19.06.2024:

ORDER

Delivered by Mr.K.B.Sangannanavar. Prl.DJ (R) Judicial Member.

01.   This is an Appeal filed by the opposite party in C.C. No.48/2017 on the file of District Consumer Disputes Redressal Forum, Mysore, aggrieved by the order dated: 13.10.2017.

02.   The Commission examined the grounds of Appeal, Impugned order, Appeal papers and heard.

03.   Now the point that arise for consideration of this Commission would be:

“Whether the impugned order dated: 13.10.2017 passed in CC No.48/2017 does call for any interference of this Commission for the grounds set out in the Appeal Memo?”

04.   One Smt. Sowbhagyamma, had raised a consumer complaint seeking refund of Rs.2,00,000/- along with interest at the rate of 18% per annum from the date of deposit till realization and sought for compensation and litigation cost.  The OP contested the complaint contending, complainant had applied for allotment of a site measuring 60’ x 40’ sq. ft. OP admits payment of Rs.2,00,000/- by paying through cheque in two installments drawn at Karnataka Bank Limited on 21.12.2010 and 21.08.2011.  However complainant has not paid the next installment to the OP despite  intimation given to her and the OP is ready to give the site after formation of the layout to its member  including the complainant.  In view of the rival contentions of the respective parties the District Forum held an enquiry and directed the OP to refund Rs.2,00,000/- along with interest at the rate of 18% per annum from the date of respective deposits made by the complainant till payment and directed to pay Rs.10,000/- towards compensation and Rs.2,000/- towards litigation expenses within 30 days, failing which the OP shall pay interest at 12% per annum on such amount.  It is this order is assailed in this Appeal contending that, the District Forum had failed to appreciate the records in detail and the contention of OP that  is ready to pay the principal amount was not considered. Further submits that   the interest awarded at 18% per annum is exorbitant interest.  It is also submitted that the District Forum could have refunded only the principal amount since complainant has failed to pay the remaining installments.  Admittedly complainant having been enrolled as member of the  OP’s society had paid Rs.2,00,000/- seeking allotment of site measuring 40’ x 60’ sq. ft.  It has come in the enquiry that, amount was paid during 2010 and this complaint was raised during 2017, yet OP had failed either to allot site or refund the amount. In other words withheld the amount for number of years, as such could have utilized the amount for the development of the society in other form and which could have also been escalated in racket speed in the recent past.  As such we are of the view that, District Forum has rightly directed the OP to refund Rs.2,00,000/- but awarding interest at the rate of 18% per annum has to be held an exorbitant which has to be reduced to 12% per annum considering the fact that in the recent past bank rates have been drastically reduced. We have also to take notice of the fact that had this amount could have been invested complainant could have got a site in which could have built his dream house.  Hence,  we are of the view impugned order needs modification.  Accordingly, we proceed to allow the Appeal. Consequently order to modify the impugned order dated: 13.10.2017 in the following terms:

          The OP is directed to refund Rs.2,00,000/- along with interest at the rate of 12% per annum from the date of deposits made by the complainant till realization and do pay a sum of Rs.10,000/- towards compensation and Rs.5,000/- towards litigation cost within 60 days,  failing which this amount  shall carry interest at the rate of 8% per annum from the date of default   till realization.

05.   Send copy of the order to the District Commission as well to the parties to the appeal.

           Sd/-                                                        Sd/-

LADY MEMBER                             JUDICIAL MEMBER  

KNMP*