SILVER LINE VILLAS & APARTMENTS PVT LTD & ANR Vs. SHALAKANTH, MANAGING DIRECTOR OF SILVER LINE VILLAS & APARTMENTS PVT LTD ; V V NAIR & ANR ; LISSI SHAILAKANTH

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 25.06.2015, passed by the Kerala State Consumer Disputes Redressal Commission (hereinafter referred to as 'the State Commission') in Consumer Complaint No. 70/2012, vide which, the said complaint filed by respondent No. 1 was allowed and the appellants/OPs were directed to refund a sum of Rs. 15,31,700/- to the complainant alongwith interest @12% p.a. from the date of payment till realisation.

(2.) Briefly stated, the facts of the case are that the respondent-1/complainant, V.V. Nair is stated to have paid a total sum of Rs. 15,80,000/- to the opposite party (OP) for the purchase of land alongwith villa to be constructed on Plot No. 15 16, having an area of 10 cents at Kallekad, Palakkad, Kerala. The memo of appeal filed by the appellant states that the complainant paid a sum of Rs. 1 lakh to them in March 2010 for booking of Plot No. 20 in their Kallekad Project. Thereafter, he paid further amounts at different intervals, making it a total of Rs. 15,80,000/-. The appellant/OP-1 is a private limited company, carrying on the business of developing and construction of buildings and villas. The complainant deposited the amount with them in response to their advertisements inviting applications for the said Project. The value of the property consisting of land and plot no. 15 and 16 and the villa was stated to be Rs. 20 lakhs. According to the complainant, he purchased the said property for his own use and occupation and hence, he was covered under the definition of consumer, as per section 2(1)(d) of the Consumer Protection Act, 1986. The OP-1 issued receipts from time to time for the deposit of money with them. However, despite repeated demands, they failed to execute and register an agreement for sale. The complainant stated that he demanded his money back from the OPs, following which they issued three cheques of a total amount of Rs. 18 lakh, but the said cheques were dishonoured by their Bank for want of sufficient funds. The complainant filed the consumer complaint in question, seeking directions to the OP-1 to pay him the balance principal amount of Rs. 15,31,700/- and an interest of Rs. 7,09,452/- on the same, the total being Rs. 22,41,152/-. The complainant also demanded a compensation of Rs. 5 lakh for mental harassment etc. and Rs. 1 lakh as cost of litigation.

(3.) The complaint was resisted by the OPs by filing a written statement before the State Commission, in which they admitted that the complainant had paid Rs. 1 lakh to them for booking plot No. 20 in their Kallekad project. They stated, however, that the complainant wanted to sell the booked plot for a higher rate within two years, meaning thereby that he was just an investor and the said transaction was a commercial transaction, rather than being for personal use. It was also stated that the complainant never asked them for the construction of a house. On the other hand, they had paid him huge amount of Rs. 12 lakhs as abnormal interest, but did not insist for cash receipts for each and every payment made to him.