Filed on : 26.11.2013

Disposed on.21.11.2016

BEFORE THE BANGALORE URBAN II ADDITIONAL DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, SHANTHINAGAR, BANGALORE – 560027.

DATED THIS THE DAY 21^st OF NOVEMBER 2016

CONSUMER COMPLAINT NO.2635/2013

PRESENT: 

KUM. T. SHOBHADEVI, M.A., LL.B.,        …. PRESIDENT

SRI. BALAKRISHNA V MASALI                ….. MEMBER

SMT V.ANURADHA B.A., LL.B.,                 ….  MEMBER

V/S

ORDER

BY SMT. V.ANURADHA, MEMBER

          This complaint is filed under section 12 of the Consumer Protection Act 1986, praying for a compensation of Rs.19,55,000/- towards the deficiency of service rendered by the OP and for other relief.

       2.      Brief facts of the complaint as follows;

       The complainant being one of the member of the OP society having Membership No.2636, applied for a residential site measuring 60 X 40 feet in their Manchanayakanahalli Housing Project in the month of October 2005 and paid the sale consideration of the site in four installments starting from 25.10.2005 to 18.06.2007 amounting to Rs.8,40,000/- through DD in favour of the OP. the OP has issued the receipt for having received the same. Even after a lapse of 8 years the OP failed to develop the said residential layout and hence the complainant by his letter dated 17.06.2013 sought for refund of the amount paid by him with interest.  In response to the said letter the OP has refunded the amount of Rs.8,40,000/- with very meager rate of interest @ 2.5% per annum.  The complainant has received the same and wrote a letter dated 08.07.2013 to the OP seeking interest at the rate of 24% p.a., on the amount paid by the complainant, but OP has not responded.  Once again the complainant wrote a letter dated 06.11.2013 seeking interest on the amount, but the OP written an untenable and evasive reply on 08.11.2013. Hence this complaint.

3.      Upon service of notice, OP appeared before this Forum and filed its version admitting the transaction made with the complainant regarding the residential site. Further the OP submits that the complainant issued the letter dated 17.06.2013 demanding to refund the amount paid with interest.  On his demand OP has approved and on 20.06.2013 the OP has paid the principal amount of Rs.8,40,000/- and Rs.1,43,598/- interest on principal amount  on 26.06.2013 and the complainant has accepted the same. Once again on 06.11.2013 the complainant written a letter to the OP seeking interest on the amount paid by him.  After accepting the principal amount and interest the complainant made second thought and to gain unlawful profit seeking exorbitant interest on the amount written letter dated 06.11.2013.  For the same the OP replied letter dated 08.11.2013 giving the details of deposit.  The complainant not incurred any financial loss and caused any inconvenience as alleged by the complainant. Considering the grievances of its members it already paid Rs.1,43,598/- as interest to the deposit.  Thus OP is not liable to pay any compensation to the complainant.  

4.      The OP further submits that, the OP is constituted for the benefit of the employees and ex-employees of the Vijaya Bank.  The OP is a nonprofit organization with a service oriented motive to its members.  Object is to provide developed sites to the members of the society.  In the earlier part of time the Government of Karnataka acquired the land near Bannergatta Road after conversion of the same handed over the same to the society and society got approved the layout plan from BDA and successfully distributed the sites to its members.  In the later part society constructed residential complex at the layout approved by the BDA and distributed the same to its members.  The OP society could not avail the land through Government, hence the OP has contracted with M/s SPR Developers to procure and develop the land measuring 126 acre 26 guntas at Manchanayakanagalli, Bheemanhalli, Hampapura and Talaguppa Village of the Ramanagar Taluk. The developer assured to exchange the litigated land to the extent of 55 acres 21 guntas before 31.12.2011, but failed to fulfill his assurance.  To safe guard the interest of the members of the society, OP filed a case in CMP No.94/2012 before the Hon’ble High Court of Karnataka against the Developer for breach of contract as per the provisions of MOU.  Hon’ble High Court of Karnataka referred the matter to the Arbitrator.  In the Arbitration case No.SK/1/2013-14 parties resolved their dispute before the Mediation and entered into an agreement dated 08.04.2013, as per the same Award is passed the Developer to agreed to pay a sum of Rs.185 crores to society in assured installment and society has to return the lands to Developer and the MOU and supplementary agreements entered between the parties stands cancelled.

