<br /> <br /> <br /> By SRI.K. VIJAYKUMARAN ACHARY, PRESIDENT.<br /> <br /> This is a complaint filed by the complainant seeking enhancements in interest with excess amount due to him from the opp.party.<br /> <br /> The averments in the complaint can be briefly summarized as follows:<br /> <br /> The opp.party has alloted the complainant Plot No.S-2 in Kadappakkada Housing Scheme on 29.1.1985 on executing an agreement and also remitting the tentative land value as demanded by the opp.party. Subsequently while the complainant requested the execute Sale deed in his favour the opp.party has directed the complainant to remit an amount of Rs.2,12,336/- including additional security. Accordingly the complainant remitting the amount on 7.10.1993 for getting the sale deed executed in his name. The opp.party as per decision dated 11.12. 2002 has approved the final land value of the Kadappakkada Housing Scheme the Land value of <br /> Plot NoS2 above has been finalized by the opp.party and as per the final cost details it was seen that the sum of Rs. 1,37,628/- have been collected from the complainant. The above sum was paid to the complainant with 3.5% interest on 15.5.2004 as per cheque No.026733. The above sum was collected by the opp.party from the complainant illegally and arbitrarily. This amount was returned more than 10 years after the date of collection. The interest rate was also unilaterally and arbitrarily. The opp.party has collected from the complainant 15 % normal interest and 18% penal interest. It is to be noted the opp.party has collected the penal interest at the above rate for the above Rs. 1,37,628/- also. The opp.party has informed the complainant that they have collected the excess amount from the complainant only after in inexcusable and inordinate delay of 10 years. There is lno explanation for the said inordinate delay on the part of the opp.parties. Hence the complainant is entitled to get interest for the excess amount collected from himat the rate of 18% for the period from 7.10.1993 to 7.10.2003. Hence the complaint.<br /> <br /> The opp.party has filed version as follows: It is admitted that the complainant is the allottee of Plot No.S-2 in Working Journalist's Housing Scheme at Kada<br /> ppakkada. The plot was allotted as per the Letter No.E3/KdpaWJHS/2/84 dated 29.1.1985 of the Regional Engineer, Kerala State Housings Board, Thiruvananthapuram. As per the allotment letter the complainant has to remit the full tentative land value of Rs. 36,330/- on or before 28.2.1985. But the complainant has not remitted the tentative land value within the stipulated time. After the remittance of the tentative land value in full, the agreement for the sale of the property has been executed on 9.9.1985. The complainant as per the letter dated 26.11.1992 and 4.12.1992 the complainant has requested to issue t he sale deed kin respect of his plot. He has also informed his willingness to remit additional deposit of 30% of the tentative land value. The LAR Nos. 120,121,122 and 123 in respect of the scheme were pending disposal and hence he has been informed by the Regional Engineer, Trivandrum as per letter dated 23.3.1992 that the sale deed can be issued only after finalizing the land value in accordance with the Board decision dated 31.8.1992 and based on the willingness of the complainant to remit 30% of the tentative land value, the complainant has been directed to remit Rs.2,12,336/- which was remitted by the complainant on 7.10.1993. On 11.12.2002 the board has been finalized the land value of the above Housing Scheme as per the final cost it was seen that the allottee has remitted an excess amount of Rs. 1,37,628/- Sanction has been accorded to refund of the above sum to the complainant as per the order No.Estate/S-2/KDPA dated 28.8.2003 of the Executive Engineer, Kerala State Housing Board, Kollam Division and Rs.1,37,628/- has been disbursed to the complainant as per the cheque No.196394 dated 7.10.2003. Subsequently as per letter dated 29.10.2003 the complainant has requested interest also for the excess amount and in the meeting of the board held on 24.3.2004 it was decided to give render interest at the rate of 3.5% per annum to the complainant and accordingly a sum of Rs.48,170/- has been disbursed as per the cheque No. 026733 dated 15.5.2004. The allegation that the above sum has been collected illegally and arbitrarily is not true. Since the amount was remitted as per his willingness the complainant is in eligible to claim interest prior to 11.12.2002. It is mere concession of the board that interest at the rate of 3.5% has been sanctioned the land value account was not finalized. since the decree satisfaction certificate have not been received from the Court at the time of finalization of the land value of the scheme interest rate ranging from 15% to 20% per annum has been levied . The complainant has not remitted the tentative land value in time and for which penal interest at the rate of 18% per annum. Subsequently an agreement has been executed between the board and the complainant on 8.10.1993. There is no provision in the agreement or supplemental agreement for payment of interest for any excess remittance. The board has not purposely collected the amount the excess amount was collected according to the willingness of the complainant and there is no deficiency in service on the part of the opp.party..<br /> <br /> <br /> <br /> Points that would arise for consideration are:<br /> <br /> <br /> 1.Whether there is deficiency in service on the part of the opp.party.