SHIV CHARAN LAL Vs. GHAZIABAD DEVELOPMENT AUTHORITY

JUDGEMENT

(1.) Complainant Shiv Charan Lal in his complaint has approached for setting aside or cancelling the allotted flat and directing the opposite party not to levy any penal interest or in alternative refund the entire amount of Rs.1,02,500/- alongwith 18% interest and cost.

(2.) Facts of the case, stated in brief, are that the complainant deposited an amount of Rs.25,025/- on 29 February, 1988 in application form No.7045 for allotment of a flat. A sum of Rs.25,000/- was to be paid in a month's time of reservation and the rest amount was to be paid in four half yearly instalments. The allotment order was issued in favour of the complainant on 21st July, 1989 after a number of personal visits and harassment. The flat in question was allotted to the complainant after cancelling the same, according to the complainant. Due to some fraud committed by the Computer Cell, this flat was allotted to some other person. Vide letter dated 21st July, 1989 opposite party had stated that the payment schedule is enclosed, but no schedule was attached with the reservation letter mentioned above. The bank refused to accept the allotment money payable in four instalments in absence of payment schedule. It only accepted the first instalment which was payable within one month of the reservation amount. The payment schedule was not intentionally attached with the reservation letter for reasons known to the department.

(3.) Vide letter dated 29th October, 1992 a sum of Rs.3,04,882/- was demanded by the opposite party including a sum of Rs.1,04,287/- as penal interest. This amount was to be paid by 30.11.1992. The demand of penal interest is illegal as there was no delay on the part of the complainant because the payment schedule was not supplied to him. Thus the complainant has prayed for allotment of the same flat or in alternative for refund of the amount.