IN THE SUPREME COURT OF INDIA

CIVIL APPELLATE JURISDICTION

CIVIL APPEAL NO.826 OF 2009 (Arising out of S.L.P. (C) No.24578 of 2005)

Binay Krishna      ...Appellant(s)

Versus

Bihar State Housing Board      ...Respondent(s)

O  R  D  E  R

Leave granted.

In  response  to  an  advertisement  issued  by  the  respondent-Bihar  State

Housing Board (for short, “the Board”), in 1978, the appellant deposited a sum of

Rs.5,000/-  for  allotment  of  a  plot.   After  thirteen  years,  he  was  informed  about

allotment of plot measuring 1825 sq. ft. and was asked to deposit Rs.35,530/-.  The

appellant deposited the required amount on 28.10.1991, but possession of the plot was

not given to him.  The complaint filed by the appellant was disposed of by the State

Consumer Disputes Redressal Commission, Bihar (for short, “the State Commission”)

vide its order dated 6th July, 1995 whereby the Board was directed to pay interest on

the amount of Rs.35,530/- @ 18% per annum from the date of deposit till the delivery

of possession of the plot.  The Board was also directed to pay Rs.30,000/- by way of

compensation and Rs.1,000/- towards litigation cost.  The Board challenged that order

by filing  an appeal  before the National  Consumer Disputes Redressal  Commission

(for short,  “the National Commission”)  which  was  registered as

...2/-

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First  Appeal  No.  494/1995.   By  an  order  dated  8th February,  1996,  the  National

Commission declined to stay the award of interest, but directed that the payment of

Rs.30,000/-  as  compensation will  not be enforced till  disposal  of the appeal,  if  the

Board pays a sum of Rs.15,000/- within one month along with interest.

As  the  Board  failed  to  comply  with  the  aforesaid  interim  order,  the

National Commission by its order dated 29th November, 2001, dismissed the appeal.

That order was set aside by this Court in C.A. No.2304 of  2004 and the National

Commission was directed to dispose of the appeal on merits in accordance with law.

After  remand,  the  National  Commission  passed  the  impugned  order

wherein it came to be recorded that the appellant made a statement that he was not

interested in the allotment of plot.   The National  Commission reduced the rate of

interest from 18% to 5% albeit without assigning any reason.  Hence, this appeal by

special leave.

On 2.1.2006, this  Court, after taking note of the statement made by the

appellant that he is very much interested in the plot because at the age of 76 years he

has  no  shelter,  directed  him  to  approach  the  National  Commission  by  filing

appropriate  application.   Thereafter,  the  appellant  filed  an  application  for

modification of order dated 4th July, 2005. The same was dismissed by the National

Commission vide its order dated 11th August, 2006.

Heard the appellant, who has appeared in-person.

A perusal  of the record shows that the appellant has been continuously

making complaint  regarding non-delivery of  possession  of  the plot.   This  was  the

categorical position taken by him before the State Commission.  In the special leave

petition, he made a specific grievance that he did not make any statement before the

National Commission that he was

...3/-

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not  interested in  taking  possession of  the  plot.   The  Board has  not  filed  reply  to

controvert this assertion.  Therefore, it is reasonable to take the view that the National

Commission, under some mistaken impression made a recording in its order dated 4th

July,  2005  about  the  statement  allegedly  made  by  the  appellant  that  he  was  not

interested in the allotment of plot. Therefore, dismissal of the application filed by the

appellant for modification of that order was not at all justified.  

We are also of the view that  there was absolutely no justification for the

National Commission to reduce the rate of interest from 18% to 5% per annum and

not to indicate the time period for which the interest was payable by the Board.

Accordingly, the appeal is allowed, impugned order passed by the National

Commission on 4th July, 2005 in First Appeal No. 494 of 1995 and order dated 11th

August, 2006, dismissing the application for modification are set aside and the appeal

filed  by  the  respondent-Board  before  the  National  Commission  is  dismissed.

Consequently, the order passed by the State Commission is restored.

......................J.       [B.N. AGRAWAL]

......................J.       [G.S. SINGHVI]

New Delhi, February 09, 2009.