M P HOUSING BOARD Vs. PRAHLAD KUMAR JODHANI

JUDGEMENT

(1.) Revision Petition No. 1003/96, First Appeal No. 372/97 and First Appeal (Cross-Appeal) No. 323/98, First Appeal Nos. 289 to 301/98 and First Appeal (Cross Appeals) Nos. 309 to 321 /98 have arisen out of the relevant orders of the Madhya Pradesh State Consumer Disputes Redressal Commission and have been heard by us as connected matters, as facts in these cases are the same and common questions of aware involved. In the Revision Petition and First Appeals, Madhya Pradesh Housing Board (M.P. Grih Nirman Mandal), is the petitioner/appellant before us (opposite party in the original complaints) while in the Cross Appeals, the complainants in the respective original Petitions are the appellants.

(2.) Facts of the cases are broadly as follows : The M.P. Housing Board invited applications for registration of HIG houses under self-financing scheme in Lake View, Kohey Fiza, Bhopal; the advertisement dated 5.9.1991 in a local daily indicated the approximate cost of the house as Rs. 5,80,000/-. An amount of Rs. 58,000/- was to be deposited by the applicants towards registration on or before 10.10.1991 and the balance amount was to be deposited in five instalments, the 5th instalment being payable within a period of 18 months after acceptance of registration amount or on completion of house whichever is earlier. The other terms and conditions for allotment attached to the application forms are (i) the cost shown in the advertisement is an approximate one and the final cost will be determined on the basis of actual measurement and expenses incurred which will be binding on allottees and there can be a 10% increase in the above cost; (ii) the cost of corner plot/house will be 10% extra to the actual cost; (iii) the construction period of houses is decided as per rules but for any unavoidable circumstances, if there is any delay in construction, the allottee-applicant will not be entitled for any claim or damage; and (iv) there would be no change in dates already fixed for payment of instalments and in case payments are not made within stipulated time, the allotment can be cancelled without any prior notice. Draw for allotment of houses was held on 22.10.1991 and the Board intimated the successful applicants through their letter dated 15.11.1991 that four instalments each of Rs. l,04,000/-should be paid on 15.1.1992, 15.5.1992, 15.8.1992 and 15.11.1992 and the 5th instalment of Rs. 1,06,000/- on 15.5.1993. In this letter, the Board again stressed that the cost was totally approximate and the actual cost would be determined on the basis of actual measurement and cost incurred which would have to be accepted by the allottees. This initial allotment reference of 15.11.1991 of the Board is significant in two respects; the indicative ceiling of 10% increase in the cost of the house as also the words "on completion of house whichever is earlier" appearing in the advertisement alongwith the schedule date of payment of final instalment stood deleted. By this, the Board perhaps attempted to absolve itself of any cost overruns and time overruns. The Board issued the final letter of the allotment of houses on 14.11.1994 whereby it also intimated the total computed cost at levels higher than the original anticipated cost of Rs. 5,80,000/-. Subsequently, however, these additional amounts were marginally revised downwards through the Board's letter of February 10, 1995 and demanded to be paid by 28.2.1995.

(3.) Aggrieved by this demand for additional payment over and above their expected escalation of 10% of the original cost of Rs. 5,80,000/- and also alleging inordinate delay in delivery of possession beyond the stipulated date of final instalment namely 15.5.1993, the aforesaid fifteen allottees sought remedy under the Consumer Protection Act.