DELHI DEVELOPMENT AUTHORITY Vs. SHAKUNTALA KATOCH

JUDGEMENT

(1.) The only dispute which is required to be resolved in this appeal is the issue as to whether or not the respondent is required to pay interest on the cost of the flat @ 12% p.a. from 1.4.1991 to 31.3.2002 amounting to Rs.4,92,756/-.

(2.) The respondent is actually aggrieved by the demand notice issued by the Delhi Development Authority (for short the 'DDA') directing for payment for a sum of Rs.10,68,588/- towards the cost of a SFS flat alloted to her in Vasant Kunj on 1.4.1991. The break up of the cost of the flat as given by the DDA is given herein below:- <FRM>JUDGEMENT_398_LAWS(DLH)10_2007(1).html</FRM>

(3.) The respondent applied for allotment of a flat pursuant to which he was declared successful in draw of lots held sometime in the year 1991. The total cost of the flat at that stage was only Rs.3,73,300/- which was the prevailing cost of the flat in 1991. As it appears, and agreed to by the counsel appearing for the DDA, the file of the respondent was misplaced by the DDA which was subsequently reconstructed by the DDA themselves in 1996. But despite the aforesaid reconstruction of the file even in 1996 a demand-cum-allotment letter was issued by the DDA only on 27.9.1999 making demand of an amount of Rs.13,71,781/- as the cost of the flat. Since, according to the respondent, the DDA was trying to take advantage of their inaction, the respondent challenged the demand for payment of interest. The respondent approached the Lok Adalat which considered her version as also that of the DDA and on 27.4.2001 the Lok Adalat passed an order to the following effect:-