Manohar Infrastructure & Constructions Private Limited vs Neelam Bhardwaj

Heard counsel for the parties.

The appeal has been filed with delay of 23 days. The appellant has filed IA/14423/2021, for condoning the delay. Impugned order was passed on 11.01.2021 and the appeal has been filed on 12.03.2021 i.e. during continuance of order of Supreme Court in Suo Moto Writ Petition No.3 of 2020, waiving the limitation. As such IA/14423/2021 is allowed and delay in filing of the appeal is condoned.

Manohar Infrastructure & Constructions Private Limited, (opposite party) has filed above appeal from the order of State Consumer Disputes Redressal Commission, UT, Chandigarh dated 11.01.2021 passed in Complaint Case no.68 of 2020 whereby the State Commission had directed as follows:

(i) To deliver possession of relocated plot no.787 aforesaid, complete in all respects, to the complainant, within a period of 3 months from the date of receipt of a certified copy of this order.

(ii) To pay compensation @Rs.40/- per square meter per month of area of the said plot, as per clause 35 of the agreement and also interest @6% p.a. on the entire deposited amount, for delay in delivery of possession of the plot in question, starting from the promised date of delivery of possession i.e. 03.01.2020 till 31.01.2021, within a period of 30 days from the date of receipt of a certified copy of this order, failing which the entire amount shall carry penal interest @12% p.a. from the date of default till this payment is made.

(iii)     To pay compensation @Rs.40/- per square meter per month of area of the said plot aforesaid and also interest @6% p.a. on the entire deposited amount w.e.f. 01.02.2021, onwards (per month), by the 10th of the following month to the complainant till actual delivery of physical possession of the plot, complete in all respects.

Thereafter, the complainant shall be at liberty to get the sale deed executed directly from the Registering Authority through the opposite party, on making payment of stamp duty charges/other charges as applicable under law. At the same time she shall be liable to make the remaining payment towards price of the said plot, as per demands raised by the opposite party and, in future, shall not be left with any immunity of payment of delayed interest, in case there is delay in making payments on her part, except/save, if the demand is raised in the absence of development activities at the project site.

(iv)    To pay interest @12% p.a. on the entire amount paid by the complainant for the period from 18.01.2012 till 04.07.2016 (the date of agreement of relocated plot no.787) towards the financial loss caused to her, as the amount deposited by her towards booking of initial plot starting from 18.01.2012 till 04.07.2016, was utilized by it (opposite party) for its own purposes and the plot booked in the Palm Garden was not provided to her and she was relocated after a long delay of about 4 years of initial booking, which further caused her mental agony and harassment; and cost of litigation to the tune of Rs.35,000/- within a period of 30 days, from the date of receipt of a certified copy of this order, failing which the said amounts shall carry penal interest @15% p.a. from the date of default till realization.

During arguments, the counsel for the appellant confined grievance of the appellant in respect of the delay compensation awarded by State Commission, and agrees for delayed compensation in the form of interest @6% per annum on the deposit of the respondent, for the delayed period. The respondent appears in person along with his advocate, states that delay compensation as awarded by State Commission is proper. Both the parties agree that due date of possession expired on 04.07.2019 as per terms of the agreement. A three Judges Bench of Supreme Court in DLF Home Developers Limited Vs. Capital Green Home Buyers Association, (2021) 5 SCC 537, has held that delayed compensation in the form of interest @6% per annum on the deposit of the home buyer for the delayed period was just and fair compensation. The argument that delay compensation as provided in the agreement be given in addition to the interest @6% per annum, has not been accepted by Supreme Court.

In light of the judgment of Supreme Court as well as agreement on due date of possession, the appeal is partly allowed. The order of the State Commission is modified to the extent that the appellant shall pay delayed compensation in the form of interest @6% per annum on the deposit of the complainant from 05.07.2019 till the date of delivery of possession. The appellant shall deliver possession subject to compliance of the terms and conditions of the agreement, duly adjusting delay compensation, within three months from today.