ROURKELA DEVELOPMENT AUTHORITY Vs. SARASWATI NAYAK

JUDGEMENT

(1.) THE opposite party in C. D. Case No. 410 of 1996 filed before the District Forum, Sundargarh-II, Rourkela has filed this appeal challenging the orders dated 6. 5. 1997 of the District Forum to return to the complainant the earnest money Rs. 1,000 deposited by her together with interest @12% per annum on the said amount from 15. 11. 1989 to 20. 6. 1994 and with interest @ Savings Bank of National Bank from 21. 6. 1994 till the date of payment.

(2.) FACTS in brief out of which this appeal aros are that, the complainant/respondent had applied for a shop making earnest money deposit of Rs. 1,000 as per a draft dated 15. 11. 1989 with the opposite party of the proposed Commercial Complex, Chhend Housing Project, Stage-I, Rourkela. The opposite party was to complete the said commercial complex obtaining loan from HUDCO, New Delhi. Since HUDCO delayed the matter, opposite party dropped the project for want of funds. According to the complainant, in spite of her request the said amount is not refunded to her. Therefore, alleging deficiency in service against the opposite party, complainant filed the C. D. case claiming said amount of Rs. 1,000 with interest and cost of litigation Rupees 500. The opposite party while admitting to have received said Rs. 1,000, denied to have caused deficiency in service to the complainant, who according to him, is entitled to get refund of said Rs. 1,000 only without interest as the earnest money is interest free. Opposite party has stated not to have neglected complainant in respect to refund of said amount on the ground that though vide letter No. 3699/rrit dated 20. 6. 1994, he informed complainant to take refund of said amount yet the letter has been received unserved with postal remark "left". Therefore, as complainant has changed her address she could not get refund of the said amount and opposite party, therefore, had prayed for dismissal of the C. D. case.

(3.) GOING through the case of both parties, the District Forum held opposite party to have caused deficiency in service in not refunding said amount and directed opposite party to refund said amount with interest, even though earnest money deposit is interest free with an observation that the opposite party is enjoying interest accrued from said amount from the date of its deposit.