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Secondly, in such a case, if there is any express promise that the premises would be delivered within the stipulated time, and, if not done so, escalation cost is required to be borne by the builder.

It is to be borne in mind that in most of the cases consumers invest their hard earned money, may be either retiremental benefits or their life savings to get shelter and in some cases, after retirement.

In the present case, the Complainant is a retired Brigadier. He contends that his hard earned money was invested for purchase of a flat, and, that he was compelled to pay escalation cost, despite delay in construction by the builder, and the promise made in the colourful brochure published by the builder for attracting the buyer that no escalation cost would be recovered.

f) Compensation for harassment Rs. 50,000.00 p.

______________   Total Rs.12,78,395.87 p.

==============   Order of the State Commission:

The State Commission, after considering the facts held that:

(i). as per the agreement between the parties the complainant was bound to pay Escalation Charges, and hence rejected the prayer for refund of the Escalation amount;

(ii). Secondly, with regard to payment of interest for keeping the money which was recovered from the complainant for execution of the Conveyance Deed, the State Commission directed the DLF to pay interest at the rate of 10% p.a. on the amount deposited by the complainant from the date of deposit till the date of execution of the Conveyance Deed;

Next, learned Senior Counsel Mr.Hakasr contended that as per the terms of the agreement the Complainant is bound to pay escalation cost, and, for delay in delivering possession, Complainant will not be entitled to claim any compensation. He relied upon the following terms of the agreement entered into between the parties on 19th October, 1993, which according to him deals with escalation cost and for delay in delivery of possession of the apartment.

Relevant terms of Clause 4 and 16 are as under:

.III. Escalation amount:

(a). Now, escalation, Cl.4 provides that in case of increase of costs, during the construction period, which were prevailing on 1.1.1993, then the Company would be entitled to levy escalation charges from the allottee.

But, this condition is also on the foundation that construction work was to start in the year 1993 and not in the year 1996, i.e. after obtaining various sanctions to construct the buildings. Therefore, this clause cannot be the basis for holding that purchasers are required to pay escalation in cost of construction. Delay in starting construction work might have resulted in increase in the price of the materials used in the construction work or labour charges. For this delay, the Complainant is not responsible, and, therefore, he is not required to pay the escalation charges due to such delay.