Complainant/petitioner applied for allotment of a dairy on the prescribed form under ‘Bhagwan Shri Krishna Dairy Colony Scheme’ vide his application dated 26.09.1997 along with pay order of Rs.5,000/-. 

          The plot of 100 squ. mtrs.@ Rs.2000/- per sq. mt. was allotted to the petitioner on 04.06.1999.  Petitioner deposited another sum of Rs.44,000/- towards the first installment vide receipt dated

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20.07.1999.  Later on respondent abandoned the scheme and the money deposited by the petitioner was refunded but without any interest.  Delhi Government referred the matter regarding interest to be paid to the applicants including the petitioner on their deposited amount to the cabinet and after the approval of the cabinet, the interest on the principal amount was paid to the applicants at the rate of 7% p.a.   A sum of Rs.13,090/- towards the interest on the sum of Rs.44,000/- deposited towards first installment of the plot and a sum of Rs.2100/- towards interest against the application money of Rs.5,000/- were received by the father of the petitioner on 11.08.2005.  Interest on Rs.5,000/- was calculated for the period of 72 months from 01.12.1997 to 30.11.2003 and interest on Rs.44,000/- was calculated from 01.09.1999 to 30.11.2003.  A cheque of Rs.44,000/- was prepared on 06.10.2003 and for Rs.5000/- on 08.12.2003.  An advertisement was given in the newspaper dated 17.12.2003 asking the applicants to take the money along with interest but the petitioner did not collect the money on time and collected the cheque on 27.06.2005.

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          Petitioner filed the complaint before the District Forum seeking interest for the period of 19 months during which he had not collected the cheque on the deposited sum.

          District Forum allowed the complaint and directed the petitioner to pay interest at the rate of 5% per month on the deposited amount of Rs.49,000/-.  District Forum calculated the interest to be Rs.46,250/-.

          Respondent being aggrieved filed the appeal before the State Commission.  The State Commission dismissed the appeal with the modification that the interest shall be paid at the rate of 5% per annum and not per month.

          Petitioner being aggrieved has filed the present revision petition.

          According to the father of the petitioner, respondent was liable to pay interest at the rate of 7% per annum as per decision of the Cabinet whereas the respondent has paid the interest at the rate of 5% per annum for the period of 19 months, during which the petitioner had not collected the cheque, in terms of the direction

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issued by the State Commission.  That the State Commission has erred in fixing the rate of interest at the rate of 5% per annum; that the order of the State Commission runs counter to the decision taken by the Government of Delhi which agreed to pay interest at the rate of 7% per annum.

          We find substance in the submission made by the father of the petitioner.  Respondent is liable to pay interest at the rate of 7% per annum on the amount of Rs.49,000/- for the period from December, 2003 to 20.06.2005 (approximately 19 months).

          Counsel for the respondent states that the respondent has already paid the interest at the rate of 5% per annum and the balance amount at the rate of 2% per annum shall be paid to the petitioner within six weeks from today.

          Revision petition stands partly allowed in above terms.