<br /> 2.Whether the complainant is entitled to get interest at the rate of 18% as prayed for <br /> 3. Reliefs and costs.<br /> <br /> <br /> For the complainant PW.1 is examined. Ext.P1 to P12 are marked<br /> <br /> <br /> For the opp.party DW.1 is examined. Exts. P1 to P16 are marked.<br /> <br /> <br /> Points 1 to 3<br /> <br /> As a matter of fact there is no dispute regarding the quantum of amount to be refunded. The only dispute is regarding the rate of interest. The definite contention of the opp.party is that there is no provision in Exts. D2 and D4 agreements for payment of interest on any excess remittance and that they have granted 3.5% interest as an act of gross. Since the amount was deposited voluntarily by the complainant.<br /> <br /> The contention of the complainant is that he wanted the sale deed of his plot S2 urgently and so he address the opp.party expressing his willingness to remit the tentative land value and additional 30% of the tentative land value. Merely because the complainant expressed his willingness to remit the entire tentative land value and 30% additional land value the opp.party cannot collect an amount at their desertion. According to the opp.party at that time the land value has not been fixed finally as the LAR cases in respect of the acquisition of that property was pending. The complainant has produced Ext.P3 letter dt. 26.9.1992 shows that the LAR cases 121/84, 122/84and 123/84 were disposed of and the decree has been satisfied. The veracity of Ext.P3 has not been assailed and the same has been marked without objection. Ext.D3 [a] is dated 26.11.2002 and Ext.D3 [b] is dated 4.12.2002 from which it is obvious that the complainant has issued those letters after the decree in the LAR cases are satisfied. In Ext.D6 under which the complainant was directed to remit Rs.2,12,336/- it is clearly stated that details of payments towards LAR cases were received and on the basis of which the land value was revised to Rs.486/M when such details are available there is no reason why the opp.party could not work out the correct land value on 3.8.93 ie. The date of Ext.D6. Ext.P3 shows that the decree in LAR cases have been satisfied prior to 26.9.92. Ext. D12 shows that the final land value has been approved by the Board on 11.12.2003. There is inordinate delay of about 10 years in finalizing the land value and no satisfactory explanation is forthcoming. In the absence of any satisfactory explanation this inordinate delay can only be considered a deficiency in service. DW.1 has in fact admitted in cross examination that there might have been delay. He had not denied the suggestion that is it not deficiency in service but vaguely answered that I cannot say.<br /> <br /> <br /> Merely because nothing is mentioned in the agreements regarding interest in the amounts collected no excess it will not absolve their liability. The merefact that they have granted interest @ 3.5% itself would indicate that they are liable to pay interest. It is admitted that Opp.parties are collecting 181% penal interest for belated payments. So when the payments are delayed by then the same principles will have to applied. As pointed out earlier the collection excess amount from the complainant is deficiency in service. When inordinate delay occurs in repaying the amount it is only just and proper to give reasonable interest. The interest granted to the complainant, in our view is insufficient. Hence in the interest of justice. We inclined to grant interest @ 9% per annum.<br /> <br /> <br /> In the result the complaint is allowed directing the opp.party to pay to the complainant interest @ 9% per annum on Rs.1,37,628/- for the period from 7.10.1993 to 7.10.2003 and Rs.2000/- towards costs. The order is to be complied with within one month from the date of receipt of this order.<br /> <br /> <br /> <br /> Dated this the 7th day of June, 2008<br /> <br /> <br /> <br /> <br /> I N D E X<br /> <br /> <br /> <br /> List of witnesses for the complainant:<br /> PW.1. - Anirudha Sharma<br /> <br /> <br /> List of documents for the complainant<br /> P1. - Letter sent by opp.party dated 15.7.86<br /> P2. - Letter sent by complainant to the Administrative Officer, dt. 2.12.98<br /> P3. - Letter sent by opp.party to the Land Acquisition Officer dt. 26.9.92.<br /> P4. - Letter sent by the housings Board to the Regional Engineer dt.24.6.93<br /> P5. - Letter sent by complainant to the Regional Engineer, KSHB.<br /> P6. - Letter sent by opp.party to the complainant dt. 3.8.93<br /> P7. - Letter sent by complainant to the Housings Board.Secretary<br /> P8. - Lr. Sent by Asst. Secretary KSHB. To the Administrative Office, HSHB, Tvpm.<br /> P9. - Proceedings of the Executive Engineer, KSHB, Kollam Division.<br /> P10. - Advocate notice<br /> P11. - Postal receipt<br /> P12. Reply notice.<br /> <br /> <br /> List of witnesses for the opp.party<br /> DW.1. - Santhosh cheriyan<br /> <br /> <br /> List of documents for the opp.party<br /> D1. - Ledger copy<br /> D2. - Agreements<br /> D3[a] - Letter issued by the complainant dt. 26. 11.92<br /> D3[b] – Letter dated 4.12..1992<br /> D4. - . - Letter dated 22.3.1992<br /> D5. - Board's decision dated 31.8.92<br /> D6. - Requisition dated 3.8.92<br /> D7. - Calculation statement<br /> D8. - Calculation of final land value<br /> D9. - Copy of order dated 28.8.2002.<br /> D10. - Copy of complainant's letters<br /> D11. - Extract of minutes of Board's meeting