EMPIRE BUILDERS Vs. FRANCIS REGINALD DSOUZA

JUDGEMENT

(1.) Petitioner was the opposite party before the District Forum, where the respondent had filed a complaint alleging deficiency in service on the part of the petitioner.

(2.) Very briefly the facts of the case are that the respondent had booked a flat with the petitioners and had paid Rs. 5,68,520 against the total cost of flat of Rs. 6,16,000. As per the terms of the agreement, the petitioner was to complete the construction within a period of 18 months, failing which the petitioners were to be liable to pay an interest @ 10% p.a. for the delayed period on all amounts paid to the respondents/complainants. When the possession was not being delivered, a complaint was filed before the District Forum, who after hearing the parties, directed the petitioner to execute the Sale-Deed of the said bungalow, pay interest @ 10% p.a. to the complainant from the respective dates of deposit(s) within 3 months from the date of order alongwith cost of Rs. 1,000. Aggrieved by this order, an appeal was filed before the State Commission, who partly allowed the appeal filed by the petitioner. Not satisfied with the relief, this revision petition has been filed before us.

(3.) We heard the learned Counsel for the petitioner and also perused the material on record. There is no dispute that there has been considerable delay in delivery of possession of the flat to the complainants. As per law laid down by the Supreme Court in the case of Ghaziabad Development Authority v. Balbir Sigh, II (2004) CPJ 12 (SC)=III (2004) SLT 161, the petitioner would be entitled to interest @ 12% p.a. but in this case, both the lower Forums have awarded interest @ 10% as per terms of agreement for delayed delivery. A last ditch effort is made by the learned Counsel for the petitioner to state that the interest should be calculated from the date of handing over the possession as per agreement (seeking repreive of 18 months), and not from the date of deposit. In that case, in our view, interest should have been @ 12% p.a. as per law laid down by the Hon'ble Supreme Court (supra) and not 10% p.a. granted by the District Forum/State Commission. On equity, we find that no interference is called for in the order passed by the District Forum and as affirmed by the State Commission.