State Consumer Disputes Redressal Commission
Ishita Takiar vs Ut Builders Etc. on 21 February, 2017
STATE CONSUMER DISPUTES REDRESSAL COMMISSION, PUNJAB
DAKSHIN MARG, SECTOR 37-A, CHANDIGARH
Consumer Complaint No.143 of 2013
Date of institution: 05.12.2013.
Date of Decision: 17.02.2017.
Balwinder Kaur widow of late Manjit Singh Rattan resident of House No.32,
Ajit Nagar, Near ICICI Bank, Patiala Punjab-147002.
...Complainant.
Versus
1. SBI Life Insurance Company Limited Corporate & Registered Office
Natraj MV Road & Western Express High Way Junction Andheri E,
Mumbai-400069 through its Chairman/Managing Director.
2. Chief Manager, Claims SBI Life Insurance Company Limited, Central
Processing Centre Kapas Bhawan Plot No.3A Sector No.10 CBD
Belapur Navi Mumbai - 400614.
3. Head - Claims SBI Life Insurance Company Limited Central
Processing Centre Kapas Bhawan Plot No.3A Sector No.10 CBD
Belapur Navi Mumbai -400614.
4. State Bank of Patiala, The Mall, Patiala through its
Chairman/Managing Director.
5. State Bank of Patiala, Theri, Patiala Branch 257 Ph.I Arun Estate
District Patiala Punjab-147002 through its Branch Manager.
....Opposite Parties.
Consumer Complaint under Sections 2,17 and
18 of the Consumer Protection Act, 1986.
Quorum:-
Hon'ble Mr. Justice Paramjeet Singh Dhaliwal, President
Mr. Vinod Kumar Gupta, Member
Mr. Harcharan Singh Guram, Member Present:-
For the complainant : Sh.Deepak Arora, Advocate For opposite parties No.1,2&3: Sh.Rajneesh Malhotra, Advocate For opposite parties No.4&5 : None Consumer Complaint No. 143 of 2013 2 HARCHARAN SINGH GURAM, MEMBER :
The complainant has filed this complaint under section 2, 17 & 18 of the Consumer Protection Act, 1986 (in short 'Act').
2. The relevant brief facts as averred in the complaint are that the complainant is the wife and nominee of late Shri Manjit Singh Rattan and he was insured under the SBI Life Insurance Policy No.70000001609 under State Bank of Patiala - Rinn Raksha Home Loan Scheme and another policy vide insurance policy No.65141649814 for a sum of `12,63,646/- and `20,18,880/- respectively. These policies commenced from 05.10.2012 with a sum assured of `20,18,880/- under the house loan scheme and he also obtained the other policy of SBI Life Rinn Raksha Home Loan Scheme for his loan account No.65141661693 through his employer State Bank of Patiala commencing from 05.10.2012 with an initial sum assured of `12,63,646/-. It was averred that the insured died on 24.02.2013 while on duty at Pauri Garhwal (Uttrakhand). It was pleaded that at the time of his death, necessary post mortem examination was conducted by the Senior Medical Officer, Pauri Garhwal (Uttrakhand) on 24.02.2013 and cause of death was opined due to Myocardial infarction with cardiogenic shock and main cause of death was heart failure. It was averred that the above twin insurance policies obtained by the deceased through his employer State Bank of Patiala and the amount of insurance policy was required to be credited in the loan account of the deceased. It was pleaded that the clause No.21 pertains to policy benefits and as per this clause, benefits under the policy would increase the amount of Consumer Complaint No. 143 of 2013 3 value to be paid by the insurance company on the passage of time. As such on the date of death, the amount liable to be paid under the said policies was to the tune of `20,73,258/- against the insured value of `20,18,880/- and similarly a sum of `13,12,787/- against the sum assured `12,63,646/-. The matter regarding insurance claim was taken-up through his employer State Bank of Patiala, Theri Patiala Branch and a letter received from the opposite parties was endorsed to the complainant, wherein it was mentioned that on the eve of obtaining aforesaid insurance policy, the deceased had signed declaration of good health. But, as per the records available with opposite parties No.1,2&3, wherein it stated that he was suffering from kidney disease prior to the date of enrollment of policy. He had given a false good health declaration and did not disclose material facts regarding his health before entering into the scheme, the claim under the aforesaid policies stand repudiated. It has been averred that the relevant facts and circumstances of the case have not been properly appreciated by opposite parties No.1,2&3 while repudiating the claim. The complainant being widow of the deceased is entitled to the aforesaid amount of `33,86,045/-. It is averred that at the time of obtaining the aforesaid policies, the insured was posted as Chief Manager in State Bank of Patiala. It is averred that the aforesaid policies were obtained by him through his employer and he was enjoying good health at the time of obtaining the policies. The insured died due to Cardiac Arrest, while he was on duty to Pauri Garhwal and not due to any kidney problem as mentioned by opposite parties in the repudiation letter. The averments in the Consumer Complaint No. 143 of 2013 4 complaint are to the effect that life assured did not in anyway suppressed the material facts at the time of obtaining the policies. The opposite parties are not justified under any circumstances upon his death to repudiate the claim amount to be paid under the said policies. On failure to receive any suitable reply from opposite parties, consumer complaint has been filed seeking directions be issued against opposite parties No.1,2&3, to pay a sum of `33,86,045/- along with interest @ 12% from the date of repudiation, to pay `5,00,000/- by way of damages on deficiency of service on the part of opposite parties, to pay `50,000/- as litigation expenses.
