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Judgment
Avm J. Rajendra, Avsm Vsm (Retd.), Presiding Member
The present First Appeal has been filed under Section 19 of the Consumer Protection Act, 1986 (the Act) against the Order dated 11.06.2018 passed by the learned State Consumer Disputes Redressal Commission, U.P (the State Commission), in Consumer Complaint No.236 of 2017 wherein the State Commission directed the Appellant/ OP to refund the deposited amount of Rs.27,30,030/- along with an interest @ 18% per annum to the Respondent/Complainant from the date of deposit till its realization along with a sum of Rs.10,000/- towards litigation costs.
Heard the learned Counsel for the Parties on the residual issues of interest over and above 5% per annum/compensation/cost of litigation vide order dated 10.10.2019 passed by this Commission.
The learned Counsel for the Appellant/OP submits that the State Commission has granted interest @ 18% per annum on the deposited amount which is on higher side and it should be reduced to the reasonable rate of interest in the facts and circumstances of the case.
On the other hand, the learned Counsel for the Respondent/ Complainant submits that the rate of interest @ 9% per annum is justified and reasonable. He has relied upon the following judgments:
a. Wg. Cdr. Arifur Rahman Khan & Ors. Vs. DLF Southern Homes Pvt. Ltd. & Ors. Civil Appeal No.6239 of 2019;
b. M/s. Laureate Buildwell Pvt. Ltd. Vs. Charanjeet Singh, Civil Appeal No.7042 of 19;
c. Kolkata West International City Pvt. Ltd. Vs. Devasis Rudra, Civil Appeal No.3182 of 19.
I have thoughtfully considered the detailed arguments advanced by the learned Counsel for both the parties.
As regards the rate of interest applicable and the scope for payment of compensation in such matters, the Honble Supreme Court in Experion Developers Pvt. Ltd. Vs. Sushma Ashok Shiroor, in Civil Appeal No.6044 of 2019 decided on 7.4.2022 has held that:-
We are of the opinion that for the interest payable on the amount deposited to be restitutionary and also compensatory, interest has to be paid from the date of the deposit of the amounts. The Commission in the Order impugned has granted interest from the date of last deposit. We find that this does not amount to restitution. Following the decision in DLF Homes Panchkula Pvt. Ltd. Vs. DS Dhanda and in modification of the direction issued by the Commission, we direct that the interest on the refund shall be payable from the dates of deposit. Therefore, the Appeal filed by purchaser deserves to be partly allowed. The interest shall be payable from the dates of such deposits.
At the same time, we are of the opinion that the interest of 9% granted by the Commission is fair and just.
In view of the facts of the case, the submissions made by the learned Counsels for both the parties and the established precedents by the Honble Supreme Court in the matter, the impugned Order dated 11.06.2018 passed by the learned State Commission, U.P., Lucknow is modified with the following directions: -
ORDER
I. The Appellant shall refund Rs.27,30,030/- to the Complainant/Respondent, along with simple interest @ 9% per annum from the respective dates of deposit till the date of payment, within a period of one month from the date of this order. In the event of delay, the amount payable shall carry interest @ 12% per annum from the date of expiry of one month till the realization of the entire amount.
II. The Appellant shall pay cost of litigation quantified as Rs.10,000/- to the Complainant/ Respondent, within one month from the date of this order.
Consequently, the instant First Appeal No. FA/1600/2018 stands disposed of.
All the pending Applications, if any, also stand disposed of.
The statutory amount or any other amount deposited by the Appellant, if any due, be refunded/adjusted after due compliance of the order.