DELHI DEVELOPMENT AUTHORITY Vs. KRISHAN LAL NANDRAYOG

JUDGEMENT

(1.) This order will dispose of Revision Petition Nos. 627 of 1995 and Revision Petition No. 375 of 1995 as the facts in both the cases are the same and the order appealed against is also the same.

(2.) The limited point for decision in this case is as to whether the Delhi Development Authority is liable to pay interest for delay, after the specified period, in issuing the letter of allotment and compensation for delay in handing over the possession after issuing the letter of allotment. The District Forum-II, Delhi, where these complaints were filed in the first instance, held that the Delhi Development Authority cannot wriggle out from their commitment to pay interest at the rate of 7% p.a. for the period of the delay beyond 2 years from the date of acceptance of the application upto the date of issuance of the possession letter in view of the provision in the brochure for the 5th Self-Financing Housing Scheme, 1982 (SFS). The District Forum further directed the Delhi Development Authority to pay interest at the rate of 8% p.a. from the 16th day of the issuance of the possession letter upto the date of the delivery of the possession and Rs. 2,000/- as damages and costs of litigation to each of the complainants before them. The Delhi Development Authority appealed against this order of the District Forum dated July, 1992 before the State Commission, Delhi, which after examining the conditions as contained in Clause 10 of the Brochure issued by the Authority in 1992, not only upheld the decision of the District Forum in regard to the payment of interest but also examined the effect of amendment of Clause 10 of the brochure for varying rates of interests for different periods. Clause 10 (the unamended) of the brochures reads as follows:

(3.) As regards delay in, (a) the issue of letter of possession after the formalities were completed by the allottee, and (b) handing over of the possession of the flat to an allottee, the State Commission held that a period of three weeks each in respect of both the stages of action is reasonable enough for the Delhi Development Authority to complete the formalities and do the needful. For delay beyond this period of three weeks, the State Commission awarded an interest @ 15% on the total price of the flat to each complainant allottee. Appreciating the anxiety, tension and harassment, caused to the allottees by such delays, the State Commission also awarded a sum of Rs. 2,000/- as damages to each of the complainant allottee.