Reatox Builders & Developers Pvt. Ltd. & Anr vs Jaitesh & 2 Ors

Sudip Ahluwalia, Presiding Member

At the outset, Ld. Counsel for the Appellants submits that the Appellant is aggrieved by the award of compensation by way of interest on the rate of 12 % per annum by the Ld. State Commission which according to him is exorbitant in view of the decision of the Hon’ble Apex Court in Experion Developers Pvt. Ltd. Vs. Sushma Ashok Shiroor, in Civil Appeal No.6044 of 2019,decided on 07.04.2022, in which it was held that the reasonable compensation by way of interest awardable in such cases would be around 9% p.a. The relevant extracts from the decisions of the Hon’ble Apex Court in the said case are set out as below:-

“…32. 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 form 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 form the dates of deposit. Therefore, the Appeal filed by purchaser deserves to be partly allowed. The interest shall be payable form 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 and we find no reason to interfere in the Appeal filed by the consumer for enhancement of interest……”

Ld. Counsel for the Respondents from his side submits that he concedes to the applicability of the aforesaid decision in the present case, and therefore, insists that the refund of his deposits awarded by the Ld. State Commission be made expeditiously by the Appellant along with the interest as laid down by the Hon’ble Apex Court in the said case.

In view of such submission, the Appeal is allowed by partially modifying the Impugned Judgment of the Ld. State Commission. Compensation by way of interest awarded in favour of the Respondent/Complainant is reduced to 9 % per annum from the date of each respective deposits, from 12 % as directed by the

Ld. State Commission. Rest of the directions in the Impugned Order remain unaltered.

Such payment shall be made by the Appellant to the Respondents within 2 months from the date of this Order, failing which outstanding payments, if any, shall attract interest @ 12 % per annum.