Haryana Urban Development
Authority Vs. Dheer Singh Bhatti & Ors [2004] Insc 576 (24 September 2004)
S.N. Variava & A.K. Mathur
[ Arising out of Slp(C) No. 12586 Of 2004 ] S. N. Variava, J.
Leave granted.
Before this Court a large number of Appeals have been filed by the Haryana
Urban Development Authority and/or the Ghaziabad Development Authority
challenging Orders of the National Consumer Disputes Redressal Commission,
granting to Complainants, interest at the rate of 18% per annum irrespective of
the fact of each case. This Court has, in the case of Ghaziabad Development
Authority vs. Balbir Singh reported in (2004) 5 SCC 65, deprecated this
practice. This Court has held that interest at the rate of 18% cannot be
granted in all cases irrespective of the facts of the case. This Court has held
that the Consumer Forums could grant damages/compensation for mental
agony/harassment where it finds misfeasance in public office. This Court has
held that such compensation is a recompense for the loss or injury and it
necessarily has to be based on a finding of loss or injury and must co-relate
with the amount of loss or injury. This Court has held that the Forum or the
Commission thus had to determine that there was deficiency in service and/or
misfeasance in public office and that it has resulted in loss or injury. This
Court has also laid down certain other guidelines which the Forum or the
Commission has to follow in future cases.
This Court is now taking up the cases before it for disposal as per
principles set out in earlier judgment. On taking the cases we find that the
copies of the Claim/Petitions made by the Respondent/Complainant and the
evidence, if any, led before the District Forum are not in the paper book. This
Court has before it the Order of the District Forum. The facts are thus taken
from that Order.
In this case, the Respondent was allotted a plot bearing No.
1212, Sector-9, Gurgaon on 9.7.1993. The Respondent paid substantial amounts
but the possession was not delivered. The Respondent thus filed a complaint. On
these facts, the District Forum awarded interest as per HUDA policy and
directed that the same would be payable after two years from the date of
deposits till the date of possession. It further directed that the possession
of the allotted plot to be delivered within one month after receipt of the copy
of Order dated 20.9.2001 of the District Forum.
The State Forum while disposing of the Appeal directed to pay interest @ 18%
p.a. on the entire deposited amount after two years from the date of allotment
till delivery of possession. The National Commission relying upon the case of Haryana
Urban Development Authority v. Darsh Kumar dismissed the Revision. As has been
stated in so many matters, the Order of the National Commission cannot be sustained.
It cannot dispose of the matters by confirming grant of interest in all matters
irrespective of the facts of that case. If facts of a case so justify the
National Commission may award compensation/damages on principles set out in Balbir
Singh's case (supra). The Order of the National Commission is accordingly set
aside.
In this case possession was offered on 11th June 1997 and taken by the Respondent in 2002. The Respondent has paid a sum of Rs.2,93,429/-. The
Appellants have pursuant to interim Orders of this Court paid to Respondent a
sum of Rs.2,17,614/-. This, according to Appellants, is interest at the rate of
12% per annum. The Appellants have, however, deducted TDS. The Appellants were
not entitled to deduct TDS. The Appellants shall thus pay over to the
Respondent the amount of TDS deducted with interest thereon at the rate of 12%
from date of deduction till payment. Save as above, the Appellants need not pay
anything more to the Appellants as, in our view, Respondent has received sufficient
recompense.
We clarify that this Order shall not be taken as a precedent in any other
matter as the order is being passed taking into account special features of the
case. The Forum/Commission will follow the principles laid down by this Court
in the case of Ghaziabad Development Authority vs. Balbir Singh (supra) in
future cases.
With these observations, the Appeal stands disposed of with no order as to
costs.
Back