BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM AT BANGALORE URBAN

 06^th DAY OF OCTOBER 2015

O R D E R

SRI. P.V SINGRI, PRESIDENT

These three complaints have been filed by three separate complainants U/s.12 of the Consumer Protection Act, 1986 against the same Opposite Party (herein after referred as OP) claiming refund of advance amount paid by them towards purchase of site together with interest, damages and costs.

2. Since the issues involved in all the three complaints are one and the same, all these three complaints have been taken up together for disposal under this common order.

3. The OP is a House Building Co-operative society engaged in formation of residential layout at various places in Bangalore.  The complainants have became member of the OP by paying necessary membership fee and also purchased shares.  Each of the complainants have been issued with separate membership number and pass books by making necessary entries.  In pursuance of the advertisement, calling upon the members to submit application for allotment of sites in various layouts to be formed by OP, the complainants submitted their respective application for site in a layout to be formed at Bannerughatta Village.

4. The complainant in C.C No.837/2014 initially deposited a sum of Rs.5,000/- on 30.06.1987.  Thereafter Rs.25,500/- on 01.01.1988 towards purchase of site.  Thus the complainant cumulatively paid a sum of Rs.30,500/- towards the share allotment and site purchase deposit.  The complainant thereafter paid an additional sum of Rs.15,000/- on 16.10.1993 and thus the complainant paid a total sum of Rs.45,500/- to the OP.  Since OP failed to complete the layout formation even after several years the complainant demanded the OP for refund of the advance amount paid by him towards share amount as well as towards purchase of site.  In this regard, the complainant issued letters dated 26.04.2002 and 29.04.2002.  The OP on 02.05.2002 replied, admitting their liability to refund the advance amount to the complainant and stated that immediately after receipt of funds they would refund the deposit amount.  However the OP failed to refund the said amount.

5. Thereafter the complainant again wrote another letter to the OP, in response to which, the OP wrote a letter dated 13.05.2002 admitting their liability to refund the deposit amount and further stating that they would refund the amount immediately after receiving funds from Government or from any other sources.  When the OP failed to pay the amount even there after the complainant issued one more letter dated 13.08.2002 to which the OP did not respond.  Finally on 12.06.2012, the complainant wrote another letter requesting to refund the deposit amount to which the OP replied by their letter dated 14.06.2012 and promised to refund the advance amount by the end of June 2012.  But again the OP failed to refund the amount.  Thereafter, the complainant got issued a legal notice on 06.01.2013 to the OP for refund of the amount and in reply to the said legal notice, the OP sent a letter dated 11.01.2013 again making false promise to refund the deposit amount after the funds are mobilized.  Since the OP failed to refund the deposit amount, the complainant was constrained to approach this Forum.

6. The complainant in C.C No.838/2014 submitted an application for allotment of residential site and initially deposited a sum of Rs.25,000/- with OP on 01.01.1988 and he has been enrolled as a member of OP society and has also paid a sum of Rs.100/- towards share account.  Subsequently the complainant paid an additional amount of Rs.15,000/- on 21.10.1993 towards purchase of the site.  Thus the complainant totally paid a sum of Rs.40,000/- to the OP.  Even after lapse of several years, the OP failed to form the layout at Bannerughatta.  Therefore, the complainant submitted an application on 07.02.2000 to allot him an alternate site in the Nagavara project undertaken by OP, which was not entertained by the OP.  Thereafter, the complainant on 26.04.2002 issued a letter demanding the OP to refund the entire deposit amount.  However the OP failed to refund the deposit amount and even did not reply the said letter.  Subsequently again on 12.06.2012 after making several visits to office of OP, the complainant sent another letter demanding refund of the deposit amount and in response to the said letter, the OP issued a letter dated 14.06.2012 admitting their liability and promised to refund the amount by the end of June 2012.  However, they failed to do so.  Thereafter, the complainant ultimately got issued a legal notice dated 06.01.2013 to the OP calling upon them to refund the deposit amount together with interest and OP in reply to the said legal notice, wrote letter dated 11.01.2013 reiterating the earlier false promises and ultimately failed to refund the deposit amount.  Therefore, the complainant was constrained to approach this Forum.

7. The complainant in C.C No.839/2014 in response to the advertisement of OP applied for a allotment of site to be formed at Bannerughatta Village and initially deposited a sum of Rs.25,000/- on 08.01.1988.  The OP enrolled the complainant as member and allotted him a membership No.SAS 2576 and the complainant also paid a sum of Rs.100/- towards share account.  Subsequently the complainant paid an additional sum of Rs.15,000/- on 21.10.1993.  Thus the complainant paid a sum of Rs.40,000/- to the OP towards the allotment of site.  Even after several years, the OP failed to form the layout at Bannerughatta.  Therefore, the complainant by his letter dated 07.02.2000 requested the OP to allot him an alternate site in their Nagavara Project.  However, his request was not entertained.  Thereafter, the complainant wrote a letter to the OP demanding refund of the deposit amount and the OP acknowledged the said letter on 29.04.2002.  However, failed to refund the advance amount.  The complainant made several visits to the office of the OP requesting for refund of the deposit amount but without any success.  Again on 21.06.2012 the complainant wrote another letter demanding the OP to refund the deposit amount and the OP replied to the said letter on 30.06.2012 stating that by the 2^nd week of July 2012, soon after the receipt of the funds the complainant will be paid the deposit amount through cheque.  Even thereafter the complainant did not receive the money from the OP.  Therefore, he got issued the legal notice on 06.01.2013 and in reply to the said notice, the OP wrote letter dated 11.01.2013 reiterating the false promises that they would refund the deposit as soon as they receive the funds from Government or the concerned.  Therefore, the complainant was constrained to approach this Forum for redressal.

