IN THE SUPREME COURT OF INDIA

CIVIL APPELLATE JURISDICTION

CIVIL APPEAL NO.7416 OF 2008 (Arising out of S.L.P. (C) No.14591 of 2006)

Vimalchandra D. Desai & Anr.        ...Appellant(s)

Versus

Pune Municipal Corporation & Ors.            ...Respondent(s)

O  R  D  E  R

Leave granted.

Heard learned counsel for the parties.

The  State  Consumer  Disputes  Redressal  Commission,  Maharashtra,

allowed the complaint and awarded compensation of Rupees four lakhs together with

interest thereon at the rate of nine per cent per annum from the date of filing of the

complaint,  i.e.,  20th April,  2000,  till  realisation.   Against  the  said  order,  when  the

matter was taken in appeal, the National Consumer Disputes Redressal Commission

[for short, “National Commission”] enhanced the compensation to Rs.6,54,2000/- and

after taking note of the fact that Respondent No.1, Pune Municipal Corporation has

already paid Rs.50,000/-, directed that Aundh Sports Club, Respondent No.4 herein,

shall  pay the remaining amount of Rs.6,04,000/- within four weeks.   The National

Commission further directed

...2/-

- 2 -  

that in case Respondent No.4 fails to pay the amount, Respondent Nos.5-8 herein shall

be jointly and severely liable to pay the amount with the rider that in the event of

failure of respondents to pay the amount within four weeks, the appellants shall be

entitled to interest at the rate of nine per cent per annum.

Feeling  dis-satisfied  with  the  order  of  the  National  Commission,  the

complainants have preferred this appeal by special leave.

Learned  counsel  appearing  on  behalf  of  the  appellants  submitted  that

while determining the compensation at Rs.6,54,000/-,  the National Commission has

made  a  mistake  in  calculating  the  compensation  and,  as  a  matter  of  fact,  the

compensation should have been assessed at Rs.7,92,000/-.  Learned counsel appearing

on behalf of the private respondents stated that he is not in a position to dispute this

fact.

In view of the above, we hold that the appellants are entitled to a sum of

Rs.7,92,000/- by way of compensation and after deducting Rs.50,000/- already paid by

Respondent No.1, a sum of Rs.7,42,000/- is payable to them.   We are further of the

view that the National Commission was not justified in not awarding interest to the

appellants with effect from the date of filing of the complaint.

Accordingly,  the appeal is allowed in-part.  It is held that the enhanced

compensation  payable  in  terms  of  the  order  of  the  National  Commission  is

Rs.7,92,000/-  and not Rs.6,54,000/-.   After deducting Rs.50,000/-  paid by the Pune

Municipal Corporation, Respondent Nos.4 to 8 are directed to pay to the  appellants a

sum  of Rs.7,42,000/-  together with interest thereon at the rate of nine per cent per annum from the date  

...3/-

- 3 -  

of filing of the complaint, i.e., 20th April, 2000, till date of payment within a period of

four months by an account payee demand draft upon a local branch of the scheduled

Bank.  While doing so, they shall be entitled to adjust the amount already paid to the

appellants.

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

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

......................J.       [RAJENDRA MAL LODHA]

New Delhi, December 18, 2008.