State Consumer Disputes Redressal Commission
Ram Pat Jindal vs D.S.I.D.C on 9 October, 2007
IN THE STATE COMMISSION : DELHI IN THE STATE COMMISSION : DELHI (Constituted under Section 9 clause (b)of the Consumer Protection Act, 1986 ) Date of Decision: 09-10-2007 Appeal No.A-184/2004 (Arising from the order dated 23-01-2004 passed by District Forum(New Delhi), Barracks, Kasturba Gandhi Marg, New Delhi in Complaint Case No.OC/1220/02) Shri Ram Pat Jindal Appellant Prop. Girish Plastics, Through R/o 49-A, Banarsi Das Estate, Mr. S. Kapoor, Timarpur, Advocate. Delhi. Versus D.S.I.D.C., Respondent Through its Chairman, Through N-36, Bombay Building, Mr. B.C. Gaur, Connaught Circus, Manager, New Delhi. CORAM : Justice J.D. Kapoor- President Ms. Rumnita Mittal - Member
1. Whether reporters of local newspapers be allowed to see the judgment?
2. To be referred to the Reporter or not?
JUSTICE J.D. KAPOOR, PRESIDENT (ORAL) On account of delayed refund of the amount received by the respondent towards industrial plot, the District Forum has vide its order dated 23rd January, 2004 directed the respondent to pay interest @ 9% on the amount of Rs. 10,50,000/- w.e.f. 01-01-2001 till it is refunded and also to pay Rs. 10,000/- as cost of litigation.
2. Feeling dissatisfied with the rate of interest as well as the period from which the interest was awardable, the appellant has preferred this appeal.
3. Case of the appellant before the District Forum, in brief, was that he applied for the allotment of an industrial plot vide application number 17245 as per the policy of the Government for relocation of industrial units from non conforming areas. Further that the plot bearing number B-2619 measuring about 250 sq. meter in section I Narela was allotted to the appellant vide letter dated 16-09-2000 of respondent and this allotment was further confirmed vide letter dated 16-12-2000 whereby the appellant was called upon to pay the balance amount within 2 months on or before 31-12-2000 failing which the appellant was to pay interest @ 18% per annum and even could face cancellation of the plot and appellant deposited the entire total amount of Rs. 10,50,000/- which includes the earnest money and other demands and paid this amount on 29-12-2000 i.e. before the due date which is 31-12-2000. The other required documents were also furnished with the respondent.
But instead of giving the possession of the said plot the respondent informed vide letter dated 10-09-2001 that the appellant is not eligible for the allotment of the said plot under the said scheme and no reason was mentioned in the said letter. Further that the complainant was a tenant and in compliance to the orders of the Honble Supreme Court and the directions of respondent surrendered the possession of the same to the landlord and thereafter came on to road which disturbed him mentally and physically and he also suffered heavily in terms of finance. That the OP after cancellation of the plot refunded the entire amount to the appellant. the order of cancellation is vide letter dated 10-09-2001 and the money was refunded on 05-04-2002 but this amount of refund is without any interest although letters were written to the respondent to refund the amount with interest but respondent has not paid any heed to it. Besides interest @ 18% appellant also claimed an amount of Rs. 2 lacs on account of damages suffered by him due to cancellation of his plot and also coming on road due to handing over the possession of the factory area to the landlord where he was earlier running his factory.
4. While resisting the claim of the appellant, the respondent averred that the relief was claimed by the appellant before the Honble High court and the writ petition was dismissed on 24-01-2002.
The plot could not be allotted to the appellant as per the policy of the Govt. of NCT of Delhi in terms of the Cabinet decision No. 273 dated 23-08-1997 as the existing area of the factory premises of the appellant was covered under the INSITU area declared by the Govt. of NCT of Delhi and as such the unit was not required to be shifted to the industrial area. Further that the cancellation was as per the cabinet decision and, therefore, there was no cause of action existing in favour of the appellant. It was specifically mentioned in para 7(ii) on page 9 of the application form that Commission of Industries reserves the right to accept/reject any/all applications or alter any of the conditions under which these applications have been invited without assigning any reason and keeping in view the above said conditions/terms of the application form the present appeal was not maintainable.
5. As per details given by the appellant the earnest money of Rs. 1,20,000/- was paid on 24-12-1996 and the balance amount of Rs. 1,05,000/- on 24-09-2000 and Rs. 8,25,000/- on 27-12-2000. The grievance of the appellant is that he should have been awarded interest on the earnest money from the date of deposit as the decision was taken by the Delhi Cabinet on 23-08-1997 and inspite of this decision the respondent accepted balance amount in the year 2000. So much so plot was allotted but possession was not handed over because of the policy and the decision of the Government taken in the year 1997.
6. As is apparent from the aforesaid conspectus of facts that the respondent continued accepting balance amount even after the decision of the Cabinet in the year 2000 inspite of the fact that the decision of the Cabinet for not handing over possession of the plot was taken in August 1997. At the most the respondent, may be due to inadvertence, should have refunded the earnest money to the appellant after the decision of the Cabinet taken in August 1997 but instead had raised demand of the balance amount in the year 2000.
7. On the premise of aforesaid facts, we partly allow the appeal by modifying the impugned order to the following extent:-
(i) Respondent shall pay interest @ 9% w.e.f.
01-09-1997 till April 2002, the date when the refund was made and shall pay interest @ 9% on the balance amount of Rs. 9,30,000/- from 01-01-2001 till the date of its refund. Rest of the order is maintained.
8. Appeal is modified to the aforesaid extent.
9. F.D.R./Bank Guarantee, if any, furnished by the appellant be returned forthwith after completion of due formalities.
10. A copy of this order as per the statutory requirements, be forwarded to the parties free of charge and also to the concerned District Forum and thereafter the file be consigned to Record Room.
11. Announced on the 9th October, 2007.
(Justice J.D. Kapoor) President (Rumnita Mittal) Member jj