RAJ. HOUSING BOARD vs YOGENDER SINGH PUNDIR-Opposite party

THESE two cross appeals are being disposed of by this common order since both of them arise out of an order of the District Forum, Alwar dated 19.6.1995. Rajasthan Housing Board has filed Appeal No. 1421/1995 against the direction of the Forum to restrict the realisation of interest @ 13% p.a. on the money to be recovered from the respondent Yogender Singh whereas Yogender Singh in Appeal No. 1533/1995 has sought that he is not liable to pay even 13% interest on the amount due towards the Housing Board.

WE heard the learned Counsel for the complainant Yogender Singh and the departmental representative Sh. G.C. Gupta on behalf of the Rajasthan Housing Board and have carefully gone through the material available on the record. It is undisputed that Yogender Singh had originally applied to obtain a constructed house from the Housing Board on hire purchase basis which he subsequently got it converted under the outright sale basis. He was accordingly allotted House No. : 1 Ta 14 Pratapnagar, Manu Marg, Alwar and was issued an allotment order claiming an amount of Rs. 77,685.80 from the complainant. Since Yogender Singh was a Government employee he sought the sanction of loan from the Government which was timely granted but since it was to be disbursed in five instalments he could not pay the amount for the said allotted house in one attempt. He however, paid the aforesaid amount between 2.2.1982 to 27.6.1986. The complainant Yogender Singh was delivered possession on and thereafter he demanded the Housing Board to issue him No Due Certificate. He wrote again and again to the Housing Board right from the year 1987 till 1991 asking the Housing Board to communicate him the lease money which he has to pay for the said house. It appears that the Housing Board did not respond to any of his communication earlier than 15.5.1992 through which it demanded an amount of Rs. 35,572/-. This amount included the lease money of Rs. 2,795/-. Finding that the Housing Board was asking for excessive amount he approached the District Forum to seek redress from the penalty and interest included by the Housing Board from their demand dated 15.5.1992. The complaint was opposed by the Housing Board and after consideration of the pleadings of the parties and evidence led there, the Forum decided the complaint by awarding partial relief to the complainant. Both of the parties feeling aggrieved have now approached this Commission as stated earlier.

The only controversy which has been raised before this Commission by the parties is whether the Housing Board was within its right to charge amount of penalty and excessive rate of interest @ 21% of the lease money to be recovered from the appellant on the alleged arrears or not. The complainant has filed a number of communications starting with 21.12.1987 till 7.3.1992 asking the Housing Board to supply him the exact amount of lease money and No Due Certificate but the Housing Board did not pay any heed to it. For the first time they demanded an amount of Rs. 35,572/- from the respondent vide their communication dated 15.5.1992. The conduct of the Housing Board in not responding to the repeated communications and efforts to ascertain his liability to pay the exact amount of lease money exhibits deficiency in service on the part of the Housing Board. The Forum has not given any thought to this aspect. But instead has allowed the Housing Board to charge interest @ 13% from the complainant on the due amount. The complainant came to know about the exact amount of lease money i.e. Rs. 2,795/- only through Board''s communication dated 15.5.1992. It appears that the complainant has also not cared to pay this amount of Rs. 2,795/-.

BE that as it may so far as the deficiency in service on the part of the Housing Board is concerned it is writ large on the record of this case and they themselves cannot penalize their genuine customer by demanding penalty and interest at an enhanced rate of 21% p.a. Consequently we are of the firm view that the Housing Board was not entitled to claim interest @ 21% p.a. as also the penal charge included by them in their communication dated 15.5.1992. Rate of interest allowed by the District Forum is appropriate. Coming now to the conduct of the complainant. It is suffice to note that when the complainant has come to know that the Housing Board has calculated the lease money at Rs. 2,795/- he should have taken steps to get this amount deposited. In any view of the matter the complainant has to pay this lease amount of Rs. 2,795/- as calculated by the Housing Board in their communication dated 15.5.1992. Since the complainant has not paid this amount he has to pay interest on this particular amount with interest @ 9% p.a. w.e.f. 1.6.1992 till date of payment. In the result, Appeal No. 1421/1995 filed by the Housing Board and Appeal No. 1533/1995 by the complainant succeed partially and it is directed that the complainant shall pay to the Housing Board an amount of Rs. 2,795/- with interest @ 9% p.a. w.e.f. 1.6.1992 till date of payment within a period of three months failing which the rate of interest would stand enhanced at 12% p.a. Cost on parties. Appeals partially allowed.