Case Note & Summary
The disputes arose from housing schemes launched by the Ghaziabad Development Authority, involving multiple respondents who sought possession of plots and compensation for delays. In the first case, the respondent applied for a plot in 1989 and filed a complaint in 1993 due to delays in delivery. The District Forum ordered possession and interest at 18%, which was upheld by the State Commission. However, the National Commission dismissed the revision without addressing key arguments. The Supreme Court, considering the long wait for the plot, allowed the appeal, set aside the National Commission's order, and directed the Authority to allot a new plot at a reduced rate of Rs.2300/- per sq. mt. The second case involved a respondent who failed to pay the required amount for a plot, leading to a complaint in 1998. The District Forum ordered possession and interest at 18%, but the Supreme Court found that the respondent was not entitled to interest or damages as possession had been delivered despite non-payment. In the third case, the respondent sought a refund after cancellation of a plot, and the District Forum ordered a refund with interest at 18%. The Supreme Court reduced the interest to 10%, affirming the District Forum's order in other respects. The court emphasized the need for fair treatment in allotments and the importance of addressing all arguments in decisions.
Headnote
A) Consumer Protection - Interest on Deposits - Rate of Interest - Consumer Protection Act, 1986, Section 14 - The court held that the appellant was not liable to pay interest at 18% per annum as the delay was due to circumstances beyond its control, and modified the order to allow interest at 9% per annum instead (Paras 1-5). B) Consumer Protection - Allotment of Plots - Fairness in Allotment - Consumer Protection Act, 1986, Section 14 - The court found the offer of allotment at a lower rate to be fair and reasonable, directing the appellant to allot the plot at Rs.2300/- per sq. mt. (Paras 3-5). C) Consumer Protection - Non-speaking Orders - Consumer Protection Act, 1986, Section 14 - The court criticized the non-speaking order of the National Commission for failing to address the appellant's contentions, leading to a modification of the order (Paras 2-4).
Issue of Consideration
Whether the appellant was liable to pay interest at 18% per annum and whether the plot delivery was justified under the circumstances.
Final Decision
The Supreme Court allowed the appeal in part, set aside the order of the National Commission, and modified the order of the State Commission by directing the allotment of a new plot at Rs.2300/- per sq. mt. and delivering it within three months. The court also adjusted the interest rate to 9% per annum on the amounts already paid.
Law Points
- Interest on deposits
- Allotment of plots
- Deficiency in service
- Consumer protection
- Non-speaking orders
