ARUN MAHADEV NAIK Vs. SHASHI NANDKISHORE JULKA

JUDGEMENT

(1.) Appellant, builder was opposite party before the State Commission. He is aggrieved by the order of the State Commission allowing the complaint of the respondents-complainants and directing appellant to refund the amount of Rs. 2,25,000/- paid by the complainants with interest @ 18% per annum and further to pay Rs. 32,250/- as damages with interest and Rs. 10,000/- as costs.

(2.) Complainant entered into an agreement dated 25.5.1998 with the appellant, builder for purchase of two flats to be built by the appellant in the complex called 'Sai Apartments'. The agreed price of the two flats was Rs. 8,25,000/-. A sum of Rs. 2,20,000/- was to be paid on the execution of the agreement and balance of Rs. 6,05,000/- in monthly instalments of Rs. 10,000/- each. However, by subsequent modification of the agreement complainants were required to pay Rs. 1,40,000/- as initial payment which was made. Appellant had agreed to hand over the possession of the flats by December, 1998. Complainants, it would appear, did not pay Rs. 10,000/- per month as they found that there was no progress whatsoever in the construction of the flats. However, subsequently again complainants agreed to pay Rs. 85,000/- which they did pay. Thus the complainants made a total payment of Rs. 2,25,000/- to the appellant towards price of the two flats.

(3.) Again there was a default in construction and when the complainants insisted for refund of the amount with interest appellant gave a bearer cheque for Rs. 25,000/- which was returned dishonoured. Complainants had to hire a flat on lease for the period till appellant handed over possession of the built up flats in Sai Apartments. For hire of separate accommodation complainants had to pay Rs. 3,750/- as licence for two months which was enhanced to Rs. 4,125/- for six months. Complainants in the complaint thus prayed for refund of the amount of Rs. 2,25,000/- with interest @ 18% per annum and also Rs. 32,250/- being the licence fee paid by them with interest @ 18% per annum. They also prayed for cost of the litigation.