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 granted. The State Consumer Disputes Redressal Commission ordered the Board to pay interest and compensation, which the Board appealed against. The National Commission initially declined to stay the order but later reduced the interest rate and dismissed the appellant's application for modification, leading to this appeal. 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 actions unjustified, particularly regarding the interest rate reduction and the dismissal of the modification application. Consequently, the Supreme Court allowed the appeal, set aside the National Commission's orders, and restored the State Commission's decision.
Headnote
A) Consumer Protection - Allotment of Housing Plot - Non-Delivery of Possession - Consumer Protection Act, 1986, Sections Not mentioned - The appellant deposited a sum for allotment but faced delays in possession. The National Commission's reduction of interest was unjustified, and the dismissal of the modification application was not warranted. Held that the State Commission's order should be restored (Paras 1-6).
Issue of Consideration
Whether the National Commission erred in recording the appellant's statement regarding interest in the plot and in reducing the interest rate from 18% to 5%.
Final Decision
The Supreme Court allowed the appeal, set aside the National Commission's orders, and restored the State Commission's decision regarding interest and compensation.
Law Points
- Consumer protection
- allotment of housing plots
- interest on deposits
- compensation for delay
- modification of orders
