Appeal no. FA-9/267

(Appeal against the order dated 22.07.2008 passed by District Forum-II, in complaint case no.1246/2007)

Haryana State Industrial and

Infrastructure Development Corporation Ltd.,

Through Company Secretary,

C-13-14, Institutional Area,

Sector-6, Panchkula , Haryana.


…..Appellant/complainant.

Through

Sh. Nikhil Jain, Advocate


VS



M/s Anita Food & Beverates(P) Ltd.,

P-22, LGF, NDSE-II,

New Delhi-110049.

Through its Director

……Respondent/O.P.

Through

Sh. Ajay Kumar Porwal, Advocate


CORAM



Justice Barkat Ali Zaidi, President.

M.L. Sahni, Member



1. Whether reporters of local newspaper be allowed to see the

judgment?



2. To be referred to the reporter or not?

M.L. SAHNI, MEMBER

1. The complainant M/s Anita Food & Beverages(P) Ltd before District Forum (hereinafter referred to as respondent) deposited a sum of Rs. 3.00 lakhs by way of demand draft no. 461481 dated 25.8.2006 with appellant Harayana State Industrial and Infrastructure Development Corporation Ltd (HSIIDC) for the purpose of industrial plot. The representative of the respondent was also called for interview on 09.04.2007 by the Allotment Committee. However, the appellant rejected the application of the respondent for allotment , therefore, the respondent requested for refund of the money deposited with the appellant. When the request was not acceded to ,the respondent filed a complaint before District Consumer Forum requesting for refund of Rs. 3.00 lakhs with interest @ 24% per annum and also compensation of Rs. 50,000/- together with cost of litigation of Rs. 10,000/- .

2. Since the appellant did not appear before District Consumer Forum, an ex parte order dated 8.1.2008 was passed against them. 3. On the basis of evidence filed by way of affidavit by the respondent, the Ld. District Forum held that the allegation made by the respondent in their complaint stand proved and since the appellant failed to refund the deposited amount of Rs. 3.00 lakhs despite, request made by the respondent, the complaint was allowed and the impugned order was passed. Interest on the refundable amount of Rs. 3.00 lakhs was allowed @ 12% per annum w.e.f. January, 2007 till the realization. Rs. 20,000/- was also awarded as compensation including cost of litigation.

3. We have heard the counsel for the parties at length. We have also examined the record and perused the impugned order.

4. During the arguments , the Ld. Counsel for appellant produced the copy of the letter dated 9.6.2008 whereby the appellant had refunded a sum of Rs. 3.00 lakhs vide cheque no. 144830 dated 4.6.2008 drawn at IDBI Bank Punchkula being application money deposited by the respondent. The said cheque is received by the respondent vide acknowledgment letter dated 18.6.2008. Copy of the same has also been placed on record by the Ld. Counsel for appellant. The impugned order was passed on 22.7.2008. When the affidavit in evidence was filed by the respondent before the Ld. District Forum, the refund had not been received by the complainant/ Respondent . Relying upon the evidence, it was provided in the impugned order that Rs. 3.00 lakhs deposited by the respondent shall also be refunded by the appellant. Since the money so deposited has already been received by the respondent , therefore, impugned order of the Ld. District Forum needs modification to this extent. However, from the conduct of the appellant, it is abundantly clear that the refund has been made only on 9.6.2008 i.e. after complaint before District Forum had been filed. The finding of the District Forum regarding deficiency in service on the part of the appellant is writ large in this case.

5. We are , therefore, of the considered view that Ld. District Forum has not faulted in any manner in holding that the appellant are liable to pay interest and compensation with cost of litigation to the respondent. So far as interest is concerned, it is settled principle of law that the consumer forum can grant interest according to circumstances of each case and that it can be awarded in lieu of compensation or damages in appropriate case. No doubt It has been held in the case of Sovintorg(India) Ltd. Vs State Bank of India, New Delhi that interest @ 12% awarded by the Consumer Forum can be raised to 15% in appropriate case. However, in the facts and circumstances of the present case, we do not feel inclined to enhance the rate of interest as submitted on behalf of the Complainant/Respondent.

6. The Ld. District Forum has awarded the interest w.e.f. January, 2007 till realization. The deposited amount is admittedly received by the respondent on 18.6.2008 therefore the interest payable in this case shall be calculated only till the date the deposit of Rs. 3.00 lakhs was admittedly received back by the respondent.

7. As a result of above discussion, the impugned order stands modified to the extent that “OP shall pay interest @ 12% per annum from January , 2007 till June, 2008 on sum of Rs. 3 lakhs and also pay Rs. 20,000/- as compensation including cost of litigation”.

8. The appeal is disposed off accordingly.

9. FDR / Bank guarantee, if any, furnished by the appellant be returned to the appellant forthwith after completion of due formalities.

10. A copy of this order as per statutory requirements be forwarded to the parties free of charge and also to the concerned District Forum and , thereafter , the file be consigned to Record Room.