UNITED INDIA INSURANCE CO LTD Vs. RAMAVTAR AGRAWAL

JUDGEMENT

(1.) Army Welfare Housing Organization (AWHO), located at Kashmir House, Rajaji Marg, New Delhi - 11 was formed as a welfare society and registered under the Societies Registration Act, 1860 to construct self-financed houses for eligible serving/ retired personnel/ their widows from their personal funds on 'no profit no loss basis'. This society has no funds of its own nor receives any grant from Government. Its legal status is of a trustee or agent. After constructing and giving possession of the dwelling units (DU) the excess funds deposited with the society are required to be refunded.

(2.) The members are required to pay funds in instalments as per the progress of the project. Penal interest was charged on late payments and relief interest is given on early/excess payment of an instalment. In this case the complainant was handed over flat No. 234, Sector 37, Noida on 14.6.1986 after making full payment including penal interest of Rs. 13,493.20 due to delayed payment. During audit a sum of Rs. 18,200 was found to have been charged in excess. This was refunded by cheque on 17.10.1994.

(3.) The case of the petitioner/ complainant is that no interest has been paid to him on the amount refunded in spite of several verbal and written requests to do so, though AWHO is clearly liable to pay the interest at least 15% per annum (compounded) for the period lapsed since handing over the possession of the flat till date i.e. 14.6.1986 to 17.10.1994. As he did not get any positive response he filed a complaint before the District Forum. The District Forum after hearing the parties and perusing the evidence held that as the issues raised are complicated in nature and require detailed examination of the documents and cross-examination of witnesses which is not possible in the summary proceedings adopted by the forum, the Forum dismissed the complaint and petitioner was advised to move the appropriate Civil Court.