LAWS(NCD)-2007-7-46

CHANDIGARH HOUSING BOARD Vs. AVTAR SINGH

Decided On July 12, 2007
CHANDIGARH HOUSING BOARD Appellant
V/S
AVTAR SINGH Respondents

JUDGEMENT

(1.) Since common issues arise for decision, this batch of 25 revision petitions is disposed of by this common order.

(2.) For deciding revision petitions the facts are being taken from R.P. No. 734/2004. Respondent No. 1/complainant was a member of respondent No. 2/opposite party No. 2 -Progressive Co-operative House Building Society, Chandigarh. Society had applied for land to the petitioner/opposite party No. 1 Housing Board of being distributed among its members for construction of the houses. In the year 1999, the petitioner came up with a new policy according to which the land was to be allotted to the societies only for construction of multi-stordeyed building. This policy was challenged by respondent No. 2 along with other Co-operative Housing Societies by filing C.W.P. No. 1454/1992 in the Punjab and Haryana High Court. The High Court passed an interim order dated 11.5.1992 in the following terms :

(3.) Said writ petition was dismissed by the High Court by the order dated 18.12.1996. It was alleged that respondent No. 1 deposited amount of Rs. 12,200 being 10% of the tentative price on 1.6.1992 with respondent No. 2 Society who in turn deposited it along with the amounts of other members with the petitioner Housing Board. After the dismissal order dated 18.12.1996, an amount of Rs. 44,017 was deposited by respondent No. 1 with respondent No. 2 who in turn deposited the same with the petitioner. Amount of Rs. 44,017 comprised the sum of Rs. 24,200 as 15% of the balance amount and Rs. 19,817 as interest @ 18% p.a. on the amount of Rs. 24,200. It was stated that as respondent No. 1 was not interested in purchase of flat, in January 1999 he applied for refund of the deposited money with interest and his application was forwarded to the petitioner by respondent No. 2. Out of total deposited amount of Rs. 56,117, the petitioner conveyed permission for refund of Rs. 32,670 by the letter dated 24.7.1999 to respondent No. 2 Society. Amounts of Rs. 19,817 paid by way of interest and Rs. 3,630 being the amount equivalent to 10% of 25% of the earnest money of the tentative value, were not paid to respondent No. 1. Thus, seeking refund of these amounts and claiming certain other reliefs, the respondent No. 1 filed complaint before the District Forum which was contested by the petitioner by filing written version. Plea taken in written version was that amount of Rs. 3,630 being 10% of 25% of earnest money was forfeited as per the instructions of Finance Secretary, U.T., Chandigarh. In regard to the amount of interest it was alleged that on a representation made by the General Hospital and Allied Dispensaries Doctors Cooperative House Building Society the matter had been referred to the Finance Secretary, U.T., Chandigarh by the petitioner vide letter dated 11.12.1998. The decision received from the Finance Secretary, U.T. Chandigarh vide letter dated 21.7.1999 was not in accordance with the clarification sought by the petitioner Housing Board. Vide Memo No. 33/3/76-UTFI (4)/2000/2602 dated 9.3.2000, the Finance Secretary, U.T. Chandigarh finally decided that the interest paid by the Societies on earnest money deposited with the Board in pursuance of High Court order is not to be refunded if the Society seeks refund of the earnest money as a whole or in respect of any member as it is not a part of the earnest money. Refund of amount of interest was withheld pending the decision at the end of the Finance Secretary, U.T., Chandigarh. Liability to pay the amount claimed by respondent No. 1 was emphatically denied. By the order dated 7.5.2003 the District Forum while partly allowing the complaint directed the petitioner to refund the entire deposited amount of Rs. 56,117 with interest @ 8% p.a. from the date of respective deposits till payment after adjusting the amount of Rs. 32,670 already paid to respondent No. 1. Dissatisfied with this order the petitioner filed appeal which was partly allowed by the State Commission vide order dated 2.12.2003 modifying the order of District Forum to the extent that interest will be payable from the date of payment of Rs. 32,670 and not from dates of deposit of the amount of Rs. 56,117.