Case Note & Summary
The dispute arose from an advertisement by the Bihar State Housing Board in 1978, where the appellant deposited Rs.5,000 for a plot allotment. After a long delay, he was informed about the allotment and paid Rs.35,530 in 1991, but possession was not delivered. The State Consumer Disputes Redressal Commission ordered the Board to pay interest at 18% and compensation, which the Board appealed. The National Commission initially declined to stay the order but later reduced the interest rate to 5% without justification. The Supreme Court noted that the appellant had consistently expressed interest in the plot and had not made any statement to the contrary. The Court found the National Commission's reduction of interest unjustified and restored the State Commission's order, allowing the appeal and dismissing the Board's appeal. The Court directed that the original compensation and interest rates be reinstated, ensuring the appellant's rights were protected.
Headnote
A) Consumer Protection - Allotment of Housing Plot - Interest Rate Reduction - Consumer Protection Act, 1986 - The National Commission unjustifiably reduced the interest rate from 18% to 5% without reasoning, impacting the appellant's rights. The Supreme Court restored the original order of the State Commission, emphasizing the need for just compensation and interest as per the original directive. Held that the National Commission's actions were not justified (Paras 2-3).
Issue of Consideration
Whether the National Commission erred in reducing the interest rate and dismissing the appellant's application for modification.
Final Decision
The Supreme Court allowed the appeal, set aside the National Commission's orders, and restored the State Commission's order regarding interest and compensation.
Law Points
- Consumer protection
- allotment of housing plots
- interest on deposits
- compensation for delay
- modification of orders