5.      The OP further submits that at any point of time assured or promised to its members that it will pay interest on the amount paid by the members for the sites.  However for goodwill society the OP paid the interest to its members who ever demanding for repayment of deposit amount at its possible limits. The claim of the complainant is unreasonable and society will not withstand if the claim made by the complainant is allowed.  The society is paid interest to the complainant at possible limit.  Hence the OP prayed for dismissal of the complaint.

6.      Perused the pleadings and evidence and also the documents produced by both the parties.  Arguments are heard.

7.      The points that arise for our consideration are:

1)         Whether the complainant has proved the deficiency in service on the part of the opposite parties?

2)         Whether the complainant is entitle for the claim?

3) What order?

8.      Our answers to the above points:

1. Point No.1        :         In the Negative
2. Point No. 2       :         In the Negative
3. Point No.3:                As per final order for the following;

9. POINT NO. 1 AND 2:

       On perusal of the pleading evidence and produced documents by both the parties, it reveals that the complainant being a member of the OP society applied for residential society measuring 60 X 40 feet in their Manchanayakanahalli Housing Project in the year 2005 and the complainant has paid the entire sale consideration in four installments from 25.10.2005 to 18.06.2007, amounting to Rs.8,40,000/- through DD in favour of OP and OP has issued the receipt for the same.  To prove that the complainant has produced the following copies of documents;

1. Four receipts issued by the OP, marked as Document No.1, 1a, 1b and 1C
2. Letter of undertaking dated 17.04.2007, marked as Document No.2,
3. Allotment Letter dated 17.04.2007, marked as Document No.3,
4. Letter dated 17.06.2013 by the complainant, marked as Document No.4,
5. Acknowledgement, marked as Document No.5,
6. Letter dated 08.07.2013 by the complainant, marked as Document No.6,
7. Letter dated 06.11.2013 by the complainant, marked as Document No.7,
8. Acknowledgement, marked as Document No.8.
9. Reply letter by the OP dated 08.11.2013, marked as Document No.9
10. Copy of the Directors Report dated 29.08.2013.

       10.    The project of the OP delayed for some legal consequences.  The OP has approached for several legal authorities to get relief.  The complainant sought for refund of the amount with interest. As per Document No.4 the complainant claimed for surrender of site and for refund of the amount which he has paid for purchase of site. The OP has refunded the amount of Rs.8,40,000/- along with interest of Rs.1,43,598/- on 26.06.2013 by considering the grievance of his members.  The complainant has also accepted the same. According to Document No.4 the complainant voluntarily surrendered the site to the OP society and claimed the refund of sale consideration with interest and the complainant has received the sale consideration with interest from the OP As per Document No.4.  It clearly shows that the complainant has accepted the refund amount without any protest.

       11.    On the other hand, the OP has accepted the transaction between the complainant and OP has explained the delay of the project. It was clearly due to legal consequences the project was not completed within the promised date.   On 17.06.2013 the complainant has voluntarily surrendered the site and sought for refund of the amount paid by the complainant with interest.

       OP counsel has produced some authorities 1991(2) CPJ 183

Larger principles of estoppels would be equally attracted to consumer disputes as it is to the other fields of law.  Thus after received full and final amount for his claim by a receipt voluntarily executed by complainant, doing so he has clearly waived his right to sue and any cause of action accruing to him and

1992(1) CPJ 320

A preliminary question that arises for consideration is, whether the complaint is maintainable if the claim has already been settled by the respondent.  It is not disputed an amount of Rs.3,70,988/- has been paid by the Insurance company to the complainant vide payment voucher dated 11.1.91, A receipt was also obtained by the company from complainant. In the receipt it is stated that the amount has been received by her in full and final settlement of the claim.  After having received the amount in full and final settlement the complaint is debarred from filing the complaint before this Commission.  If complainant is aggrieved against the said payment in any ground, she can have approach a Civil Court.

The complainant has not produced any agreement/contract between the complainant and OP regarding the interest and also in this complaint the complainant has already received the principal amount with interest and there is no further contract between them and the complainant has utterly failed to prove the deficiency in service on the part of OP.  Hence we answer point 1 and 2 in the Negative.

       13.   POINT NO. 3:

In the result we proceed to pass the following;

        ORDER

            The Complaint is Dismissed. No cost.

Send copy of the order to both the parties at free of cost.

(Dictated to the Stenographer, transcribed and computerized by her/him and corrected and then pronounced by us in the open Forum on this the 21^st DAY OF NOVEMBER 2016)

MEMBER                 MEMBER               PRESIDENT