ALFRAN REALTORS Vs. MERLIN PINTO

JUDGEMENT

(1.) THE main grievance of the appellant is against award of interest on the entire amount of Rs. 7,00,000/- which has been awarded @ 9% from the date of receipt of the said amount till termination of the agreement and @ 18% interest from the date of termination of the agreement till the date of payment. It was a case where the appellant is a builder and had entered into an agreement with the respondent for booking an apartment No. L-6 of about 71.45 sq. mtrs. at Brisa Residential Complex, Calangute. The total cost of the apartment was Rs. 7,65,000/-. On 25.11.1994, the respondent had paid Rs. 20,000/ - towards booking of the apartment and another sum of Rs. 5,000/- on 28.11.1994. The agreement for construction was executed on 15.2.1995. Upon execution of the said agreement, a further sum of Rs. 6,75,000/- was paid. Thus, in total a sum of Rs. 7,00,000/- was paid towards the cost of the apartment apart from that Rs. 1,000/- were paid towards the legal charges. As per the agreement, after construction, the apartment should have been handed over on 15th February, 1996. There was an inordinate delay in construction. Since the appellant failed to complete the construction and hand over the possession, the respondent demanded refund of the entire amount deposited together with interest. The said agreement was duly terminated by a legal notice.

(2.) AFTER going through the facts, the State Commission had directed to refund Rs. 7,00,000/- as mentioned above apart from awarded compensation to the tune of Rs. 50,000/-. Only point seriously agitated is about awarding of interest. We are of the view that appellant had used that money and had failed to deliver the premises on the due date and in fact has retained the property after termination of the agreement. Therefore, the State Commission has not made any error in awarding the interest as stated above. Interest @ 9% on an amount of Rs. 7,00,000/- and thereafter @ 12% is quite reasonable and does not call for interference by this Commission. Therefore, the appeal is dismissed.