3. The complaint has been contested by opposite parties No.1,2&3 who filed their joint written reply in which they have disputed averments in the complaint. It has been averred that the declaration of good health should be signed by the healthy persons who are not suffering from any of the disease mentioned therein, thus who suffered from any of the ailment are not eligible to be covered under the group insurance scheme. The insured is well within its rights to repudiate the claim arising under the insurance cover if it is found that there was suppression of material facts. In the group insurance scheme, the privity of the contract is between the Master Policy holder and the insurance company. As an evidence of the contract, a Master Policy containing of the terms and conditions of the insurance coverage is issued to the Master Policy Holder. The terms and conditions of the Master Policy are binding on all the insured members. The individual members of the Master Policy are issued "Certificate of Insurance"(hereinafter referred to as "COI") as Consumer Complaint No. 143 of 2013 5 evidence of their membership in the Group Scheme. It is admitted that opposite parties SBI Life Insurance Company has issued a group housing scheme for the borrowers of the loan of the different categories like Housing Loan, Vehicle Loan, Tractor loan etc. availed from State Bank of Patiala and its group banks, where under the borrower-member is offered insurance subject to the terms and conditions incorporated in the Master Policy. The privity of contract is between the Master Policyholder i.e. State Bank of Patiala and the insurer namely SBI Life. The deceased life assured Sh.Manjit Singh Rattan was issued certificate of insurance for both the loan accounts availed by him. The opposite parties took preliminary objections and contested that the complainant has filed a complaint before Ombudsman Chandigarh and as such, he was not permitted to file consumer complaint in this Commission as he had already availed one option of being heard before a quasi judicial body established by Central Government's notification under Redressal of Public Grievance Rules, 1998. It is averred that the complaint filed before Commission is hit by Section 11 of Civil Procedure Code under the principle of Res Judicata. As per this section it reads as "No court shall try any suit or issue in which the matter directly and substantially in issue has been directly and substantially in issue has been directly and substantially in issue in a former suit between the same parties, or under the same title, in a court competent to try such subsequent suit or the suit in which such issue has been subsequently raised and has been heard and finally decided by such court." It is averred that the life insurance contract is a contract of utmost good faith. In the Consumer Complaint No. 143 of 2013 6 instant case, the deceased life assured committed a breach of the principle of utmost good faith by suppressing material facts of his pre- existing illness and committed a breach of doctrine of utmost good faith by suppressing the material facts. Deceased-Manjit Singh suppressed the material of its disease prior to the commencement of risk from 05.10.2012 and 07.11.2012 and did not disclose that he was suffering from heart disease and kidney disease. In the medical and history record, he specifically declared in the form that he was of a sound mental and of good physical health and he was not suffering from any disease. He was not been hospitalized for last three years for any disease and has not been advised or treating for any critical illness. It has been pleaded that the documents placed on record clearly shows that he was suffering from heart disease and kidney disease. Thus, he had suppressed material facts deliberately.
4. On merits, it is admitted that deceased life assured Sh.Manjit Singh Rattan availed housing loan from State Bank of Patiala under loan accounts Nos.65141649814 and 65141661693 and had availed Rinn Raksha Group Insurance Scheme under the Master Policy No.70000001609 issued to State Bank of Patiala through Membership Form Nos.700274203 and 700274205 both dated 04.10.2012. The risk of insurance commenced under loan account No.65141649814 from 07.11.2012 for a sum insured of `20,18,880/- and risk commenced under loan account No.65141661693 from 05.10.2012 for a sum insured of `12,63,646/- as per the certificate of insurance, the amount outstanding in loan accounts is required to be paid by them as the life assured expired on Consumer Complaint No. 143 of 2013 7 24.02.2013 and the amount of loan outstanding was to the extent of `20,73,258/- and `13,12,787/- respectively. It is pleaded that under point No.7 of medical questionnaire, it was written "(i) Have you consulted any doctor for surgical operations or have been hospitalised for any disorder other than minor cough, cold or flu during the last five years?" Under para (iii) "Have you ever been treated for or told that you have diabetes or raised blood sugar, high blood pressure, heart attack, chest pain or any heart disease, stroke/paralysis or any other disorder of the circulatory system etc.? To all these questions, the DLA replied in a negative. It is pleaded that the DLA died on 24.02.2013 and a claim arose in just 3 months 17 days and 4 months 19 days respectively pertaining to two policies. As per the investigation conducted by their agents and who enquired into the matter, it was found that the DLA was suffering from heart disease and kidney disease prior to the date of enrolment under the insurance cover note. It was averred that deceased Manjit Singh had undergone Echo Cardiography and Colour Doppler on 01.01.2010. It was further submitted that a prescription slip dated 26.01.2010 given by Dr.Manmohan Singh, wherein Manjit Singh underwent investigation at the Department of Cardiology of Punjab Institute of Heart Diseases. As per ultrasonography report dated 16.04.2010 of Alpha Radiological Centre, Patiala provides the clear picture that DLA had undergone ultrasonography on 16.04.2010. As per prescription slip dated 14.04.2012 of Patiala Dialysis & Kidney Center, it is clear that the DLA was taking treatment for Membraneous Glomerulonephritis (in partial remission).
Consumer Complaint No. 143 of 2013 8
5. The leave record was obtained from State Bank of Patiala, from which it revealed that he availed leave on medical grounds from 08.10.2010 to 30.10.2010. From this leave record, it is clear that he had taken medical treatment from various places and availed medical reimbursement facility from its employer. It is clearly established that DLA was suffering from pre-existing illness on 05.10.2012 and 07.11.2012 respectively on the dates of signing the membership forms/DGH on 04.10.2012. From perusal of these records, it is clear that the DLA was suffering form heart disease and kidney disease prior to the enrolment in the insurance schemes. It is further pleaded that an insurance policy is to be construed as per the policy terms and conditions of the documents which is basic contract between the parties and nothing can be added or subtracted by giving different meanings to the words mentioned therein and reiterated their averments that the repudiation of the claim is a valid repudiation and DLA was not entitled for any relief as prayed in the complaint and it needs to be dismissed.
6. To substantiate her claim, the complainant tendered in evidence her affidavit along with documents Ex.C-1/A to Ex.C-7 and closed the evidence. On the other hand, opposite parties tendered affidavit of their authorised representative along with documents Ex.OPA to OP-28 and closed the evidence.
7. We have heard learned counsel for the parties and have perused the record carefully.
Consumer Complaint No. 143 of 2013 9
8. Learned counsel for the complainant contended that all the allegations made in the complaint stands proved from the affidavit of the complainant and documents placed on the record. It is proved on the record that the complainant agreed to purchase the insurance policy cover through State Bank of Patiala from opposite parties No.1,2,3 in order to secure his loan accounts availed from his employer vide Ex.C-1. He argued that as per Ex.C-1 first premium receipt of `1,68,880/- for the sum assured of `20,18,880/- by opposite parties which was paid by the DLA, and he was covered under Master Policy No.70000001609 for initial sum assured of `20,18,880/-. From this exhibit, it is clear that this policy has been issued through his employer State Bank of Patiala having its Branch at Theri, Patiala. His record of medical leave was duly within the knowledge of his employer. It was the duty of SBOP also to check the record of the member of the Master Policy being loanee of State Bank of Patiala instead of repudiating the genuine claims after submission of the same. He argued that cause of action as alleged in the medical records produced by opposite parties does not pertain to the cause of death of the deceased but as per post-mortem report, the cause of death is that of cardiac arrest. Counsel for the complainant argued that prima-facie the premium for floater policies obtained by the DLA was paid by him alone and not by the bank and once, they accepted the premium then they cannot wriggle out from their responsibility of making good insurance amount at a later date by way of claiming that the deceased was having pre-existing disease and suppressed the material facts from it about his good health. Consumer Complaint No. 143 of 2013 10
9. The learned counsel for the opposite parties argued that as per the record obtained from the insured employer, it reveals that the complainant was having pre-existing disease and gave wrong information at the time of filling-up of a proposal form and argued that his case is fully covered by judgement of Hon'ble National Commission on the ground of suppression of material facts while obtaining insurance policy on the ground of utmost good health.
