C M PUTTANNA Vs. L M L LTD

JUDGEMENT

(1.) Heard the Appellant in person. The respondents have remained absent after due service before the District Forum. Notice sent by registered post must also have been served on the Respondent. This appeal is directed against the order dated 12.7.1991 passed by the District Forum, Bangalore, in Complaint No.470/90 on its file.

(2.) It arises in this way: the Appellant by paying Rs.500/- in the year 1985 had booked for a scooter with the respondent. In October 1986, by a letter dated 22.10.1986 as per Ex. C-1, the appellant has cancelled the booking and requested the respondent to repay the advance amount paid by him. Since the said request was not complied with by the Respondent, the appellant filed a complaint before the District Forum for a direction to respondent for refund of a sum of Rs.500/- together with interest at 18% p. a. and costs of Rs.650/-. The Respondent remained absent. On the material placed by the complainant, the District Forum directed the Respondents to repay a sum of Rs.500/- to the Appellant with interest thereon at 9% p. a. from the date of payment till 22.10.1986 and thereafter at 12% p. a. and costs of Rs.200/-. Being dissatisfied with the said order, the Appellant preferred this appeal.

(3.) The appellant has disputed only the rate of interest awarded to him by the District Forum. According to him it ought to have awarded 18% interest. As awarded by the National Commission in Mumbai Grahak Panchayat V/s. M/s. Lohia Machines Ltd., 1991 1 CPJ 26 (NC) (O. P. No.15 of 1990, decided on 26.9.1990), interest at the rate of 18% p. a. was awarded on the amount of advance deposited for the period between the date of expiry of the 60 days from the date of booking till repayment. In the body of the said judgment, it is observed that as per the conditions notified by the Company, the advance deposit of Rs.500/- was to carry simple interest at the rate of 9% p. a. But in the event of cancellation of the booking by the applicant, the money deposited by way of advance was to be refunded by the Company with only interest at the rate of 7% p. a. As the present case also related to M/s. L. M. L. Ltd. , the said condition applies to this case also. Hence, the District Forum ought to have awarded interest at the rate of 7% p. a. from the date of booking till 22.10.1986 and at the rate of 18% p. a. from 22.12.1986 till the date of repayment.