The case of the Complainant in brief is that the 2^nd Opposite Party is the Managing Partner of the 1^st Opposite Party doing construction business jointly and offered a flat of 1030 Sft. in the upcoming apartment under the name and style Sri Sai Sneha Residency to which he paid an amount of Rs.15,001/- towards flat booking in 3^rd floor and in token of the same a receipt was passed in his favour but failed even to commence the work of construction, as a result, he put to suffer financially.   Hence, this Complaint.

 

3.       The Opposite Parties, 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 through Advocate.

 

4.       To prove the case of the Complainant, he himself filed his evidence affidavit and got marked as Ex.A1.   On the other hand, on behalf of the Opposite Parties no documents were marked. 

 

5.       The Complainant filed written arguments.

 

6.       Heard.

 

7.       Now the points that arise for determination are:-

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

 

8.       The Complainant in his sworn evidence affidavit had sworn the relevant contents of the Complainant.   His evidence is supported by Ex.A1, the receipt passed by the 2^nd Opposite Party dated 7.8.2008 for Rs.15,001/-, evidencing the Complainant paid the said amount towards flat booking in 3^rd floor of Sri Sai Sneha Residency.   Ex.A1 clinches that the Opposite Parties have agreed to allot the flat in 3^rd floor Flat No.10 for Rs.15,001/- to the Complainant and the same was acknowledged by the Opposite Parties.   The evidence of PW-1 also established inspite of repeated demands made by the Complainant he is ready to perform his obligation, but the Opposite Parties did not come forward, as such, he filed the present Complaint.  It is evident as seen from evidence of PW-1 that his evidence is unchallenged and there was a clear deficiency of service on the part of the Opposite Parties, while performing their part.    Therefore, we hold that there was a clear deficiency of service on the part of the Opposite Parties as such the Complainant is entitled to receive the amount paid by him with interest thereon.

 

9.       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 @ 9% p.a. would better serve the ends of justice.    Consequently, we proposed to fix at rate in question @ 9% p.a. on Ex.A1 in question.   Accordingly interest is ordered.

 

10.     Whether the Complainant is entitled for compensation of Rs.3,000/- 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 of compensation of 1,500/- would serve the ends of justice.   We therefore, proposed to award compensation of Rs.1, 500 /-, in the circumstances of the case on hand. Accordingly this point is answered.

 

 

11.     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.3,000/- 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 claims for cost deserves to be allowed.   In our considered and unanimous opinion awarding a sum of Rs. 2,500/- as costs would appropriate and reasonable.   Accordingly costs are awarded.

 

12.     In the result, Complaint is allowed, in part directing the Opposite Parties to pay an amount of Rs.15,001/- (Rupees Fifteen thousand and one only) with interest  @ 12% p.a. from the date of payment till the date of decree and there-after @ 9% p.a. till the date of realization, and to pay a compensation of Rs.1,500/- (Rupees One thousand and five hundred  only) and costs of Rs.2,500/- (Rupees One thousand and five hundred only).  Advocate fee is fixed at Rs.2,500/- (Rupees two thousand and five hundred only).   Time for compliance, one month.  

 

     Dictated to the Steno, transcribed by him, corrected and pronounced by us in the Open Forum, this the 29^th day of November, 2014.

    Sd/-                                      Sd/-                                                   Sd/-

Male Member                      Lady Member                                     President

 

                             APPENDIX OF EVIDENCE

For the Complainant:-

NO.	DATE	DESCRIPTIONOFTHEDOCUMENTS	REMARKS
Ex.A1	07.08.2008	Receipt No.71 an amount of Rs.15,001/- issued by the 2nd OP in favour of the Complainant	Original.

For the Opposite Parties:-                                           

                                      -Nil- 

                                     

    Sd/-                                      Sd/-                                                   Sd/-

Male Member                       Lady Member                                     President