State Consumer Disputes Redressal Commission
Raj Kumar & Ors. vs Sahara India Commercial Corporation ... on 25 April, 2014
H.P. STATE CONSUMER DISPUTES REDRESSAL COMMISSION,
SHIMLA.
First Appeal No.419/2013
Date of Presentation: 30.12.2013
Date of Decision: 25.04.2014
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(1) Raj Kumar Mehra, son of late Shri Roshan Lal Mehra;
(2) Mohit Mehra, son of Shri Raj Kumar Mehra;
(3) Indira Mehra, wife of Shri Raj Kumar Mehra;
All Residents of 84, The Mall, Shimla-171 001 (H.P.).
.......... Appellants.
Versus
(1) Sahara India Commercial Corporation Limited,
Sahara India Centre, 8th Floor, 2, Kapoorthala Complex,
Aliganj, Lucknow (U.P.)-226 024,
Through its Managing Director.
(2) Sahara City Homes Sales & Marketing Corporation Limited,
Sahra India Bhawan, 1, Kapoorthala Complex,
Aliganj, Lucknow (U.P.)-226 024,
Through its Chief Marketing Manager.
(3) Sahara City Homes Sales & Marketing Corporation Limited,
At Avadh Palace, Near High Court, Mall Road,
Shimla-171 001 (H.P.),
Through its Manager.
(4) Mohd. Jamil Siddiqui, Working as Agent,
Sahara City Homes Sales & Marketing Corporation Limited,
House No.37, Idgah Colony, Lakkar Bazar,
Shimla-171 001 (H.P.)
..........Respondents.
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Coram
Hon'ble Mr. Justice (Retd.) Surjit Singh, President
Hon'ble Mrs. Prem Chauhan, Member
Whether approved for reporting?1 Yes.
1
Whether Reporters of the local papers may be allowed to see the order?
Raj Kumar Mehra & Ors. Vs. Sahara India Commercial Corporation Ltd. & Ors.
(F.A. No.419/2013)
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For the Appellant: Mr. Neeraj Gupta, Advocate.
For Respondents: None.
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O R D E R:
Justice (Retd.) Surjit Singh, President (Oral) Appellants have preferred this appeal, under Section 15 of the Consumer Protection Act, 1986, against the order dated 13.11.2013, of learned District Consumer Disputes Redressal Forum, Shimla, whereby, though their complaint, under Section 12 of the Consumer Protection Act, 1986, which they filed against the respondents, has been allowed, yet compensation awarded for harassment & mental torture, is not upto their expectation and no compensation, whatsoever, has been awarded, on account of alleged deficiency in service and interest on the amount of money, ordered to be refunded, has also been ordered to be paid from the date of complaint and not from the dates, when the money was actually paid, in parts.
2. Appellants filed a complaint, under Section 12 of the Consumer Protection Act, 1986, against the respondents, alleging that the respondents are builders and they got published an advertisement that Page 2 of 8 Raj Kumar Mehra & Ors. Vs. Sahara India Commercial Corporation Ltd. & Ors.
(F.A. No.419/2013) ________________________________________________________________________ they were going to construct some flats/houses at Zirakpur, near Chandigarh. Acting on the advertisement, the appellants contacted an agent of respondents No.1 to 3 at Shimla. The said agent is impleaded as respondent No.4, herein.
3. Appellants then deposited a sum of `1,35,350/- as booking money and also paid money, subsequent thereto, on different occasions, on the assurances given by the respondents that work at site would begin soon and possession of flat, booked in their names, would be delivered to them, within short period. However, the respondents did not even start the construction of flats, until the filing of complaint, which was filed on 23.07.2009. On the aforesaid allegations, appellants prayed for the refund of money, paid by them, with interest at the rate of 18% per annum, compensation to the tune of `1.00 lac for mental harassment, torture, another sum of `30,000/- as compensation for deficiency in service and `35,000/-, on account of litigation cost.
4. Respondents contested the complaint and pleaded that the flat had not been booked in the names of the appellants, but at the same time, they Page 3 of 8 Raj Kumar Mehra & Ors. Vs. Sahara India Commercial Corporation Ltd. & Ors.
(F.A. No.419/2013) ________________________________________________________________________ did not deny having received a sum of `9,92,582/-, including initial deposit of `1,35,350/-, which according to the appellants, was the booking money.
5. Learned District Forum, vide impugned order, has directed the respondents to refund the amount of money of `9,92,582/-, with interest at the rate of 12% per annum, from the date of filing of the complaint, to the date of payment of the aforesaid amount of money and also to pay `10,000/-, as compensation, and another sum of `3,000/-, as litigation expenses.