10. The learned counsel for the OPs further argued that usually, master policies are issued in favour of the banks, who remits the insurance premium and they do not have any concern to the fact that any amount of premium, which was remitted to them under these policies was remitted by the husband of the complainant or by the bank.
11. It was not in their purview to look into who has paid the premium to them. It was prima-facie the duty of the bank who has out-sourced insurance policy. He further argued that the National Commission has also decided the case on the averments of concealment of material facts at the time of filling-up of the proposal form had upheld the decision of repudiation of the insurance claim. The learned counsel for OPs argued that though as per the certificate of insurance, it is correct that the amount of insurance cover was `20,18,880/- pertaining to the loan amount outstanding at the time of advance and also a second loan insurance for `12,63,646/- was given to the deceased at the request of the outsourcing branch of State Bank of Patiala. It was prima-facie the duty of the bank, who Consumer Complaint No. 143 of 2013 11 has out sourced insurance policy, to inform about the true picture of health of its employee.
12. In order to decide the controversy at hand, we find that he has already availed opportunity in front of Ombudsman. We do not agree with the contentions raised by the opposite parties that once a consumer appeals before Bank Ombudsman or Insurance Ombudsman, he/she stands debarred from approaching the Consumer Forums. Under Ombudsman scheme, the matter is taken- up due to omission and commission of the insurance companies in repudiating the claim whereas under Consumer Forums, the cases are taken for deficiency in service and unfair trade practice as such consumer is entitled to approach Consumer Foras even if one has earlier approached the office of Ombudsman to look into his or her grievances.
13. We find that the DLA was an employee of State Bank of Patiala and floater policy was issued by State Bank of India. We are of the opinion that the insurance companies are not doing any exercise of finding out whether the insured concealed any material facts about ones health at the time of issuance of policies. The companies are only trying to repudiate the claim when an insured dies or try to repudiate the claim whenever any eventuality arises when an insurance claim is raised. At that time, the insurance companies wake-up and try to wriggle out of their responsibilities in order to avoid to pay out genuine insurance claims. In the instant case also, we are of the view that insurance company was having all Consumer Complaint No. 143 of 2013 12 the leave record of the husband of the complainant at their disposal at the time of filling up of the proposal form. They could have examined all the documents at the initial stage and may have refused to cover the amount of housing loan under the floaters policies of State Bank of Patiala, once they accepted the huge amount of premium i.e. `1,68,880/- and `1,13,646/- from the complainant, then it is not right on their part to repudiate the claim of insurance when the same arose.
14. We are of the opinion that some ailments can spread after decades lurking in the body of an individual, until they suddenly spring to life. Many people have diseases that one already have, without knowing. The disease remains dormant in the body for years. Some illness have incubation period of anywhere from years to decades. Some diseases wait in the body for decades before striking. Moreover, Coronary Artery disease can remain dormant for many years (silent Coronary Artery disease). At any time and at any age, it can strike without warning, thus changing one's life forever. During the course of arguments, counsel for the complainant argued that Hon'ble Supreme Court has decided a case titled as "Balwinder Kaur (D) Thr. LRs. & others Vs. Life Insurance Corporation of India & others", decided in Civil Appeal No.7969 of 2010 wherein it has been stated that after taking the premium of insurance for covering the loan amounts of the husband of the complainant, they have now come up with the plea that the DLA had given false declaration for availing the insurance cover from their agency. As such, when there is no nexus between the cause of death and the Consumer Complaint No. 143 of 2013 13 disease, then the claim cannot be repudiated. In that case Hon'ble Supreme Court allowed the claim of DLA.
15. In order to decide the controversy, we have perused Ex.OP-2 and Ex.OP-3 from which, the date of birth of the DLA is shown as 10.10.1954 meaning thereby that on 04.10.2012, he was of 58 years of age. We have also perused investigation report Ex.OP-7, wherein the investigator had appended certificates pertaining to medical treatment obtained from Gandhi Heart Clinic, by Mr.Manjit Singh as on 01.01.2010 in this certificate, the age of the patient is shown as 54 years. However, this record does not provide any address of the patient as such we are of the opinion that as per their own record, the patient was of 58 years of age as on 05.10.2012, then how he can be of an age of 54 years on 01.01.2010. He should be a patient of 56 years instead of 54 years. In view of the discrepancy in the Ex.OP-7, the same cannot be held to be that of the DLA. Similarly documents to Ex.OP-8, Ex.OP-9, Ex.OP-10, Ex.OP- 11, Ex.OP-12, Ex.OP-14 are of different dates of the year of 2010 showing the age of the patient examined by different doctors having the name as Manjit Singh of an age of 54 or 55 years on the dates of examination without mentioning the address of patient in these exhibits, thus, the identity of DLA is not established from these exhibits. These documents cannot be said to be pertaining to the DLA.
16. We have examined Ex.OP-22 pertaining to leave certificate issued by employer of the DLA for having availed leave from 08.10.2010 to 30.10.2010 and the same does not state for which Consumer Complaint No. 143 of 2013 14 reason this leave was taken whether for getting himself admitted in a hospital or for general run down condition and thus, is silent as to the cause for which he had availed this leave.
17. We have looked into Ex.OP-13 of Columbia Asia, as per the exhibit, date of admission and discharge is of the same date i.e. 04.08.2010 and this was for getting a biopsy done for his kidney and no kidney ailment is shown in this exhibit, wherein it is written that follow-up with prior appointment after kidney biopsy report be availed.
