DELHI DEVELOPMENT AUTHORITY Vs. GOVINDA RAO

JUDGEMENT

(1.) This order will dispose of the above titled appeals which arise out of a common order passed by the State Consumer Disputes Redressal Commission, Delhi on 11th December, 1991 in Complaint Case Nos.C-57/90, C-65/90 and C-84/90. These complaints were filed separately by the three appellants in Appeal No. 43 of 1992. The State Commission, by a majority view disallowed all the claims of the complainants except the claim for compensation for defective workmanship with regard to the level of floors and grinding of floors and allowed Rs. 7,000/- to each of the complainants to undertake the work of flooring. Feeling aggrieved against that order, the appellant Delhi Development Authority (for short 'DDA')has filed the above Appeal Nos. 40, 41 and 42 ail of 1992, while the three claimants have filed a joint appeal i.e., Appeal No. 43 of 1992.

(2.) The facts are that all the three claimants got themselves registered on different dates under the Fifth Self-Financing Scheme (SFS) for category II flats with DDA and were allotted flats in Block G-17, Pocket GH-13, Paschim Puri. We do not think it necessary to give the facts of each complaint in detail. Suffice it to say that their grievances about the nature of construction can be summarised as follows :

(3.) It was the further grievance of the complainants that they were required to pay the first four instalments being the 90% of the estimated cost of the flats within a span of 6 to 7 months. The due date for payment of the first instalment was on 5th August, 1986 while for the fourth instalment it was on 28th February, 1987. The fifth and final instalment was to be paid when the letter of allotment of possession of said flats was to be issued to the complainants. The draw for allotment of special flats was held on different dates in 1989 and they were required to pay the fifth and final instalment along with the interest on account of late payment of the instalments, ground rent, demurrage charges and service charges. On account of late construction of the flats DDA allowed interest @ 7% p.a. on the projected amount till date of letter of allotment. The appellants claimed interest from the DDA on 90% of the cost of the flat from the date of payment of the instalments, while the DDA, according to them, illegally and arbitrarily demanded from those appellants within a span of 6 to 7 months instead of 24 months as per the Clause No. 9 of the brochure for SFS Registered Schemes of 1982 and 1985 till the date of possession. It was in November and December, 1989 the claimants claimed interest @ 16% which was the rate of interest charged by the DDA on default in the payment of instalments.