For the Appellant Ms Neha Gupta and Mr Rishab Pant, Advocates For the Respondent Mr Avnish Dave and Mr Aadhar Saha, Advocates ORDER PER SUBHASH CHANDRA 1. Heard the counsel for the parties. 2. The present appeal under Section 19 of the Consumer Protection Act, 1986 (in short, ‘the Act’) has been filed against the order dated 20.09.2019 in Complaint Case no.116 of 2018, whereby the State Commission had allowed the complaint filed by the respondent and directed the appellant to refund the amount deposited by the complainants i.e., Rs.23,97,973/- along with 15% interest from the date of deposit of the amount and to pay a sum of Rs.2.00 lakh for mental agony along with litigation cost of Rs.20,000/- within two months failing which the amount of compensation and cost of proceedings would carry 9% interest. This order is impugned before us by the appellant with the prayer to: - Allow the appeal and set aside/ quash the judgment and order dated 20.09.2019 passed in case no.116 of 2018 by the State Commission, Rajasthan in Smt Mamta Sharma and Another vs Sahara Prime City Limited and Ors.,; and
- Pass such other order/s as this Hon’ble Commission may deem fit and proper in the facts and circumstances of the instant case.
3. The relevant facts of the case are that the respondents had booked a three bedroom flat admeasuring 117.91 sq meters with appellants for a consideration of Rs.23,48,000/- in Sahara City Homes, Jaipur and were allotted no.C-2/801, Gorgeous, Type C – 3 bedroom unit. Respondents allege that the appellants were unable to handover the possession of the said flat within the stipulated time of 38 months i.e., by 23.11.2013. The respondents filed Consumer Complaint no.116 of 2018 before the State Commission alleging, deficiency of service on the part of the appellants and sought refund of the amount deposited. On contest, the State Commission, vide impugned order dated 20.09.2019, allowed the complaint directing refund of Rs.23,97,973/- along with 15% interest from the date of deposit of amount along with Rs.2 lakh as compensation for mental agony and Rs.20,000/- as cost of the proceedings. 5. In view of the settled position with regard to compensation for the deficiency in service for delay in offer or handing over of possession, the Hon’ble Supreme Court has held in its judgment in Experion Developers Pvt. Ltd. Vs. Sushma Ashok Shiroor, Civil Appeal No. 6044 of 2019 decided on 07.04.2022 that compensation awarded should be compensatory and restitutionary. It has also held that in cases of refund of the principal amount deposited, the rate of interest @ 9% per annum from the respective dates of deposit till the date of the offer of possession is fair and just. The Apex Court has also held in DLF Homes Panchkula Pvt. Ltd., vs D S Dhanda (2020) 16 SCC 318, decided on 10.05.2019 that the award of compensation under multiple heads for a singular act of deficiency is not justified. In the instant case, the impugned order has ordered as under: - Let the opposite parties shall pay Rs.23,97,973/- whenever it was deposited by the complainant from the same with 15% interest per annum from the date of filing complaint, i.e., 20.07.2018 and shall pay interest at the rate of 9% per annum from the date of filing complaint, i.e., 20.07.2018;
- Let the opposite parties shall pay Rs.2,00,000/- as compensation for mental pain and Rs.20,000/- as costs of litigation within two months from the date of order with 9% per annum from the date of filing complaint, i.e. 20.07.2018.
6. In view of the foregoing discussion and the admitted position with regard to delay in handing over possession which amounts to deficiency in service, the appeal is to be dismissed. Ordered accordingly. The order of the State Commission is modified as below: - The appellant shall refund Rs.23,97,973/- to the respondent with interest @ 9% per annum from the respective dates of deposit within eight weeks of this order failing which it shall be paid with interest @ 12% per annum till realisation;
- litigation cost of Rs.20,000/- imposed on the appellant is left undisturbed; and
- The award of compensation of Rs.2.00 lakhs for mental and physical agony is set aside.
7. Pending IAs, if any, also stand disposed of. |
