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Judgment
ARMY Welfare Housing Organization (AWHO), located at Kashmir House, Rajaji Marg, New Delhi - 11 was formed as a welfare society and registered under the Societies Registration Act, 1860 to construct self-financed houses for eligible serving/ retired personnel/ their widows from their personal funds on ''no profit no loss basis''. This society has no funds of its own nor receives any grant from Government. Its legal status is of a trustee or agent. After constructing and giving possession of the dwelling units (DU) the excess funds deposited with the society are required to be refunded.
THE members are required to pay funds in instalments as per the progress of the project. Penal interest was charged on late payments and relief interest is given on early/excess payment of an instalment. In this case the complainant was handed over flat No. 234, Sector 37, Noida on 14.6.1986 after making full payment including penal interest of Rs. 13,493.20 due to delayed payment. During audit a sum of Rs. 18,200 was found to have been charged in excess. This was refunded by cheque on 17.10.1994. The case of the petitioner/ complainant is that no interest has been paid to him on the amount refunded in spite of several verbal and written requests to do so, though AWHO is clearly liable to pay the interest at least 15% per annum (compounded) for the period lapsed since handing over the possession of the flat till date i.e. 14.6.1986 to 17.10.1994. As he did not get any positive response he filed a complaint before the District Forum. The District Forum after hearing the parties and perusing the evidence held that as the issues raised are complicated in nature and require detailed examination of the documents and cross-examination of witnesses which is not possible in the summary proceedings adopted by the forum, the Forum dismissed the complaint and petitioner was advised to move the appropriate Civil Court.
Aggrieved by the order of District Forum the petitioner filed appeal before the State Commission. The State Commission came to the following conclusions: "The circumstances of the refund of the excess amount charged by the respondent amount to deficiency in service in not properly calculating the amount chargeable from the members of the society and the refund of the said amount after about eight years entitles the appellant to some reasonable compensation. However, at the same time we also find that the society like the one in question is constructing houses on behalf of the members on no profit no loss basis and does not earn profit by way of depositing the money as FDR. They spent this money towards the construction of houses and therefore taking overall view of the matter and refund of the amount after eight years we deem it compensation of Rs. 10,000 would meet the ends of justice."
DISSATISFIED with the compensation awarded by the State Commission the petitioner has filed this revision petition. Col. Kapur who appeared in person, argued that gross injustice has been done to him as the State Commission has awarded only Rs.10,000 whereas his claim was to the tune of Rs. 2,67,000. He submitted that apart from Rs. 50,000 which is towards the defects, deficiency and mental harassment and physical strain, the respondent has to pay interest @ 15% compounded on excess principal amount w.e.f. 14.06.1986 to 17.10.1994 and on residual amount thereafter till 31.12.2004. Findings : The Army Welfare Housing Organization (AWHO) as the name itself suggests is a welfare organization and runs on no profit no loss basis. This society has no funds of its own or does not receive any grant from the army. This has been admitted by the complainant in his complaint. This organization has constructed a large number of houses which has benefited eligible serving, retired personnel as well as widows of the personnel who served in armed forces. The complainant is one of the beneficiaries as he has got a house built by this organization. The complainant was allotted flat No. 234, Sector 37, Noida by draw of lots held on 29.10.1985. Upon his payment of full amount/cost, was handed over possession of his flat which was accepted by him without any protest. There was no complaint made by him in respect of the construction of the dwelling unit till 27th April 1991 i.e. almost five years after the possession of the flat was handed over to him.
THE complainant did not raise any objection against the calculations made by the AWHO. THE final closure of the accounts of the housing project in which the complainant secured the flat could be completed in September 1994. Accordingly, the amount due to all the allottees of Phases I to XII was refunded (including to the complainant) from October 1994 onwards. Thus, no interest on Rs. 18,200 refunded to the complainant is admissible and or payable to the complainant. It is useful for us to refer to the letter dated 17th October, 1994 which reads as under: Further to our circular letter No. B/03015/N/Ph-I to XII closing dated 23.9.1994 addressed to all the owners of flats of Noida Phases I to XII. THE exact amount refundable flat-wise has since been calculated. It is stated for your information that AWHO in the recent past has cleared full payment of ground rent to Noida authorities by making one-time lumpsum payment on 10 years'' basis. Since a large number of the owners of flats of Phases I to XII had been charged ground rent for periods less than ten years, the outstanding arrears as applicable in each case are now being adjusted out of the refund due to each owner. Accordingly, after adjusting the ground rent arrears and any other outstanding dues if so applicable in your case, Syndicate Bank, Dhaula Kuan, New Delhi, Cheque No. 926070 dated 17.10.1994 is enclosed as per details below: (a)share of refundable amount in respect of your flat Rs. 18,200 (b)Less deductions as under 70 (i)Ground rent (ii)Other dues Net Amount refundable Rs. 18,130"
The complainant had received this amount without any murmur or protest, whereas he has filed the present complaint before the District Forum on 22.10.997 three years and five days after its receipt. As respondent is a organization which works for the welfare of the serving/ retired armed force personnel and their widows it cannot be burdened with unwarranted claims. Though the District Forum has dismissed the complaint asking the complainant to go to the Civil Court, the State Commission has generously awarded Rs. 10,000. While awarding compensation, the observations made by the State Commission are reiterated as under: However at the same time we also find that the society like the one in question is constructing houses on behalf of the members on no profit no loss basis and does not earn profit by way of depositing the money as FDR. They spent this money towards the construction of houses.
IN view of the above, we do not find any merit in this petition, hence the Revision Petition is dismissed. Revision Petition dismissed.