18. It has been held by Himachal Pradesh State Consumer Disputes Redressal Commission, Shimla in case "ICICI Lombard General Insurance Company Ltd. Vs. Jasbir Singh", reported in 2014(1) CLT 220, in the modern day to day wear and tear of the body every person performing serious types of daily chores gets affected and suffers from blood pressure and mellitus diabetes and same can be cured by taking medicines. The record which has now been produced by the surveyor for having taken medical reimbursement by the husband of the complainant issued by Dr.R.K.Sharma, doctor on the panel of State Bank of Patiala vide Ex.OP-17, Ex.OP-18, Ex.OP- 19, Ex.OP-20, Ex.OP-21, Ex.OP-22, pertains to reimbursement of medicine charges of diabetes by State Bank of Patiala. These facts were in the knowledge of the OPs before covering him as a member under master policy issued to State Bank of Patiala.
19. OP could have easily declined to cover the DLA if the investigations were conducted before allowing him to be a member under master policy issued to State Bank of Patiala. The amount of Consumer Complaint No. 143 of 2013 15 premium of `1,68,880/- under policy No.70000001609 vide membership form No.700274203 was paid by the DLA as shown under Ex.OP-2. Similarly, sum of `1,13,646/- was paid by the DLA for having covered his loan amount of `12,63,646/- under the floater policy No.70000001609 vide membership form No.700274205. From the perusal of these exhibits, these certificates were issued in the name of DLA showing the amount of premium received by OPs for covering the loan amount of the DLA. Thus, it cannot be presumed that OPs were not aware that the premium for covering the DLA for his loan outstanding were not recovered from the DLA and that it was given by the bank in whose favour the master policy was issued.
20. Sequel to the above, we find merit in the complaint and the same is allowed to the extent of 75% of the claim amount on non- standard basis. The complaint is allowed on non-standard basis as we find that though the DLA was taking domiciliary treatment for kidney. He was to inform the full details about his health at the time of filling-up the proposal form. We also hold that insurance company being a subsidiary of State Bank of India and State Bank of Patiala being an associate of State Bank of India was having all the privilege to go through the records of employees of the associates of State Bank of India. As such, it cannot be presumed that they were not given the opportunity to go through the records especially of all the employees of these banks when they covered members under master floater policy issued by SBI Life Insurance Company in favour of State Bank of Patiala.
Consumer Complaint No. 143 of 2013 16
21. The complainant is further allowed the amount of `40,000/- as lumpsum compensation on account of harassment and mental agony suffered by him alongwith litigation cost of `20,000/-. Opposite parties are directed to pay the amount of policies and credit in the loan account of DLA held with State Bank of Patiala within 30 days from the date of receipt of copy of the order. On their failure to pay the directed amount within the stipulated period, interest @ 12% p.a. shall be paid on the directed amount including compensation till its credit from the date of repudiating the claim. Opposite parties No.4&5 are directed to liaison with the opposite parties No.1,2&3 in order to get the amount from them in order to close the account of the DLA at their end. They are further directed not to charge any interest on the loan amounts of two loan accounts of DLA from the date of his death and are further directed to recover the balance amount from the complainant, in order to close the account.
22. The case could not be decided within the statutory period due to heavy pendency of court cases.
(Justice Paramjeet Singh Dhaliwal)
President
(Vinod Kumar Gupta)
Member
February 17, 2017 (Harcharan Singh Guram)
Lb/- Member
STATE CONSUMER DISPUTES REDRESSAL COMMISSION, PUNJAB DAKSHIN MARG, SECTOR 37-A, CHANDIGARH.
Consumer Complaint No.91 of 2013
Date of institution : 04.09.2013.
Date of decision : 21.02.2017.
Ishita Takiar wife of Sh. Jatinder Kumar Takiar, resident of House No.B-12, Seema Apartments, Plot No.07, Sector 11, Dwarka, New Delhi-110075.
....Complainant.
Versus U.T. Builders & Promoters Limited, through its Managing Director, having its office at Green Estate, Barwala Road, Derabassi, District S.A.S. Nagar (Mohali).
IInd Address:
SCO No.210-211, 1st Floor, Sector 34-A, Chandigarh-160022.
....Opposite Party.
Consumer Complaint under Section 17 of the Consumer Protection Act, 1986.
Quorum:-
Hon'ble Mr. Justice Paramjeet Singh Dhaliwal, President Mr. Harcharan Singh Guram, Member Present:-
For the complainant : Shri Gorav Kathuria, Advocate For the opposite party: Ex parte.
HARCHARAN SINGH GURAM, MEMBER :
The complainant, Sudhir Kumar, has filed this complaint under Section 17(1)(a)(i) of the Consumer Protection Act, 1986 (in short, "the Act") for the issuance of following directions to the opposite parties:-Consumer Complaint No.91 of 2013 2
i) to handover the fully constructed flat or in alternative to refund the entire amount of `17,50,000/-, paid by the complainant to the opposite parties;
ii) to pay interest @ 18% per annum from the date of receipt of the payments till actual date of realization of the amount;
iii) to pay an amount of Rs.4 lakhs to the complainant towards mental harassment and agony suffered by the complainant; and
iv) to pay 10% discount on basic sale price of `17,50,000/-, amounting to `1,75,000/-;
v) to release the penalty amount of `4,23,900/-, which is due till date, along with interest @ 18%.
2. The relevant brief facts as averred in the complaint are that the opposite party is involved in the business of builders/promoters to construct and develop flats, houses, apartments, colonies etc. for residential purposes. It published various attractive brochures regarding the unique township for fine living, ideal location, incomparable setting, 24 hours back up and water supply, window and split AC installation, etc. Being impressed with the commitment and assurances of the opposite party, the complainant and her husband enquired from the opposite party, as to how the flats would be allotted to the intended buyers and it committed that like Government Bodies, it would give public notice and will hold draw in the presence of intended buyers. Thereafter, the complainant made up her mind to book a 3 Bedroom Apartment Consumer Complaint No.91 of 2013 3 measuring 1426 sq.ft. having super area of 1570 sq.ft. category B and filled up Application Form No.5014 Ex.C-2, which was issued on 06.03.2007.
3. The cost of the flat was settled to the tune of `17,50,000/-. The complainant paid `11,00,000/- to the opposite party, vide cheque bearing No.184388 dated 06.03.2007, which was received by the opposite party, vide receipt No.906 dated 08.03.2007 Ex.C-3. After encashment of above said cheque, it issued allotment letter dated 27.03.2007 Ex.C-4 in the name of the complainant, perusal of which shows that it reduced super area from 1570 sq.ft. to1426 sq.ft. The complainant lodged protest with the opposite party, who assured to deliver the flat with unit area measuring 1426 sq.ft. and super area measuring 1570 sq.ft. After repeated demands, the opposite party agreed to acknowledge the delivery of flat with the said measurements, subject to the condition that the complainant should release the balance amount. The opposite party also assured at that time that the construction of the flat was in full swing, so the complainant should pay the balance amount. Accordingly, the complainant paid balance amount of `6,50,000/- to the opposite party, vide receipt dated 19.05.2007, Ex.C-5.
