BHUBANESWAR DEVELOPMENT AUTHORITY & 2 ORS. A STATUTORY BODY REPRESENTED THROUGH ITS SECRETARY, AKASHSOBHA, SACHIVALAYA MARG, BHUBANESWAR DISTT Vs. SABITRI SETHI W/O SH. ANANTA SETHI, QR. NO. VIC 1/1, UNIT

JUDGEMENT

(1.) This first appeal has been filed under section 19 read with section 21(a)(ii) of the Consumer Protection Act, 1986 against the impugned order dated 21.10.2011, passed by the Odisha State Consumer Disputes Redressal Commission (hereinafter referred to as 'the State Commission') in consumer complaint No. 151/2002, vide which, the complaint filed by the respondent/complainant Smt. Sabitri Sethi was allowed and it was held that she was liable to make payment of a sum of Rs. 3,06,000.00 to the appellant/OP Bhubaneswar Development Authority (hereinafter referred to as the Authority) as payment of interest for the delayed period of two years only, at the rates stipulated in the brochure.

(2.) The facts of the case are that the Authority floated an offer for sale of core houses under 01-02 Scheme at Jaydev Vihar, Bhubaneswar. In response to their advertisement, the complainant/respondent submitted an application and also deposited a sum of Rs. 4,00,500.00 on 13.01.99. The said house was allotted to the complainant vide allotment letter dated 0099. As per clause 4 (iii) of the brochure containing detailed terms and conditions of payment, the complainant was required to deposit the balance amount of Rs. 8,50,000.00 within three months from the date of issue of allotment letter. The complainant represented to the Authority for allowing him to make payment in instalments, rather than the down payment. However, the said request was not accepted by the Authority. The complainant then approached the Federal Bank for grant of loan after obtaining 'No Objection Certificate' from the Authority. Ultimately, the amount of Rs. 8,50,000.00 was deposited on 08.05.2001 with the Authority after raising the said loan from the Bank. The Authority vide their letter dated 08.06.2001 demanded a further sum of Rs. 3,22,015.00 towards interest for the delayed payment of the cost.

(3.) The main issue concerned in the case is that the Authority is demanding interest for the delay in payment of the amount in question @18% p.a. as per the terms and conditions laid down in the brochure. According to the Authority, the payable amount of interest for the period of delay from 2.05.99 to 09.05.2001 comes out to be Rs. 3,09,353.00. However, since the said amount of interest was not paid by the complainant, the Authority is demanding further interest @18% p.a. till date. According to the calculations made by the Authority, the outstanding dues as on 31.01.2012 are Rs. 9,07,226/-. However, on the other hand, the complainant has alleged deficiency in service and unfair trade practise on the part of the Authority on various counts, including the late delivery of possession etc.