6. Appellants' grievance is that interest on the amount of money ordered to be refunded, should have been directed to be paid from the dates of payments made to the respondents and that for mental harassment and torture, a sum of `1.00 lac ought to have been awarded and also compensation for deficiency in service, as claimed in the complaint, should have been directed to be paid.
7. Nobody appears for the respondents, though, on the previous date, Shri Shashi Bhushan Singh, Advocate appeared for respondents No.1 to 3 Page 4 of 8 Raj Kumar Mehra & Ors. Vs. Sahara India Commercial Corporation Ltd. & Ors.
(F.A. No.419/2013) ________________________________________________________________________ and respondent No.4 appeared in person. So, the respondents are proceeded against ex-parte.
8. We have heard learned counsel for the appellants and gone through the record.
9. It is submitted by the learned counsel representing the appellants that a sum of `10,000/-, by way of compensation has been awarded by learned District Forum, under a wrong impression that the appellants have demanded only that much amount of money, by way of damages. He has drawn our attention to para-1 of the impugned order, in which, while summarizing the facts, it is stated that a sum of `10,000/-, has been demanded, as compensation for harassment, mental torture and `30,000/- for deficiency in service.
10. It is true that learned District Forum has recorded the figure of `10,000/- as compensation demanded for harassment & mental torture and another figure of `30,000/-, as compensation claimed for deficiency in service, but that would not mean that the appellants, in fact, are entitled to the entire amount of `1.00 lac, claimed by them, as compensation for mental torture and harassment. Page 5 of 8 Raj Kumar Mehra & Ors. Vs. Sahara India Commercial Corporation Ltd. & Ors.
(F.A. No.419/2013) ________________________________________________________________________ Learned District Forum has noticed the figure of `30,000/- demanded as compensation, on account of deficiency in service, but no compensation on this score, has been granted. Therefore, it cannot be said that a sum of `10,000/- has been awarded as compensation for harassment and mental torture, because of wrong noticing of the figure of claim on this score, in para-1 of the impugned order.
11. As a matter of fact, in cases pertaining to consumer disputes, compensation is awarded for the actual financial loss, sustained by the complainant. Compensation, on account of harassment & mental torture is only token money, unless facts and circumstances warrant award of exemplary & punitive damages.
12. In the present case, appellants paid a sum of `9,92,582/-. Money has been ordered to be refunded, with interest at the rate of 12% per annum. Normally, interest is awarded at a rate, equivalent to the rate of interest, which the Banks pay, on fixed deposits. Rates of interest for the last about 10-15 years on fixed deposits, are not more than 9% per annum and that is why, the Courts and Consumer Page 6 of 8 Raj Kumar Mehra & Ors. Vs. Sahara India Commercial Corporation Ltd. & Ors.
(F.A. No.419/2013) ________________________________________________________________________ Fora have been awarding interest at rates, not exceeding 9% per annum.
13. In this case, interest has been awarded at the rate of 12% per annum and this higher rate, thus takes care of compensation/damages, claimed by the appellants for the alleged mental harassment and torture and deficiency in service.
14. However, we do feel that the appellants ought to have been awarded interest, not from the date of complaint, which was filed on 23.07.2009, but from the dates, on which payments were made by the appellants. Initial payment of `1,35,350/- was made by the appellants on 09.03.2005. Thereafter, sixteen instalments, each for `53,577/-, were paid on different dates. The dates of payments of such instalments are; 22.12.2005, 31.01.2006, 20.02.2006, 22.03.2006, 25.04.2006, 31.05.2006, 23.06.2006, 31.07.2006, 31.08.2006, 25.09.2006, 25.10.2006, 29.11.2006, 29.12.2006, 31.01.2007, 28.02.2007 & 23.03.2007.
15. In view of above discussion, we partly allow the appeal and modify the order of learned District Forum, to the extent that interest on the amount of `9,92,582/-, shall be payable by the Page 7 of 8 Raj Kumar Mehra & Ors. Vs. Sahara India Commercial Corporation Ltd. & Ors.
(F.A. No.419/2013) ________________________________________________________________________ respondents from the dates, on which the payments were made by the appellants to them, as indicated in the just preceding paragraph.
16. Disposed of.
17. A copy of this order be sent to each of the parties, free of cost, as per Rules.
(Justice Surjit Singh) President (Prem Chauhan) Member April 25, 2014.
*dinesh* Page 8 of 8