COMPLAINT FILED:27.07.2011

DISPOSED ON:11.01.2012.

BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM AT BANGALORE (URBAN)

11^th DAY OF JANUARY 2012

       PRESENT :-SRI. B.S.REDDY                  PRESIDENT                        

                         SRI.A.MUNIYAPPA                   MEMBER              

O R D E R

SRI. B.S.REDDY, PRESIDENT

The complainant filed this complaint U/s. 12 of the Consumer Protection Act of 1986 seeking direction against the Opposite Party (herein after called as O.P) to pay accrued interest at the rate of 24% p.a. on site deposit of Rs.18,000/- (i.e., interest calculated from the dates of payments till date Rs.1,06,200/-) and to pay compensation of Rs.10,000/-for mental agony and for costs of the proceedings on the allegations of deficiency in service on the part of OP.

2.         The brief averments made in the complaint are as follows:

        The complainant had applied for a site in the layout of OP in Hebbal-Kempapura, Bangalore North Taluk and paid total sum of Rs.18,000/- as site deposit in the following manner:

        On 23.09.1984 a sum of Rs.2,000/-, on 28.10.1984 a sum of Rs.1,000/-, on 31.08.1987 a sum of Rs.15,000/-. OP assured that the particular spot of site will be allotted within a period of 6 years from the date of first payment i.e., 23.09.1984, which meant the complainant had been allotted a site in the year 1990. But even as on the date there has been no information/intimation in respect of such promised site allotment to the complainant. On 08.01.2011 the complainant has approached the OP to refund the site deposit of Rs.18,000/- along with accrued interest, since he is not keeping good health and he assured after the allotment of site in his favour he will pay full site deposit amount. On 07.04.2011 OP has refunded the site deposit amount of Rs.18,000/- only to the complainant and not given accrued interest. Hence the complainant has issued a legal notice on 20.06.2011 calling upon OP to pay interest at 24% p.a. on the site deposit amount from the date of deposit amount paid by the complainant i.e., Rs.1,05,840/- within 15 days from the date of receipt of the notice. OP has given very strange reply stating that Society byelaw does not have any provision for payment of interest on site deposit.  The non-payment of accrued interest is a deficiency in service. The OP is bound to pay interest at the rate of 24% p.a. on the said deposit amount of Rs.18,000/-. Hence the complaint.

3.   On appearance OP filed version contending that the complainant has deposited an amount of Rs.18,000/-towards site deposit, OP allots the sites on the basis of seniority in the layout formed by it. It is denied that the OP has assured the complainant that the particular site will be allotted within a period of 6 years from the date of first payment. It is admitted that the complainant approached OP for the refund of the amount deposited. But it is incorrect to state that OP assured to refund the amount together with interest. The complainant voluntarily agreed to receive the refund unconditionally. He has received the amount without any protest. In the letter dt.07.01.2011, the complainant had sought for refund of the deposit amount on the ground of his ill health and further he stated that he would repay the same after allotment of the site. This shows that the complainant wanted refund of the deposit amount for sake of health. Now he wants interest, which is unsustainable. OP has replied to the legal notice of the complainant suitably. The complainant and all the members are bound by the byelaws of the Society. The OP society is not a commercial organization and functions on the basis no loss, no gain. It is body of the members who collectively work for acquiring the lands for the residential layout and entitlement of the site on seniority basis. The Deposit made in housing Co-operative societies does not amount to an investment so as to attract the interest. Hence it is prayed to dismiss the complaint with costs.

4.In order to substantiate complaint averments, the complainant filed affidavit evidence. The Secretary of the OP filed affidavit evidence in support of the defence version and produced documents.

5. The complainant filed written arguments and produced the orders passed in other complaints awarding interest on the amount refunded.

6. Arguments on both sides heard.

7. Points for our considerations are:

   Point No.1:- Whether the complainant proved the        

                       deficiency in service on the part of

                          the OP?

 Point No.2:- Whether the complainant is entitled

                 for the reliefs now claimed?

   Point No.3:- To what Order?

8. We record our findings on the above points:

  Point No.1:-Affirmative.

Point No.2:-Affirmative in part.

Point No.3:- As per final Order.

R E A S O N S

9. At the out set, it is not in dispute that the complainant became member of OP society vide membership No.1009.   OP is a registered co-operative society engaged in acquiring the lands for the purpose of formation of the layouts and allots sites to its members.    The complainant deposited an amount of Rs.2,000/- on 23.09.1984, Rs.1,000/- on 28.10.1984 and Rs.15,000/- on 31.08.1987 in all Rs.18,000/- towards the cost of the site proposed to be formed in Hebbal-Kempapura, Bangalore North Taluk.  The complainant claims that OP assured to allot the site within 06 years maximum from the date of first payment i.e. 23.09.1984, but OP has failed to fulfill its obligation in allotting the site.   On 08.01.2011 the complainant approached OP requesting to refund the deposited amount of Rs.18,000/- with accrued interest, OP only refunded the deposited amount without interest, as such the complainant is seeking for interest at 24% p.a. on the said deposit amount.   

10. The Learned Counsel for the OP contended that the sites are to be allotted on the basis of seniority, the complainant has received the deposit amount on the health ground with an undertaking to redeposit the same after allotment of the site.    The bye-laws of the OP society does not provide for payment of interest.   The site deposit is not an investment to earn any interest.  The proceedings of General Body produced in respect of the meeting held on 26.09.2010 provides the new layouts proposed to be formed and the Notifications are issued to the members informing the proposed new layout to enable to deposit the amounts.    Thus it is contended that the complainant is not entitled for the interest for the amount refunded, there is no deficiency in service on the part of the OP.

11. It may be noted that in case there is no any layout formed by acquiring any land, OP society could not have accepted the sital deposit from its members. The complainant has deposited an amount of Rs.3,000/- in the year 1984 and further sum of Rs.15,000/- in the year 1987 in all Rs.18,000/-.    When OP was not able to form any layout and allot the site to the complainant, it could have been fair on its part to refund that amount earlier itself, instead of making the complainant for apply for refund of the same.   Merely because the bye-laws of the OP society does not provide for payment of interest, OP cannot escape the liability.   Had the complainant invested this amount of Rs.18,000/- for purchasing site in other project he would have got the same allotted or if he has invested the same amount in some other scheme he could have got good returns on the amount.    Taking into consideration all these facts and circumstances, we are of the view that the act of OP in not forming any layout and allotting a site to the complainant nor paying reasonable rate of interest on the amount refunded, amounts to deficiency in service.    In other complaints of similar nature, this Forum awarded reasonable interest on the sital deposit while ordering refund of the amount.  The copies of the orders produced in complaint No.2506/2009, 443/2010, 444/2010, 1549/2009 and connected complaints goes to show that interest at the rate of 9% p.a. has been awarded.    Under these circumstances we are of the view that OP is to be directed to pay interest at the rate of 9% p.a. on the refunded amount of Rs.18,000/- from the date of respective deposits till the date of refund along with litigation costs of Rs.2,000/-.   Accordingly, we proceed to pass the following:

O R D E R

        The complaint filed by the complainant is allowed in part.

OP is directed to pay interest at 9% p.a. on the refunded amount of Rs.18,000/- from the date of respective payments, till the date of refund and pay litigation cost of Rs.2,000/- to the complainant.

This order is to be complied within four weeks from the date of this order.

        Send copy of this order to both the parties free of costs.

 (Dictated to the Stenographer and typed in the computer and transcribed by her verified and corrected, and then pronounced in the Open Court by us on this the 11^th day of January-2012.)     

MEMBER                                                     PRESIDENT

Cs.