ANURADHA SHARMA Vs. KAILASH NATH AND ASSOCIATES

JUDGEMENT

(1.) The complainant, Mrs. Anuradha Sharma has approached this Commission under Sec.36b (a) of MRTP Act, 1969 (the Act for brief) charging the respondent with adoption of and indulgence in unfair trade practices within the meaning of Sec.36a thereof. It has been stated by her in the complaint that in response to an advertisement in the Newspapers inviting applications for booking flats in the "group Housing Scheme" known as "dcm" Green Acres" at DCM Complex, Kishan Ganj-Bara Hindu Rao, Delhi, she booked a residential flat measuring 1,100 sq. ft. @ 950/- per sq. ft. and paid Rs.75,000/- as advance and in lieu thereof, the respondent issued a receipt dated 8th May, 1989. It has been further stated by her that the advance payment was to be subsequently transferred to the Flat Booking Account and no further payments were to be made till the agreement to sell was signed between the parties. However, as there was a dispute between DCM Ltd. and its employees, the development of the property and construction of residential flats could not take place.

(2.) It has been complained that despite the dispute, the respondent sent a letter dated 15.4.1990 asking her to pay a sum of Rs. l,15,000/-being 20% of the cost of the residential flat within 30 days failing which the booking would be cancelled. Later by another letter dated 26.12.1991, the respondent again asked for payment of Rs.1,15,000/- stating that the Municipal Corporation of Delhi had released the lay out plans and also warning that in case the payment was not made, interest @ 2% per month would be charged. The complainant thereupon brought to the notice of the respondent through her letter of 17.8.1995 that although no construction activity at the site had taken place, progress of the project may be intimated and also a copy of the agreement to sell may be sent to her.

(3.) Since there was no response from the respondent, she again wrote a letter dated 22.4.1996 repeating her request. The respondent again vide letter dated 18.5.1996 made a demand for Rs.1,15,000/- and also for interest on that amount. The grievance of the complainant is that vide her letter of 10.6.1996 she sent two cheques of Rs.54,000/- and Rs.61,000/- drawn on Bank of India and UCO Bank respectively as there was a threat of cancellation of the booking by the respondent. It has been further complained that the respondent also demanded interest amounting to Rs.1,67,900/- and gave threat of cancellation of the booking if the interest amount was not paid and in order to avoid cancellation of the booking, she paid the interest amount by two cheques for Rs.87,900/- and Rs.80,000/- drawn on Bank of India and UCO Bank respectively. It has been complained that the respondent is indulging in unfair trade practices within the meaning of 36a of the Act by luring the complainant into booking the flat, by giving threats of cancellation, by not encashing the cheques and by demanding interest @ 24% per annum on delayed payments whereas it is itself giving interest only @ 12% per annum in the event of withdrawal of the advance deposit, paid at the time of booking.