Date of Filing : 26.04.2011
Date of Order : 18.07.2011
BEFORE THE II ADDITIONAL DISTRICT CONSUMER
DISPUTES REDRESSAL FORUM,
SESHADRIPURAM, BANGALORE – 560 020
Dated 18th JULY 2011
PRESENT
Sri. S.S. NAGARALE, B.A., LL.B. (SPL) …. President
Smt. D. LEELAVATHI, M.A., LL.B. …. Member
Sri. BALAKRISHNA V. MASALI, B.A., LL.B.(SPL) …. Member
COMPLAINT NO. 819 / 2011
Smt. R. Lakshmi,
D/o. Late Sri. M.C. Rajagopal,
#124, “Rukmini”, 6th Cross,
Vyalikaval, Palace Orchards,
Bangalore – 560 003. ……. Complainant
COMPLAINT NO. 820 / 2011
S. Pushpavalli,
W/o. Late M.C.S. Chari,
#124, “Rukmini”, 6th Cross,
Vyalikaval, Palace Orchards,
Bangalore – 560 003. ……. Complainant
V/s.
The Manager,
The Vyalikaval House Building
Co-operative Society Ltd.,
#62, 7th Main, Malleshwaram,
Bangalore – 560 003. …… Opposite Party
OP is common in both the Complaints
ORDER
(By the President Sri. S.S. Nagarale)
These 2 Complaints are clubbed for passing the order since the OP in both the cases is one and the same. The question of law & facts involved in these Complaints are also one and the same. Therefore, these two Complaints can be conveniently clubbed and common order can be passed. Copy of the Order will be kept in connected complaint.
2. The Complainants have filed the Complaints u/s. 12 of the C.P. Act, 1986 against the OP seeking refund of amount along with interest and compensation.
3. Brief facts of the case are that the Complainants became members of the OP Society and paid Rs.85,000/- each for allotment of Sites right from 1992 to 2000. Even after long years and repeated approach, Society has not given possession of Sites. There is no action on the part of OP Society. Society had issued letter to all the members stating that no interest will be paid on the sital advance and there is no provision in the bye-law to pay the interest and Society has lost lands and is in difficulty. Complainants were suffered loss and mental stress over inordinate delay and deficiency in service on the part of OP Society. Therefore, Complainants have prayed that OP be directed to refund Rs.85,000/- paid to the OP with interest and compensation.
4. OP society has filed version admitting that the Complainants are the members of the OP Society. OP Society has not denied the payment made by the Complainant for allotment of Sites. The defence of the OP is that due to several litigation right upto Hon’ble Supreme Court of India, the Society had to loose the lands and the money invested on the lands was of the members who had invested with the OP Society. Society went upto Supreme Court in Special Leave Petition. Order of the Hon’ble High Court had been confirmed and there was a direction to the Government to return the lands to the land owners. By this direction and loosing of lands, Society was put in embarrassing situation. The members have been informed that the deposited amount shall not carry interest. The question of payment of interest on the said deposit does not arise. Hon’ble Supreme Court of India in ruling reported in AIR 2010 SC page 486 has held that development authorities need not pay interest on the deposit amount for the delay or failure of the projects if there is interference by the Orders of the Court. Complaints are barred by time and not maintainable. However, Society is ready to refund the sital deposit amount to the Complainants herein.
5. I have gone through the pleadings of the respective parties and the documents produced. Arguments are heard.
6. Points for consideration are as under:
(i) Whether the Complainants have proved deficiency of service on the part of OP?
(ii) If so, whether the Complainants are entitled for refund of amount?
(iii) Whether the Complainants are entitled for the interest and compensation?
(iv) What order & relief?
REASONS
7. It is admitted case that Complainants have deposited Rs.85,000/- each with OP Society for allotment of Sites. Deposits were made right from 1982 to 2000. To prove the deposits made, Complainants have produced passbook and other documents. As regards deposit or payment is concerned, absolutely there is no dispute. OP never denied receipt of amount of Rs.85,000/- each from the respective Complainants. Therefore, the case of the Complainants that they have paid Rs.85,000/- to the OP Society shall have to be accepted as true & correct. It is also admitted fact that the OP Society has not allotted any sites to the Complainants even after several requests and lapse of time. The Society has taken defence that due to several litigations upto Hon’ble Supreme Court of India project could not be taken-up. Therefore, Society was not in a position to form layout to allot Sites. OP Society has come forward to refund the amount to the respective members. In similar Complaints against OP Society Complaints are being allowed by this Forum and other District Consumer Forums with a direction to the OP Society to refund the amount. Admittedly, there is no agreement for payment of interest. As per the Supreme Court judgement, development authorities need not pay interest on the deposit amount for the delay or failure to take-up the project. Therefore, there is no question of payment of past interest in this case. Complainants have made inordinate delay in approaching the Fora. The delay also dis-entitles payment of interest to the Complainants. In similar matters, this Fora is passing orders for refund of the amount without passing past interest on the deposit amounts. In this case also Complainants are not entitled past interest and compensation. The ends of justice will be met in ordering OP to refund Rs.85,000/- to the Complainants with interest @ 9% P.A. from the date of filing the Complaint till the date of refund. In the result, I proceed to pass the following:
ORDER
Both the Complaints are allowed. OP Society is directed to refund Rs.85,000/- each to Smt. R. Lakhshmi in CC No. 819/2011 and Smt. S. Pushpavalli in CC No. 820/2011.
Respective Complainants are entitled for interest @ 9% P.A. on the above amount from the date of filing the Complaint till refund / realization.
Respective Complainants are also entitled for Rs.1,000/- each as cost of the present litigation from the OP Society.
Keep Original Order in CC No. 819/2011 and copy be placed in connected CC No. 820/2011.
Send copy of this Order to both the parties free of cost immediately.
Pronounced in the Open Forum on this 18th day of JULY 2011.
Order accordingly
PRESIDENT
We concur the above findings
MEMBER MEMBER
SSS