4. After various reminders, the opposite party provided written material, showing map and above said measurements of the flat, vide Ex.C-6. After perusal of Ex.C-6, the complainant came to know that the opposite party was having down payment plan with discount of 10% on basic sale price and 5% out of `17,50,000/- was payable to the opposite party at the time of receiving the possession Consumer Complaint No.91 of 2013 4 of the flat. However, the opposite party received excess amount by misrepresenting the facts. The opposite party is not in a position to complete the construction within the committed period, nor is ready to pay penalty @ `5/- per sq.ft. per month for delayed period. From 03/2009 to 08/2013, that penalty comes to `4,23,900/- and from 9/2013 onwards, the said penalty, which comes to `7,850/- per month till the delivery of possession, is payable.
5. The opposite party had completed parts of some of the blocks and had even delivered physical possession of the same to various customers, without holding any draw, but the complainant has not been delivered the possession of the flat. The opposite party is unable to provide electricity connections to the said flats and the persons living there are using temporary electricity connections on payment of commercial charges. The quality of construction and material fitted in the building is not upto the mark and the same is very poor. The opposite party is also not in a position to provide the basic amenities. The complainant issued letter dated 07.07.2013 Ex.C-7 to the opposite party, demanding the possession of the flat, penalty amount, excess amount charged, interest etc., but no response was received on its behalf.
6. Notice of the complaint was sent to opposite party through registered post A.D. Opposite party duly served. Acknowledgement received back duly signed. Opposite party served but none appeared at the time of first call even after second call. Accordingly opposite party was proceeded against ex-parte vide order dated 07.06.2016 of this Commission.
Consumer Complaint No.91 of 2013 5
7. To prove the allegations made in the complaint, the complainant proved on record his affidavit Ex.CA & Ex.CB and documents Ex.C-1 to Ex.C-7. No evidence was tendered on behalf of the opposite parties as they have been proceeded ex-parte.
8. We have heard the learned counsel for the complainant and have carefully gone through the records of the case.
9. It has been submitted by the learned counsel for the complainant that from the evidence produced by the complainant, which includes the Allotment letter Ex.C-2, it stands proved that the possession of the constructed flat was to be given to the complainant within a period of 24 months from the date of execution of the allotment letter. The payments were to be made in two modes; one under down payment plan and second under constructed linked payment plan. Allotment letter was issued on 27.03.2007 as such the possession was to be delivered by the opposite party to the complainant on or before 26.03.2009 under down payment, but they failed to do so. As per the terms of allotment letter, exact number of flat will be communicated to her after the final payment, which will be by way of draw of lots and would be informed to the allottees a particular flat. It has been argued by the counsel that the opposite party has allotted flats to other applicants and no draw of lots had taken place. It has been argued that opposite party has not complied with the statutory compliance. He further argued that flat situated at prime locations were sold by the opposite party on receipt of the premium and opposite party was not coming forward to deliver the Consumer Complaint No.91 of 2013 6 possession of the flat to the complainant for the best reasons known to them. He argued that opposite party was not raising construction at the site as per the commitments in the brochure. He has further argued that size of the flat stands reduced from 1570 Sq.Ft. to 1426 Sq.ft. whereas the complainant had paid the amount of super area of 1570 Sq.Ft. He argued that the construction and material used in the building is not upto the mark. As per their own commitment, quality of construction was very poor and sought directions to be issued either to allot the flat or to reduce the amount with compensation and litigation cost `33,000/- or as the Commission deems fit.
10. We have given thoughtful consideration to the arguments raised by the learned counsel for the complainant.
11. In order to decide the controversy in hand, it would be apposite to refer to the relevant provisions of Punjab Apartment and Property Regulation Act, 1995 (in short, PAPRA"), which are as follows:
3. General Liabilities of Promoter:-
(1) Notwithstanding anything in any other law for the time being in the force, a promoter, who develops a colony or who constructs or intends to construct a building of apartments, shall, in all transactions with persons taking or intending to take a plot or an apartment on ownership basis, be liable to give or produce, or cause to be given or produced, the information and the documents mentioned hereinafter in this section.
(2) A promoter who develops a colony or who constructs or intends to construct such building of apartments shall,-
(a) make full and true disclosure of the nature of his title to the land on which such colony is developed or such building is constructed or is to be constructed, such title to the land having been duly certified by an attorney-at-law or an advocate of not less than seven years standing, after he has examined the transactions concerning it in the previous thirty Consumer Complaint No.91 of 2013 7 years ; and if the land is owned by another person, the consent of the owner of such land to the development of the colony or construction of the building has been obtained;
(b) make full and true disclosure of all encumbrances on such land, including any right, title, interest or claim of any party in or over such land;
(c) give inspection on seven days, notice or demand,-
(i) of the layout of the colony and plan of development works to be executed in a colony as approved by the prescribed authority in the case of a colony; and
(ii) of the plan and specifications of the building built or to be built on the land as well as of the common areas and facilities and common services provided (including supply of electricity and water, sewerage and drainage systems, lifts, fire-fighting equipment), such plans and specifications being in accordance with the provisions of the building regulations, and approved by the authority which is required so to do under any law for the time being in force, indicating thereon what parts of the building and the appurtenant areas are intended to be kept as common areas and facilities in the case of apartments :
Provided that the number and sizes of the apartments shall conform to such building regulations, and the area of an apartment shall not exceed such limit as may be fixed by the competent authority;
(d) display or keep all the documents, plans and specifications or copies thereof referred to in clauses (a), (b) and (c) of this sub-section at the site and in his office and make them available for inspection to persons taking or intending to take a plot or an apartment and after the association is formed, he shall furnish the association a copy of these documents and of the sanctioned plan of the building;
(e) disclose the nature of fixtures, fittings and amenities, including the provision for one or more lifts, provided or to be provided;
(f)disclose on reasonable notice or demand, if the promoter is himself the builder, the prescribed particulars as respects the designs and the materials to be used in construction, and, if the promoter is not himself the builder, disclose all agreements entered into by him with the architects and contractors regarding the design, materials and construction of the building;
(g) specify, in writing, the date by which possession of the plot or apartment is to be handed over and he shall hand over such possession accordingly;
(h) except where there are no agreements about specific plots or apartments and allotment is made by draw of lots, prepare and maintain a list of plots or apartments with their numbers, the names and addresses of the parties who have taken or agreed to take plots or apartments, the price charged or agreed to be charged therefor, and the terms and conditions, if any, on which the plots or apartments are taken Consumer Complaint No.91 of 2013 8 or agreed to be taken;
Provided that the competent authority may direct that,-
(i) in the case of residential apartments, if the total number of apartments is one hundred or more, ten percent of the apartments; and
(ii) in the case of colony, if the total area of the colony is forty hectares or more, ten per cent of the area under residential plots and houses, be reserved for being sold or leased to such person belonging to such economically weaker section of society, in such manner and on such terms and conditions as may be prescribed;
(i) state in writing, the precise nature of and the terms and conditions governing the association to be constituted of persons who have taken or are to take the apartments;
(j) not allow person to enter into possession until an occupation certificate required under any law is duly given by the appropriate authority under that law and no person shall take possession of an apartment until such occupation certificate is obtained;
(k) make a full and true disclosure of all outgoings, including ground rent, if any, municipal or other taxes, charges for water and electricity, revenue assessment, interest on mortgages or other encumbrances, if any;
(l) give the estimated cost of the building and the apartments proposed to be constructed, or colony to be developed, and the manner in which escalation in such cost for valid reasons may be approved by mutual agreement ;
(m) make a full and true disclosure of such other information and documents in such manner as may be prescribed; and
(n) give on demand and on payment of reasonable charges true copies of such of the documents referred to in any of the clauses of this sub-section as may be prescribed.
