Case Note & Summary
The Supreme Court heard an appeal by the Delhi Development Authority against Bhavana Cooperative Group Housing Society Ltd. The matter came before a Division Bench comprising K. Ramaswamy and B.L. Hansaria. Leave was granted. Counsel for the society appeared. The Court referred to its earlier judgment in D.D.A. v. Grihsthapana Cooperative Group Housing Society Ltd. and accordingly allowed the appeal. The Court upheld forfeiture to the extent of Rs. 5 lakhs and directed the appellant to refund the remaining amount within four weeks from the date of judgment. In default of refund within that period, the respondent would be entitled to interest at 18% per annum from that date till payment. No costs were ordered. The judgment does not provide detailed facts about the original dispute, the nature of the forfeiture, or the lower court proceedings. Only the final order is available. The legal principle is that the appeal is allowed following precedent, and forfeiture is partially upheld. The court exercised its discretion to grant interest on delayed refund. No acts or sections were cited. No paragraph numbers appear in the text.
Headnote
A) Cooperative Society Law - Forfeiture of Deposits - Appeal Allowed and Forfeiture Upheld - Not mentioned - The Supreme Court considered an appeal by the Delhi Development Authority against a cooperative group housing society. Following the precedent in D.D.A. v. Grihsthapana Cooperative Group Housing Society Ltd. [JT 1995 (2) SC 530], the Court allowed the appeal and upheld forfeiture to the extent of Rs. 5 lakhs. The Court directed refund of the remaining amount within four weeks, with interest at 18% per annum if refund was delayed. Held that the appeal is allowed and forfeiture of Rs. 5 lakhs is upheld (Para 1).
Issue of Consideration
Whether the appeal should be allowed and forfeiture to the extent of Rs. 5 lakhs upheld in view of D.D.A. v. Grihsthapana Cooperative Group Housing Society Ltd.
Final Decision
Appeal allowed; forfeiture to the extent of rupees five lakhs upheld; remaining amount to be refunded by the appellant within four weeks from the date of judgment; failing which the respondent entitled to interest at 18% per annum from that date till payment; no order as to costs.
Law Points
- Appeal allowed
- forfeiture of Rs. 5 lakhs upheld
- remaining amount refundable within four weeks
- interest @ 18% per annum on delayed refund
- no order as to costs
