DELHI DEVELOPMENT AUTHORITY vs Ram Kishan

THE limited grievance of the appellant against the order dated 1.7.2004 passed by the District Forum whereby the appellant/DDA has been directed to pay interest @ 9% p.a. on the excess amount of Rs. 20,459/- received by it from the date it was deposited with appellant till the date of order as the District Forum has not taken into consideration the fact that the said amount was refunded to the respondent on 26.5.2000 and, therefore, the award of interest on the aforesaid amount subsequent to 26.5.2000 unjustified and illegal. Since the receipt of Rs. 20,459/- by the respondent is not in dispute as is demonstrated from the impugned order, we do not feel the need of issuing notice to the respondent for considering the grievance of the appellant.

THE respondent was allotted a flat by the appellant on hire purchase basis. Subsequently he made request to convert into cash down basis. Accordingly the cash down payment was made by the respondent. However, in the meantime the payment by instalments by the other consumers were deferred and the respondent asked for interest over the excess amount received by the appellant which was to the tune of Rs. 20,459/-. It was vide letter dated 23.6.1992 that the respondent for the first time requested the appellant to refund excess amount along with the request to issue conveyance deed in the joint names of the respondent and his wife. However, the conveyance deed was issued in the joint name but refund of the excess amount was not made. It was only after 8 years of long wait that the said excess amount was refunded to the respondent vide its letter dated 26.5.2000. The factum of refund of excess amount demonstrates that the respondent was entitled to this amount from the date when he made the demand of refund vide his letter dated 23.7.1999, not from the date when the instalments of other consumers were deferred and by way of calculation the amount deposited by the respondent was found to be excess to the tune of Rs. 20,459/-.

On the face of it the impugned order granting the interest from the date of its deposit till the date of the order is not justified and is not in accordance with law as the respondent was not entitled for any interest beyond 26.5.2000, the date on which he had received the excess amount. It was not a case where the excess amount paid by him was not refunded at all. Had it been so only then the respondent was entitled for the interest till the date of order.

AS regards the contention of the Counsel for waiving of the compensation amount of Rs. 5,000/- we do not find any reason to waive it off as the appellant made the respondent wait for 8 long years for the refund whereas they even themselves do not wait for one day if the instalment is delayed and charge interest. The amount of compensation is reasonable and minimal and needs no interference. In the result, we partly allow the appeal and modify the order by directing the appellant to pay interest @ 9% w.e.f. 14.4.1990 when the last payment was made till 26.5.2000. The aforesaid payment shall be made within one month. FDR/Bank Guarantee, if any, furnished by the appellant be returned forthwith. A copy of this order as per the statutory requirements, be forwarded to the parties free of charge and also to the concerned District Forum and thereafter the file be consigned to Record Room. Appeal partly allowed.