8. The complainants have prayed for an order and directing the OP to refund their respective deposit amount together with interest at the rate of 18% p.a from the date of payment till the date of realization and compensation of Rs.50,000/- for deficiency in service on their part together with cost of litigation.

9. Despite service of notice, the OP failed to turn up and contest.  Therefore, OP was placed ex-parte.

10. The complainants thereafter, to substantiate the allegations made in the complaints, filed their evidence by way of affidavit reiterating the allegations made in the complaints.  Written submissions were also filed on behalf of complainants.  All the complainants have produced original membership pass books, original letters addressed to the OP and the replies given by the OP.  They have also produced the copies of the legal notices issued to OP together with the reply of OP to the said legal notice.

11. Perused the material placed on record including the allegations made in the complaint, the affidavit evidence and the various documents relied upon by the complainants.  The allegations made in the complaint coupled with affidavit evidence and the documents at Exhibits.C-1 to C-12 filed by the complainant in complaint No.837/2014 goes to establish that the complainant has paid a total sum of Rs.45,500/- to the OP towards membership fee and allotment of site in the layout to be formed at village Bannerughatta.

12. The allegations made in the complaint, coupled with the sworn testimony of the complainant and the oral documents produced by him at Exhibits.C-1 to C-9 goes to establish that the complainant in complaint No.338/2014 has paid a total sum of Rs.40,000/- to the OP towards membership fee, towards allotment of site in the layout to be formed at Bannerughatta village.

13. Similarly the allegations made in the complaint, the sworn testimony of the complainant coupled with documents at Exhibits.C-1 to C-10 produced by the complainant in complaint No.839/2014 goes to establish that the complainant has paid a total sum of Rs.40,000/- towards the membership fee and towards the purchase of the sites in the layout to be formed by the OP at Bannerughatta village.

14. The OP having collected huge sum of money from each of the complainants, failed to form the layout at Bannerughatta village within a stipulated period and further failed to allot alternate site to the complainants in their other projects completed by them.  The OP in response to the letters written by the complainant and the legal notice got issued by them though admitted the liability to refund advance amount but never paid any amount to any one of the complainants.  We don’t have any reasons to disbelieve the allegations made in the complaints and the sworn testimony of the complainants, since their claim stands unchallenged.  The OP has no valid cause in withholding the deposits received from the complainants.  The conduct of the OP certainly amounts to gross negligence on their part and also deficiency in service.  Therefore, we are of the opinion that the OP has to be directed to refund the deposit received from each of the complainants together with interest @ 18% p.a from the date of deposit till the date of realization.  Further the OP has to be directed to pay a compensation of Rs.25,000/- to each one of the complainants for causing great hardship, inconvenience and mental agony, together with litigation cost of Rs.3,000/-.  The order could not be passed with-in the stipulated time due to heavy pendency.      

15. In the result, we proceed to pass the following:    

  O R D E R

The complaints filed by the complainants U/s.12 of the Consumer Protection Act, 1986 are allowed in part.

 The OP in complaint No.837/2014 is directed to refund a sum of Rs.45,500/- to the complainant together with interest @ 18% p.a from the date of deposit till the date of realization and to pay compensation of Rs.25,000/- for the deficiency in service on their part together with litigation cost of Rs.3,000/-.

The OP in complaint No.838/2014 is directed to refund a sum of Rs.40,000/- to the complainant together with interest @ 18% p.a from the date of deposit till the date of realization and to pay compensation of Rs.25,000/- for the deficiency in service on their part together with litigation cost of Rs.3,000/-.

The OP in complaint No.839/2014 is directed to refund a sum of Rs.40,000/- to the complainant together with interest @ 18% p.a from the date of deposit till the date of realization and to pay compensation of Rs.25,000/- for the deficiency in service on their part together with litigation cost of Rs.3,000/-.

The OP shall comply the order passed by this Forum within six weeks from today.

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

This original order shall be kept in the file of the complaint No.837/2014 and a copy of it shall be placed in other connected files.

(Dictated to the Stenographer, got it transcribed and corrected, pronounced in the Forum on this 06^th day of October 2015)

MEMBER                            MEMBER                    PRESIDENT

Vln* 

Witnesses examined on behalf of the complainant dated 30.01.2015.

1. Sri.H.R Krishna Murthy,

Documents produced by the complainant:

Witnesses examined on behalf of the complainant dated 30.01.2015.

1.  Sri.H.R Venkatesha Rao

Documents produced by the complainant:

Witnesses examined on behalf of the complainant dated 30.01.2015.

1. Sri.H.V Raghavendra,

Documents produced by the complainant:

   Witnesses examined on behalf of the Opposite party - Absent

Document produced by OP - Nil

MEMBER                             MEMBER                    PRESIDENT

Vln*