http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 1 of 2  

CASE NO.: Appeal (civil)  2380 of 2003

PETITIONER: Haryana Urban Development Authority                      

RESPONDENT: Sita Ram                                                                 

DATE OF JUDGMENT: 10/08/2004

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 bearing No. R- 53, Sector M.T. Ratia, District Hisar vide letter no. 4775 dated 21st  March, 1982.    The Respondent paid all dues but was not offered  possession.   

On these facts, the District Forum directed payment of interest  @ 15% on deposited amount after the expiry of two years from the  date of deposit.   It further held that the amount of penalty charged, if  any, would be adjusted in the remaining installments.   

The State Forum found no case for interference and dismissed  the Appeal.  The Respondent did not go in Revision before the National  Commission.  The Appellants went in Revision before the National  Commission.  The National Commission has increased the rate of  interest to 18% p.a.   

       For reasons set out in the Judgment in the case of Ghaziabad  Development Authority vs. Balbir Singh (supra), the order of the  National Commission cannot be sustained and is hereby set aside.  As

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 2 of 2  

stated above, the relevant papers regarding the claim made, the  affidavits filed, the evidence submitted before the District Forum are  not produced before this Court.  In this case, the allotment was made  in 1982 and the possession offered and taken in 2003.   Interest  amount has also been paid.  On these facts, we maintain the order of  the District Forum.   However, a complaint is made that the Appellants are not  executing the sale deed and are not giving permission to construct.   We, therefore, direct the Appellants to execute the sale deed and to  give permission to construct without claiming any amounts  whatsoever, except registration charges, from the Respondent.  The  same is to be done within one month from today. We clarify that this Order shall not be taken as a precedent in  any other matter as the order is being passed taking into account  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.         This Appeal is disposed of accordingly.  There will be no order as  to costs.