DHAMDHRERE ASSOCIATES Vs. KALAYANRAO DIGAMBER JADHAV

JUDGEMENT

(1.) Challenge in this Revision Petition, under Section 21(b) of the Consumer Protection Act, 1986 (for short "the Act"), is to order dated 30.11.2009 in Appeal No. 306 of 2009 passed by the State Consumer Disputes Redressal Commission, Maharashtra, Mumbai (for short "the State Commission"). By the impugned order, the State Commission while concurring with the order of the District Forum only reduced the interest from 24% to 8% per annum for a period of two years from 28.2.2007 and thereafter another period of two years interest payable at 10% p.a. The Opposite Party was also directed to give Completion Certificate while delivering the possession and returned the encash cheque.

(2.) The brief facts as set out in the Complaint are that the Complainant purchased flat No. 7, B Wing admeasuring 60 sq. ft. from Opposite Parties 1 & 2 and paid Rs. 58,500/- at the time of agreement dated 31.8.2006. The Complainant had to pay the balance amount of Rs.3,01,500/- within 6 months from the date of agreement and the possession of the flat would be given within 18 months from the date of agreement. If there was any delay in making the payment, the Complainant shall have to pay interest at the rate of 24% from the date of payment till the date of realisation. The Opposite Parties also have the right to cancel the agreement in case any default by the Complainant by collecting Rs. 25,000/-from the Complainant by way of compensation. It is averred by the Complainant that he had requested the Opposite Parties for documents with respect to the subject flat as required by Pune Merchants Co-op. Bank for availing loan. Inspite of several requests, the Opposite Parties did not give the said documents. The Complainant requested the first Opposite Party to give NOC, but, instead received legal notice dated 4.7.2007, demanding the balance payment due. It is pleaded by the Complainant that for obtaining loan from the Bank, necessary documents are required to be provided and due to the delay caused by the Opposite Parties themselves, the loan could not be obtained on time. On 1.11.2007, loan of Rs. 3,50,000/- was approved and when the Complainant went to the first Opposite Party to hand over the cheque, he refused to accept it stating that the flat allotment had been cancelled. Hence, the Complaint seeking direction to the first Opposite Party to deliver possession of the flat, pay compensation and interest.

(3.) Opposite Parties filed their written version stating that as per Clause 11 (C) of the agreement, the Complainant had to make the balance payment within 15 days of receipt of legal notice, or else, the agreement would be cancelled. The Complainant failed to pay the balance amount when the first legal notice was sent on 10.5.2007 and thereafter another legal notice on 4.7.2007 was sent for which the Complainant replied admitting that he had dues pending and agreed to pay the balance amount. It is averred that the Complainant never submitted any loan proposal before January 2007 and that the cancellation was totally justified. It is pleaded that the Complainant had booked two flats but due to his financial problems, he requested the Opposite Party to allot only one flat.