Urban Development Authority Vs. Smt. Nalini Aggarwal  INSC 445 (21 April
RAMASWMAY, D.P. WADHWA
O R D
E R Leave granted. We have heard learned counsel for the appellant and also
was issued calling for the applications for allotment of houses and the
respondents had applied on April 20, 1993.
the last date for making applications was May 31,1993. After necessary steps were taken
and scrutiny was made, lots were drawn of June 7, 1994. Since the respondents remained
unsuccessful in the lots, the earnest money deposited by them refunded on July 20,1994 within one month. The question,
therefore, is: whether the unsuccessful applicants would be entitled to payment
of interest for the period from the date of deposit till the date of refund?
One of the condition imposed in the notification inviting applications for
allotment was "No interest shall be on the money of the applicant for the
period for which the same is lying with the Authority." Having accepted
the above conditions, while applied for allotment, the respondents are not
entitled to the payment of interest for the period during which the deposit was
lying with the Authority. It is true that there was an interlude of around one
year between the date of calling applications and the date of draw of lots. It is
obvious that the draw of lots was delayed due to administrative exigencies and
not on account of any mala fide action of any individual; nor is there any
absolute indifference on the part of the appellant in not drawing the lots.
However, it is made clear that the appellant being a statutory authority is
expected of perform its duties as expeditiously as possible and have the
actions taken quickly.
these circumstances, the appeals are allowed. the order of the National
Consumer Disputes Redressal Commission, dated June 14, 1996 made in Revision Petition No. 992/95 etc. and that of the
State Forum are clearly illegal. They are accordingly set aside. No costs.