4. Issuing of Advertisement or Prospectus:-
(1) No promoter shall issue an advertisement or prospectus, offering for sale any apartment or plot, or inviting persons who intend to take such apartments or plots to make advances or deposits, unless,-
(a) the promoter holds a certificate of registration under sub-section (2) of section 21 and it is in force and has not been suspended or revoked, and its number is mentioned in the advertisement or prospectus; and
(b) a copy of the advertisement or prospectus is filed in the office of the competent authority before its issue or publication.
(2) The advertisement or prospectus issued under sub-
section (1) shall disclose the area of the apartments or plots offered for sale, title to the land, extent and situation of land, the price payable and in the case of colonies, also layout of Consumer Complaint No.91 of 2013 9 the colony, the plan regarding the development works to be executed in a colony and the number and the validity of the licence issued by the competent authority under sub-section (3) of section 5, and such other matters as may be prescribed. (3) The advertisement or prospectus shall be available for inspection at the office of the promoter and at the site where the building is being constructed or on the land being developed into a colony, alongwith the documents specified in this section and in section 3.
(4) When any person makes an advance or deposits on the faith of the advertisement or prospectus, and sustains any loss or damage by reason of any untrue statement included therein, he shall be compensated by,-
(a) the promoter, if an individual; (b) every partner of the firm, if the promoter is a firm; (c) every person who is a director at the time of issue of
the advertisement or prospectus, if the promoter is a company :
Provided, however, that such person shall not be liable if he proves that,-
(a) he withdrew his consent to become a director before the issue of the advertisement or prospectus; or
(b) the advertisement or prospectus was issued without his knowledge or consent, and on becoming aware of its issue, he forthwith gave reasonable public notice that it was issued without his knowledge or consent; or
(c) after the issue of the advertisement or prospectus and before any agreement was entered into with buyers of plots or apartments, he, on becoming aware of any untrue statement therein, withdrew his consent and gave reasonable public notice of the withdrawal and of the reasons therefor. (5) When any advertisement or prospectus includes any untrue statement, every person who authorised its issue, shall be punished with imprisonment for a term which may extend upto one year or with fine which may extend upto five thousand rupees, or, with both, unless he proves that the statement was immaterial or that he had reason to believe and did upto the time of issue of the advertisement or prospectus believe that the statement was true.
5. Development of Land into Colony:
(1) Any promoter, who desires to develop a land into a colony, shall make an application in the prescribed form alongwith the prescribed information and with the prescribed fee to the competent authority for grant of permission for the same and separate permission will be necessary for each colony.
(2) On receipt of the application under sub-section (1), the competent authority, after making enquiry into the title to the land, extent and situation of the land, capacity of the promoter Consumer Complaint No.91 of 2013 10 to develop the colony, layout of the colony, conformity of the development of the colony with the neighbouring areas, plan of development works to be executed in the colony and such other matters as it may deem fit, and after affording the applicant an opportunity of being heard and also taking into consideration the opinion of the prescribed authority, shall pass an order, in writing, recording reasons either granting or refusing to grant such permission.
(3) Where an orders is passed granting permission under sub-section (2), the competent authority shall grant a licence in the prescribed form, after the promoter has furnished a bank guarantee equal to twenty five percent of the estimated cost of the development works certified by the competent authority and the promoter has undertaken to enter into an agreement in the prescribed form for carrying out completion of development works in accordance with the conditions of the licence so granted.
(4) The licence granted under sub-section (3) shall be valid for a period of three years and will be renewable from year to year on payment of prescribed fee.
(5) The promoter shall enter into agreement undertaking to pay proportionate development charges for external development works to be carried out by the Government or a local authority.
(6) The competent authority shall determine the proportion in which, and the time within which, the estimated development charges referred to in sub-section (5) shall be paid to the State Government, or the local authority, as the case may be.
(7) The promoter shall carry out and complete the development of the land in accordance with the provisions of the Urban Land (Ceiling and Regulation) Act, 1976 (Central Act 33 of 1976) and other laws for the time being in force.
(8) The promote shall construct or get constructed at his own cost schools, hospitals, community centres and other community buildings, on the land set apart for this purpose or transfer such land to the State Government either free of cost or upon payment of actual cost of developed land, as decided by the State Government, which shall be at liberty to transfer such land to any local authority or any person or institution on such terms and conditions as it may deem fit:
Provided that if, having regard to the amenities which exist or are proposed to be provided in the locality, the competent authority is of the opinion that it is not necessary to provide one or more of such amenities, it may exempt the promoter Consumer Complaint No.91 of 2013 11 from providing such amenities, either wholly or in part, on such terms and conditions as it may deem fit.
(9) The promote shall, where the total area of the colony is forty hectares or more, reserve upto ten per cent of the area under residential plots and apartments as the competent authority may direct, for being sold or leased to such persons belonging to such economically weaker sections of society, in such manner and on such terms and conditions, as may be prescribed.
(10) The promoter shall carry out all directions issued by the competent authority for ensuring due compliance of the execution of the layout and the development works therein and to permit the competent authority or any officer authorised by it to inspect such execution.
