L.D.A. vs Rakesh Kumar

BOTH these appeals relate to the same fact and can be conveniently disposed of together. Appeal No. 906/SC/98 is directed against an order dated 11.2.1998 passed by District Forum-II, Lucknow in Complaint Case No. 882/95, and Appeal No. 1032/SC/98 is directed against an order dated 11.2.1998 passed by District Forum-II, Lucknow in Complaint Case No. 884/95.

LEARNED Counsel for the parties are present and we have heard them. It is not necessary to give facts in details as the only controversy between the parties is whether the award of interest @ 18% per annum from 1.7.1994 to 31.12.1996 is justified on the facts of the case.

It is an admitted case that the house was allotted to the complainant by the appellant on the cash down basis on 28.12.1993. The entire price of the house was Rs. 93,200/- and the entire amount had been deposited by the complainant by 11.3.1994 but the possession of the house could not be delivered by the appellant, to the complainant till 1996 on account of the facts the lease plan was not available with the appellant. When the allottee applied for change of house and the another house was allotted to the complainant on 6.8.1986. Possession was handed over on 24.1.1997. According to the judgment of the learned District Forum the possession of the first allotted house could not be delivered on account of the facts that the letter dated 28.6.1995 shows that appellant had not received lease plan from maintenance unit. Learned Counsel for the appellant has challenged these findings during the course of the arguments but, we do not find any force in this argument. Even the letter dated 28.6.1995 has not been filed by the appellant in order to show that inference drawn by the learned District Forum was not correct. When the lease plan was not ready the possession could not have been delivered by the appellant. On account of the fault of appellant, the possession of the earlier allotted house could not be delivered to the complainant. The learned District Forum was perfectly justified in awarding interest from 1.7.1994 to 31.12.1996.

AS to the rate of the interest it has been argued that there was no agreement between the parties to pay compensation in the form of interest, therefore, it cannot be allowed. The appellant also charges interest on the deposit of the amount to the allottees. Thereafter, if there is deficiency in service on the part of the appellant then it has also to pay compensation. The only method to determine compensation to award the same in the form of interest. Actually, it is not the interest which is paid by the appellant but it is compensation which is actually paid. Therefore, compensation in the form of interest @ 18% per annum is justified and no interference is required. The appeal has no force and liable to be dismissed. Learned Counsel for the complainant states that the damages which have been awarded in the form of the interest be adjusted towards the lease rent etc., which is payable by the complainant for getting the sale-deed. Thereafter, it is directed that the amount of interest of Rs. 93,200/- from 1.7.1994 to 31.12.1996 @ 18% per annum in the form of damages shall be payable. The appellant shall calculate the amount due after deducting the above amount of the compensation within one month from the date of copy of the judgment is issued. The appellant shall intimate the amount and other details to the complainant by registered post. The complainant will also contact the Secretary of L.D. A. about the amount to be paid by him and other formalities to be done. When the complainant is intimated about the amount it shall be deposit by the complainant within 15 days of the receipt of the intimation. Within one month from the deposit of the amount by the complainant and fulfilling all other formalities regarding execution/registration of the sale deed appellant shall get the registration done. The award of interest @ 2% per annum is set aside in view of facts of the case. The appeal is decided as aforesaid. Let copies be made available to the parties as per rules. Appeals disposed of.