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Judgment
This appeal has been filed under Section 19 of The Consumer Protection Act, 1986 in challenge to the Order dated 05.12.2018 of the State Commission in complaint no. 940 of 2017.
We have heard the learned counsel for the builder co. (the appellant herein). No one appears for the complainants (the respondents herein). We have also perused the material on record, including inter alia the State Commission’s impugned Order dated 05.12.2018 and the memorandum of appeal.
The matter relates to a builder-buyer dispute. Admitted facts of the case are that the complainants deposited a total sum of Rs. 11 lakh with the builder co. between April 2011 and July 2011 for a residential plot. No allotment letter was issued by the builder co. Neither was a formal agreement executed by the builder co.
The complainants inter alia gave a written request to the builder co. for refund of the deposited amount but the builder co. did not do so. They went before the State Commission on 30.10.2017. The State Commission vide its impugned Order dated 05.12.2018 allowed the complaint and ordered the builder co. to refund the amount of Rs.11 lakh deposited by the complainants with interest at the rate of 12% per annum from the respective dates of deposit till realisation along with lumpsum compensation inclusive of litigation costs of Rs. 25 thousand.
Learned counsel of the builder co. submits that the builder co. is ready and willing to refund the amount of Rs. 11 lakh deposited by the complainants with reasonable interest. The only point of contention is apropos the rate of interest of 12% per annum awarded by the State Commission. According to the learned counsel the same is unjust and inequitable, on the higher side. The submission is that rate of interest of 8% to 9% per annum would be just and equitable.
We see that the State Commission has passed a well-appraised reasoned Order. It has aptly dealt with the various issues germane to the dispute. With reasons recorded it has dismissed the preliminary objection regarding the complainants not being ‘consumer’ under the Act 1986. In respect of the substance of the dispute it has inter alia also pointed out the various infringements of the provisions of PAPRA (Punjab Apartments and Property Regulation Act, 1995) on the part of the builder co.
There can be no two opinions that since no allotment of any plot was ever made by the builder co. it has to necessarily refund the amount deposited by the complainants with reasonable interest.
In respect of the rate of interest, it is seen that the State Commission has drawn its rationale from a state legislation (i.e. Punjab Apartment and Property Regulation Act, 1995 (PAPRA)) and has objectively determined the rate of interest without much subjectivity. Even otherwise, in any case, in the given facts and circumstances of the instant case, inter alia considering the continuing troubles and travails the complainants have been put to from April 2011 onwards, the rate of interest of 12% per annum appears to be just and equitable, and the compensation so awarded by way of interest on the deposited amount appears to be commensurate with the loss and injury suffered. No good reason to disturb the same is forthcoming.
The award made by the State Commission appears to be just and equitable and is hereby confirmed.
The appeal, being bereft of worth, is dismissed.
The amount if any deposited by the builder co. in compliance of this Commission’s Order dated 10.04.2019 along with interest if any accrued thereon shall be forthwith released by the State Commission to the complainants as per the due procedure. The balance awarded amount shall be made good by the builder co. within four weeks from today, failing which the State Commission shall undertake execution, for ‘enforcement’ and for ‘penalties’, as per the law.
The Registry is requested to send a copy each of this Order to all parties in the appeal as well as to the State Commission immediately. The stenographer is also requested to upload this Order on the website of this Commission immediately.