(11) The promoter shall be responsible for the maintenance and up keep of all roads, open spaces, public parks and public health services until the date of transfer thereof, free of cost to the State Government or the local authority.
(12) In the event of the promoter contravening any provisions of this Act, or rules made thereunder or any conditions of the licence granted under sub-section (3) the competent authority may, after giving an opportunity of being heard, cancel the licence and enforce the bank guarantee furnished by the promoter under the said sub-section(3).
(13) When a licence is cancelled under sub-section (12), the competent authority may itself carry out or cause to be carried out the development works, and after adjusting the amount received as a result of enforcement of bank guarantee, recover such charges as the competent authority may have to incur on the said development works from the promoter and the allottees in the manner prescribed as arrears of land revenue.
(14) The liability of the promoter for payment of development charges referred to in-sub section (13) shall not exceed the amount the prompter has actually recovered from the allottees less the amount actually spent on such development works, and that of the allottees shall not exceed the amount which they would have to pay to the promoter towards the expenses of the said development works under the terms of the agreement of sale or transfer entered into between them:
Provided that the competent authority may, recover from the allottees with their consent, an amount in excess or what may be admissible under the aforesaid terms of agreement of sale Consumer Complaint No.91 of 2013 12 or transfer.
(15) Notwithstanding anything contained in this Act, after development works have been carried out under sub-section (13), the competent authority may, with a view to enabling the promoter, to transfer the possession of, and the title to, the land to the allottees within a specified time, authorise the promoter by an order to receive the balance amount, if any, due from the allottees after adjustment of the amount which may have been recovered by the competent authority towards the cost of the development works and also transfer the possession of, and the title to, the land to the allottees within aforesaid time and if the promoter fails to do so, the competent authority shall on behalf of the promoter transfer the possession of, and the title to, the land to the allottees on receipt of the amount which was due from them.
(16) After meeting the expenses on development works under sub-section (13), the balance amount shall be payable to the promoter.
6. Contents of Agreement of Sale:-
(1) Notwithstanding anything contained in any other law for the time being in force, a promoter who intends to construct or constructs a building of apartments, all or some of which are to be taken or are taken on ownership basis, or who intends to offer for sale plots in a colony, shall, before he accepts any sum of money as advance payment or deposit, which shall not be more than twenty five per cent of the sale price, enter into a written agreement for sale with each of such persons who are to take or have taken such apartments, or plots, as the case may be, and the agreement shall be in the prescribed form together with prescribed documents and shall be registered under the Registration Act, 1908 (Central Act no.
16 of 1908) ;
Provided that, if only a refundable application fee is collected from the applicant before draw of lots for allotment, such agreement will be required only after such draw of lots. (2) The promoter shall not cancel unilaterally the agreement of sale entered into under sub-section (1) and if he has sufficient cause to cancel it, he shall give due notice to the other parties to the agreement and tender a refund of the full amount collected togetherwith interest at the rate as may be prescribed.
(3) The agreement to be prescribed under sub-section (1) shall contain inter alia the particulars as hereunder specified in clause (a) in respect of apartments and as specified in clause
(b) in respect of plots in a colony and to such agreement shall be attached the copies of the documents specified in clause
(c),-
Consumer Complaint No.91 of 2013 13
(a) the particulars in the case of apartment,-
(i) if the building is to be constructed, the liability of the promoter to construct the building according to the plans and specifications approved by the authority which is required so to do under any law for the time being in force;
(ii) the date by which the possession of the apartment is to be handed over to the allottee;
(iii) the area of the apartment including the area of the balconies which should be shown separately:
(iv) the price of the apartment including the proportionate price of the common areas and facilities which should be shown separately, to be paid by the allottee of the apartment and the intervals at which the instalments thereof may be paid;
(v) the precise nature of the association to be constituted of the persons who have taken or are to take the apartments;
(vi) the nature, extent and description of the common areas and facilities and the limited common areas and facilities, if any;
(vii) the percentage of undivided interest in the common areas and facilities and in the limited common areas and facilities, if any, appertaining to the apartment agreed to be sold, such percentage shall be the ratio of the built-up area of the apartment to the total built-up area of all the apartments;
(viii) the statement of the use for which the apartment is
intended and restrictions on its use, if any;
(b) particulars in the case of plots in a colony,-
(i) the date by which the possession of the plot is to be
handed over to allottee;
(ii) the area and price of the plot; and
(iii) the statement of the use for which the plot is intended
and restriction on its use, if any;
(c) the copies of documents to be attached with the
agreement,-
(i) the certificate by an attorney-at-law or advocate referred to in clause (a) of sub-section(2) of section 3;
(ii) certified copy from any relevant revenue record showing the nature of the title of the promoter to the plot or the land on which the building of apartments is constructed or is to be constructed ; and
(iii) the plans and specifications of the apartment as approved by the authority which is required so to do under any law for the time being in force.
9. Accounts of sums taken by promoter:- The promoter shall maintain a separate account in any scheduled bank of sums taken by him from persons intending to take or who have taken apartments or plots, as advance, towards sale price or for any other purpose, or, deposit, including any sum so taken towards the share capital for the formation of a co- Consumer Complaint No.91 of 2013 14 operative society or a company, or towards the outgoings(including ground rent, if any, municipal or other local taxes. charges for water or electricity, revenue assessment, interest on mortgages or other encumbrances, if any, stamp duty and registration fee for the agreement of sale and the conveyance); and the promoter shall hold the said moneys for the purposes for which they were given and shall disburse the moneys for those purposes including for the construction of apartments and, in the case of colonies, for meeting the cost of development works, and shall on demand, in writing, by the competent authority make full and true disclosure of all transactions in respect of that account and shall not utilize for any other purpose the amounts so collected for a particular purpose.
12. Refund of Amount:-If the promoter,-
(a) fails to give possession, in accordance with the terms of his agreement, of a plot or an apartment duly completed by the date specified, or any further date agreed to by the parties; or
(b) for reasons beyond his control and of his agents, is unable to give possession of the plot or the apartment by the date specified, or the further agreed date; the promoter shall be liable on demand, but without prejudice to any other remedies to which he may be liable, to refund the amounts already received by him in respect of that plot or apartments with simple interest at the rate as may be determined by the competent authority from the date the promoter received the sums till the date the amounts and interest thereon is refunded, and the amounts and the interest shall be a charge on the land on which a plot is to developed, or a building is or was to be constructed and the construction, if any, thereon shall be subject to any prior encumbrances.
