DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, SAHIBZADA AJIT SINGH NAGAR (MOHALI)

Consumer Complaint No.428 of 2017

                                                            Date of institution:   19.06.2017                                                         Date of decision   :  10.05.2018

1.     Parvinder Kaur wife of Manvinder Singh.

2.     Manvinder Singh

        Both residents of House No.230, Phase-9,  SAS Nagar, Mohali.

…….Complainants

Versus

1.     Sky Rock City Welfare Society (Regd.), through its President Navjeet Singh, Sky Rock City Site Office 111-112, Near CGC College, Landran, SAS Nagar, Mohali.

2.     Navjeet Singh, President, Sky Rock City Welfare Society (Regd.), through its President Navjeet Singh, Sky Rock City Site Office 111-112, Near CGC College, Landran, SAS Nagar, Mohali.

……..Opposite Parties

Complaint under Section 12 of

the Consumer Protection Act.

Quorum:   Shri G.K. Dhir, President,

                Shri Amrinder Singh Sidhu, Member.

                Mrs. Natasha Chopra, Member.

Present:    Shri N.S. Jagdeva, counsel for the complainants.

                OPs ex-parte.

Order by :-  Shri G.K. Dhir, President.

Order

               Manjit Kaur wife of Ajit Singh became member of OP society in 2009-2010 and she paid an amount of Rs.1,35,000/- against the plot having total worth of Rs.10,12,500/-. Balance amount of Rs.9,77,500/- was paid by complainants in the name of Manjit Kaur and thereafter accounts were settled on issue of proper receipts by OPs. Details of payments are mentioned in the following table:

                Above said Manjit Kaur made up her mind to sell her share in the society and on evincing interest by complainants to purchase the same, premium of Rs.1.00 lakh was paid to one Tejinder Singh. OPs charged a sum of Rs.25,000/- as share transfer fee. Thereafter necessary documents were executed in the name of present complainants. Share certificate also was issued in the name of complainants. Complainants were allured by Manager of OPs as if they have all the necessary permissions obtained from Punjab Govt./GMADA for launching the project in question. As per assurance, possession was supposed to be delivered within two years from the date of registration. Complainants paid more amounts and the details of the total paid amount of Rs.14,02,500/- are as under:

                Complainants after visiting the project site got knowledge as if basic infrastructure facilities in the area even have not been completed. Development work was not complete on the spot and as such complainants found as if there is no object of keeping the money with the OP society. Large scale bungling of the accounts of the OP society even came to the knowledge of the complainants. The President of the OP society had been put behind bars after registration of criminal case against him. So by citing the provisions of PAPRA Act and by claiming that OPs adopted unfair trade practice, this complaint filed for cancellation of the allotment of Plot No.148, Sector 111-112 Mohali, but with direction to the OPs to refund the received amount of Rs.14,20,000/- with interest @ 18% till the date of refund. Compensation for mental harassment and agony of Rs.3.00 lakhs and litigation expenses of Rs.33,000/- more claimed.

2.             Though earlier Shri Jasdeep Singh Bhullar, Advocate filed memo of appearance on behalf of OPs, but subsequently none appeared for OPs and as such OPs were proceeded against ex-parte vide orders dated 02.11.2017.

3.             Complainants to prove their case tendered in evidence affidavit Ex.CW-1/1 alongwith documents Ex.C-1 to Ex.C-16 and thereafter closed evidence.

4.             Written arguments not submitted, but oral arguments heard and records gone through.

5.             Ex.C-1 shows deposit of an amount of Rs.25,000/- by complainant Parvinder Kaur with OP society, whereas Ex.C-2 is copy of application for transfer of booking No.2023 in favour of Parvinder Kaur. That request was submitted by Manjit Kaur. Affidavits Ex.C-3 and Ex.C-4 alongwith indemnity bond Ex.C-5 and copy of the affidavit Ex.C-5/A alongwith sale agreement Ex.C-6 are the documents produced on record to establish as if membership rights of plot of 150 sq. yards in Sector 111-112, Sky Rock City, SAS Nagar, Mohali stood transferred from the name of Manjit Kaur to name of Parvinder Kaur complainant. This transfer took place on filing of application for membership Ex.C-7 and it was thereafter that share certificate Ex.C-8 was issued in favour of complainants.

6.             Amount of Rs.5,000/- originally was deposited by Manjit Kaur through receipt Ex.C-8/A for becoming member, but amount of Rs.10,12,500/- as land cost was deposited by complainants with OPs through receipt Ex.C-9. Rs.10,000/- more were deposited by complainants with OPs through receipt Ex.C-10, whereas Rs.1,62,500/- deposited vide receipt Ex.C-11; Rs.1,52,500/- through receipt Ex.C-12 and another amount of Rs.65,000/- through receipt Ex.C-13. So this documentary evidence available on record certainly establishes as if amount of Rs.14,02,500/- in all has been deposited by complainants or their predecessor-in-interest with OPs.

7.             Complainants submitted request Ex.C-14 for cancellation of plot and refund of the paid amount of Rs.14,02,500/- with interest @ 18% per annum from the date of deposit till payment. This request was submitted by complainant because possession of the plot not handed over within stipulated period of two years from the date of registration/requisition. It is the case of complainants that OPs have not sought the requisite permission from concerned authorities and as such development of the project had not taken place. If development of the project has not taken place, then question of providing basic amenities like that of sewerage, water supply, electricity etc. does not arise. So certainly request of complainants for refund of the deposited amount is genuine and the same deserves to be allowed.

8.             As per condition No.4 printed on receipts Ex.C-8/A and Ex.C-10, but condition No.3 printed on Ex.C-9, C-11 and Ex.C-12, if the applicant does not want to continue even after paying some installments, then he will be refunded the entire amount with interest after one year or three years from the date of registration. In the first group of receipts it is mentioned that interest will be as per prevailing interest rates, but in the second set of receipts it is mentioned that interest payable will be @ 8% per annum. Period from which refund permissible is mentioned as one year from the date of registration in the first set of receipts, but same is mentioned as three years in the second set of receipts. Society in question is running on no profit no loss basis is a fact borne from copy of memorandum of society Ex.C-15. If that be the position, then refund of the amount should be ordered with interest @ 12% per annum from the date of seeking of refund for the first time. As that refund is sought for the first time through Ex.C-14 dated 16.11.2016 and as such refund of the entire received amount by OPs at rate of 12% per annum w.e.f. 16.11.2016 ordered. Allowing of this interest will be in consonance with conditions printed on receipts and also in accordance with principle of equitable consideration. As complainants suffered mental agony and harassment due to carrying of no development activity on the spot and as such complainants entitled to compensation for mental agony and harassment and also to litigation expenses.

9.             As a sequel of above discussion, complaint allowed with direction to OPs to refund the received amount of Rs.14,07,500/- with interest @ 12% per annum with effect from 16.11.2016 till payment. Compensation for mental harassment and agony of Rs.20,000/- and litigation expenses of Rs.5,000/-  more allowed in favour of complainant and against the OPs. Payment of these amounts of compensation and litigation expenses be made within 30 days from the date of receipt of certified copy of order.  File be indexed and consigned to record room.

Announced

May 10, 2018.

                                                                (G.K. Dhir)

                                                                President

                                                                             (Amrinder Singh Sidhu)                                                                     Member

(Mrs. Natasha Chopra)

Member