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CASE NO.: Appeal (civil)  393 of 2003

PETITIONER: Ghaziabad Development Authority

RESPONDENT: Shashi Kant Bhalla

DATE OF JUDGMENT: 18/08/2004

BENCH: S. N. VARIAVA & ARIJIT PASAYAT

JUDGMENT: J U D G M E N T

S. N. VARIAVA, J.

Before this Court a large number of Appeals have been filed by  the Haryana Urban Development Authority and/or the Ghaziabad  Development Authority challenging Orders of the National Consumer  Disputes Redressal Commission, granting to Complainants, interest at  the rate of 18% per annum irrespective of the fact of each case.  This  Court has, in the case of Ghaziabad Development Authority vs. Balbir  Singh reported in (2004) 5 SCC 65, deprecated this practice.  This  Court has held that interest at the rate of 18% cannot be granted in all  cases irrespective of the facts of the case.  This Court has held that  the Consumer Forums could grant damages/compensation for mental  agony/harassment where it finds misfeasance in public office.  This  Court has held that such compensation is a recompense for the loss or  injury and it necessarily has to be based on a finding of loss or injury  and must co-relate with the amount of loss or injury.  This Court has  held that the Forum or the Commission thus had to determine that  there was deficiency in service and/or misfeasance in public office and  that it has resulted in loss or injury.  This Court has also laid down  certain other guidelines which the Forum or the Commission has to  follow in future cases.

       This Court is now taking up the cases before it for disposal as  per principles set out in earlier judgment.  On taking the cases we find  that the copies of the Claim/Petitions made by the  Respondent/Complainant and the evidence, if any, led before the  District Forum are not in the paper book. This Court has before it the  Order of the District Forum.  The facts are thus taken from that Order.   

In this case the Respondent was allotted a plot of land in July  1991.    The Respondent paid all dues.  Yet possession was not  delivered.  The Respondent thus filed a complaint.

The District Forum directed payment of interest at the rate of  18% per annum from the date of deposit to the date of payment.   The  District Court also awarded payments of  Rs.5,000/- for mental agony and Rs.1,000/- as costs.     The State Forum confirmed the Award, in the Appeal filed by the  Appellants.   The Respondent did not go in Revision before the National  Commission. The Appellants filed a Revision before the National  Commission.  For the first time they now claimed that the  Karpuripuram Scheme was cancelled.  The National Commission has  not dealt with the aspect of cancellation of Scheme but awarded  interest at the rate of 18% per annum.

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       As stated in the Judgment, in the case of Ghaziabad  Development Authority vs. Balbir Singh (supra), where the Scheme is  cancelled interest must be paid at the rate of 18%.  The Respondent is  thus entitled to get back his money with interest at the rate of 18%  p.a.  It is claimed by the Appellants that they have paid interest at the  rate of 18% p.a. to the Respondent.  The Respondent complains that  interest at the rate of 18% has not been paid from the date each  amount was deposited with the Appellants.  He handovers to this Court  and to the Advocate of the Appellants calculation showing what  amount has remained payable.   The Appellants are directed to recalculate and pay to the  Respondent interest at the rate of 18% p.a. on the deposits made by  the Respondent from the date of each deposit till payment.  It is  clarified that amounts, if any, paid would first go towards  payment/repayment of interest and the balance, if any, towards  principle.     The Appellants must, along with their payment, handover  to the Respondent the calculation sheet showing how they have  calculated the interest amount.

We clarify that this Order shall not be taken as a precedent in  any other matter having been passed on account of the special  features of the case.   The Forum/Commission will follow the principles  laid down by this Court in the case of Ghaziabad Development  Authority vs. Balbir Singh (supra) in future cases.

       The Appeal is disposed off accordingly.