Karnataka

Kolar

CC/09/10

N.Rathnamma - Complainant(s)

Versus

The Commissioner, - Opp.Party(s)

N. Srinivasa Gowda

10 Aug 2009

ORDER


THE DISTRICT CONSUMAR DISPUTES REDRESSAL FORUM
No.419, Ist Floor,. H.N. Gowda Building, M.B.Road, Kolar-563101
consumer case(CC) No. CC/09/10

N.Rathnamma
...........Appellant(s)

Vs.

The Chairnman
The Commissioner,
...........Respondent(s)


BEFORE:


Complainant(s)/Appellant(s):


OppositeParty/Respondent(s):


OppositeParty/Respondent(s):


OppositeParty/Respondent(s):




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ORDER

CC Filed on 03.02.2009 Disposed on 18.08.2009 BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, KOLAR. Dated: 18th day of August 2009 PRESENT: Sri. G.V.HEGDE, President. Sri. T.NAGARAJA, Member. Smt. K.G.SHANTALA, Member. --- Consumer Complaint No. 10/2009 Between: N. Rathnamma, W/o. N. Channakeshava Gowda, Aged about 45 years, Bangavadi Village, Kasaba Hobli, Srinivasapur Taluk, Kolar District. (By Advocate Sri. N. Srinivasa Gowda and others ) V/S 1. The Commissioner, Kolar Urban Development Authority, 2. The Chairman, Kolar Urban Development Authority, Office situated at Kumbarpet, Kolar Town, Kolar. (By Advocate Sri. P.N. Krishna Reddy and others ) ….Complainant ….Opposite Parties ORDERS This is a complaint filed under section 12 of the Consumer Protection Act, 1986 praying for a direction against the opposite parties to allot a residential site measuring 30 X 40 feet formed by OP by receiving the balance consideration of the site or to return the deposited amount of Rs.12,540/- with interest at 8% p.a. from the date of deposit till the date of realization and to pay Rs.50,000/- as damages for mental agony. 2. During the proceedings, the complainant has not pressed the allotment of site and prayed for return of the deposit with interest and damages. 3. The material facts for the disposal of the case may be stated as follows: That in pursuance of a Notification dated 15.05.1999 issued by Kolar Urban Development Authority (Opposite Parties) the complainant deposited Rs.12,540/- for allotment of 30 X 40 feet in her name on 14.02.2000, apart from paying the required registration fee of Rs.500/-. Under the said Notification, KUDA had called for applications from public for allotment different dimension of sites at a place called Kodikannur adjacent to Srinivaspur Road in the outskirt of Kolar Town. The record produced by OPs show that the acquisition proceeding was dropped by D.C. as the OPs failed to pay the required amount, to take further steps for acquisition. The dropping of acquisition proceedings had taken place on or before 18.03.2003. The complainant has alleged that inspite of several approaches the OPs failed to return the deposit of Rs.12,540/-. On the other hand the OPs have contended that after dropping of the acquisition proceedings they returned the deposits, those who have come and asked for return of the deposits and the complainant had not approached them requesting for return of deposit. Further they contended that as per the conditions 10 and 11 of the Notification, they are not liable to pay any interest on the deposit amount. On 25.02.2009 the date on which OPs appeared through Counsel in this proceedings, they tendered cheque for Rs.12,540/- in favour of complainant and the complainant received the same without prejudice to her rights to claim interest on it. Therefore in the present case the question that arises for consideration is whether OPs shall be liable to pay interest on the deposit or not. On consideration of the affidavits filed by parties and the materials on record, we hold that the OPs are liable to pay the interest on the deposit for the following reasons: Condition No.10 of the Notification states that on the amount of deposit no interest will be paid. Condition No.11 states that after allotment of the sites the deposit will be returned to such of the depositors to whom sites are not allotted. 4. The OPs came to know that the acquisition proceedings initiated for acquiring the land for formation of layout, was dropped on or about 18.03.2003. Therefore there was no question allotment of sites to any depositors. As per condition No. 11 of the Notification, from that date the OPs were bound to return the deposit amount to such of the deposit holders who were not allotted any sites. It was their duty to send a cheque or draft for the amount deposited by different depositors. For that purpose the depositors need not have approached OPs making any enquiry. For that deficiency by OPs atleast they are liable to pay interest at 8% p.a. on the amount deposited from 18.03.2003. The OPs are governed by the Karnataka Urban Development Authorities Act, 1987 and the Rules framed there under. The perusal of the provisions in the said Act and the Rules made there under, shows that the OPs could have called for application from public for allotment of sites only when the layout was laid and the sites were ready for allotment. In the present case, it appears even before acquisition proceedings for acquiring the land for formation of the layout, the OPs called for applications for allotment of sites from public and received the deposits and registration fee. This approach clearly appears to be not in accordance with the spirit of the provisions of the said Act and Rules. The Act or the Rules do not provide for accumulating funds to meet the expenses of formation of layout. Therefore we hold that collecting deposits even before finalization of acquisition proceedings is illegal. For this reason also they are bound to pay the interest on the deposits received by them. As interest is being awarded we think separate compensation for mental harassment need not be awarded. 5. Hence we pass the following: O R D E R The complaint is allowed with costs of Rs.1,000/-. The OPs shall pay interest at the rate of 8% p.a. on Rs.12,540/- from 18.03.2003 till 25.02.2009, within 30 days from the date of this order. In default to pay the cost and interest as ordered above they shall pay interest at 6% p.a. on the said amount from the date of order till the date of realization. Dictated to the Stenographer, corrected and pronounced in open Forum this the 18th day of August 2009. MEMBER MEMBER PRESIDENT