NALINI NANJUNDAIAH Vs. BANGALORE DEVELOPMENT AUTHORITY

JUDGEMENT

(1.) COMPLAINANT is in appeal. She wants enhancement of the compensation awarded by the State Commission for the delayed delivery of possession of the house which could not be made available. There is not much dispute on the facts. Father of the complainant was allotted a house but after his death allotment was transferred in the name of the complainant. In all an amount of Rs. 5,64,760/- was paid towards price of the house. Though on paper possession was given to the complainant on 18.9.1989 but various works were yet to be done by the Bangalore Development Authority (BDA). It was the case of the BDA that construction of the house in the locality was entrusted to M/s. Khody Engineering, opposite party No. 2-respondent No. 2 herein, who had defaulted. COMPLAINANT also arrayed M/s. Khody Engineering as opposite party No. 2 but an objection was raised that there was no contract between the complainant and the contractor. Since house was not made habitable complainant approached State Commission. By the impugned order State Commission directed that if the BDA failed to deliver the possession of the house to the complainant within 90 days of the order, it would pay interest on the amount of Rs. 5,64,760/- @ 12% per annum till date of delivery of possession of the house in a condition fit to occupy the same.

(2.) GRIEVANCE of the complainant is that interest should have been awarded not from the date of the order of the State Commission but from various dates on which deposits were made with the BDA. Since it is a clear case of deficiency on the part of BDA as it has utilised the funds of the complainant all this period without making the house allotted for habitable. She is certainly entitled to the interest. For first two years no interest shall be paid which period we think is reasonable time to construct the house in a habitable condition and to hand over the possession to the complainant. Accordingly this appeal is allowed. Order of the State Commission is modified. Complainant shall be entitled to interest @ 12% per annum on the amounts from the dates these were deposited and which comes to Rs. 5,64,760/- except that no interest shall be payable on any amount deposited within two years of the date of the allotment of the house. Complainant shall also be entitled to costs which we assess at Rs. 2,000/-. Appeal allowed.