12. Thereafter, Punjab Apartment and Property Regulation Rules, 1995 were framed under Section 45 of the PAPRA and according to Rules 7, 8 & 17 thereof, it has been provided as under:-
"7. Disclosure regarding registration and licence - The promoter shall disclose the number of his certificate of registration granted under sub-section (2) of section 21 and, in the case of a colony, also the validity of licence issued under sub-section (3) of section 5 and display the certificate of registration and the licence so granted at a conspicuous place in his office and make it available for inspection to the persons taking or intending to take an apartment or a plot in the colony and to a person authorized by the competent authority.
8. Supply of copies of documents. - The promoter on demand shall supply true copies, on payment of reasonable charges, of the following documents, namely :-Consumer Complaint No.91 of 2013 15
(a) Title deed of land, certificate of the attorney at-law or an advocate of not less than seven years standing, referred to in clause (a) of sub-section (2) of section 3 and copies of the advertisement issued under section 4;
(b) Copy of the consent of the land owner, if the land does not belong to the promoter as referred to in clause (a) of sub- section (2) of section 3;
(c) Design of apartment, agreement with an architect and a contractor, referred to in clause (f) of sub-section (2) of section 3;
(d) Copy of occupation certificate referred to in section 14; and
(e) Certificate of registration granted under sub-section (2) of section 21 and in case of colony, the permission granted under sub-section (2) of section 5.
17. Rate of interest on refund of advance money upon cancellation of agreement.- The promoter shall refund full amount collected from the prospective buyers under sub- section (1) of section 6 together with interest thereon at the rate of twelve per cent per annum payable from the date of receipt of amount so collected till the date of re-payment."
13. The whole purpose of pleadings is to bring the reality to an issue. The complaint is a concise statement of facts and if no reply is filed to the complaint, the averments made therein are deemed to have been admitted. In the present case, the opposite parties have not appeared and were proceeded against ex parte. As such, there is no written reply or any kind of evidence adduced on record on behalf of the opposite parties. As such, the evidence adduced by the complainant remains unrebutted.
14. The opposite parties had been collecting huge amounts from the buyers for the development of the Project. The amount received from the complainant-buyer was required to be deposited in the schedule Bank, as per Section 9 of PAPRA and we wonder where that amount had been going. It is not to play the game at the cost of others. When it insists upon the performance of the promise by the Consumer Complaint No.91 of 2013 16 consumers, it is to be bound by the reciprocal promises of performing its part of the Agreement.
15. Admittedly, the amount of Rs.17,50,000/- has been paid by the complainant to the opposite parties towards the price of the flat. Allotment letter dated 27.03.2007 was issued to the complainant by the opposite party and as per the same, the possession of the flat was not delivered to the complainant within the stipulated period i.e. on or before 26.03.2009. The present complaint was filed on 04.09.2013. However, till then the opposite party failed to deliver the possession of the fully developed flat to the complainant. The complainant cannot be made to wait for indefinite period for delivery of possession of the flat. Moreover, the opposite party is not in a position to deliver the physical possession of the flat in dispute to the complainant in near future.
16. The Consumer Protection Act came into being in the year 1986. It is one of the benevolent piece of legislation to protect the consumers from exploitation. The spirit of the benevolent legislation cannot be overlooked and its object is not to be frustrated. There is not an iota of evidence led by the opposite party to rebut the averments made in the complaint by way of authenticated documentary evidence. The complainant has made payment of substantial amount to the opposite party with the hope to get the possession of the flat in a reasonable time. The circumstances clearly show that the opposite party made false statement of facts about the goods and services i.e. allotment of land and construction in a Consumer Complaint No.91 of 2013 17 stipulated period and ultimate delivery of possession. The act and conduct of the opposite party is a clear case of misrepresentation and deception, which resulted in the injury and loss of opportunity to the complainant. Had the complainant not invested her money with the opposite party, she would have invested the same elsewhere. There is escalation in the price of construction also. The complainant has suffered loss, as discussed above. The builder is under obligation to deliver the possession of the developed flat within a reasonable period. The complainant cannot be made to wait indefinitely to get possession of the flat booked. From the facts and evidence brought on the record of the complaint, it is clearly made out that the opposite party i.e. builder knew from the very beginning that it had not complied with the provisions of the PAPRA and the Rules frames thereunder and would not be able to deliver the possession within the stipulated period, thus by misrepresenting induced the complainant to book the plot, due to which the complainant has suffered mental agony and harassment. It is the settled principle of law that compensation should be commensurate with the loss suffered and it should be just, fair and reasonable and not arbitrary. The amount paid by the complainant is a deposit held by the opposite party in trust of complainant and it should be used for the purpose of developing the flats, as mentioned in Section 9 of PAPRA. The builder is bound to compensate for the loss and injury suffered by the complainant for failure to deliver the possession, so has been held in catena of judgments by the Hon'ble Supreme Court and the Hon'ble National Commission. To get the relief, the complainant has to wage Consumer Complaint No.91 of 2013 18 a long drawn and tedious legal battle. As such, the complainant was at loss of opportunities. In such circumstances, ever increasing cost of construction and the damages for loss of opportunities caused which resulted in injury to the complainant, are also required to be taken into consideration for awarding compensation. In addition to that she is also entitled to the compensation for the harassment, mental agony and wasting of time and money in litigation for redressal of grievance suffered by her on account of the betrayal by the opposite parties in shattering her hope of getting the flat by waiting for all this period.
17. Under Section 12 of the PAPRA read with Rule 17 of the Rules framed thereunder, reproduced above, if the amount is to be refunded, it is to be refunded along with interest at the rate of 12% per annum.
18. In view of the above discussion, the complaint is allowed and the following directions are issued to the opposite parties:-
i) to refund the amount of `17,50,000/- along with interest at the rate of 12% per annum from the different dates of deposit of different amounts till the date of actual payment;
ii) to pay ₹2,00,000/-, as compensation for the harassment and mental agony suffered by her; and
iii) to pay ₹20,000/-, as cost of litigation.
19. The opposite party shall make compliance of this order within one month from the date of receipt of the certified copy of this order.
Consumer Complaint No.91 of 2013 19
20. If the opposite party has failed to comply with the order in the complaint within the stipulated period, then the amount of compensation awarded, vide this order in the complaint shall carry interest at the rate of 12% per annum from the date of this order till realization.
(JUSTICE PARAMJEET SINGH DHALIWAL) PRESIDENT (HARCHARAN SINGH GURAM) MEMBER February 21, 2017 Lb/-