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2004 DIGILAW 1685 (SC)

Haryana Urban Development Authority v. L. P. SEHGAL

2004-12-01

D.M.DHARMADHIKARI, H.K.SEMA

body2004
ORDER 1. Leave granted. 2. In the present case, the respondent who is an allottee of a plot of the appellant Haryana Urban Development Authority approached with a complaint to the District Forum claiming interest on the amount deposited by him for allotment of plot and Rs 15,000 as compensation. In addition, Rs 5000 was claimed as compensation for harassment and mental agony. The District Forum awarded interest at the rate of 15% per annum on the amount deposited from the date of deposit till the delivery, of possession. Separate award of Rs 50,000 for compensation towards escalation and Rs 5000 for harassment and mental agony was also awarded. 3. Aggrieved by the award of the District Forum both the parties preferred appeals. The allottee claimed enhancement of quantum of compensation and the Authority challenged the award. The State Forum held that there was no justification to award interest as possession of the plot was offered to the complainant which was refused. It was also held that in the earlier complaint filed by the allottee, no claim for interest was made. Nonetheless the State Forum upheld the award of Rs 50,000 as compensation and set aside the interest awarded at the rate of 15%. The cross-appeal preferred by the complainant for enhancement of the amount of compensation was also dismissed. 4. The complainant then approached the National Forum in revision. The National Forum by the impugned order has held that where interest is awarded, it is in the nature of compensation and separate compensation ought not to have been awarded by the State Forum. The National Forum set aside the award of compensation for escalation and mental agony but granted the interest at the rate of 18%. 5. Learned counsel appearing for the Authority in this appeal states that interest at the rate of 12% per annum has already been paid and the possession of plot has been offered to the allottee. This Court in the case of Ghaziabad Development Authority v. Balbir Singh1 has disapproved the award of interest at the rate of 12% or 18% at flat rate, without consideration of the facts and circumstances of the case concerned. In our considered opinion, the interest awarded and paid at the rate of 12% would serve the interest of justice, more so when an offer for the plot has also been made. In our considered opinion, the interest awarded and paid at the rate of 12% would serve the interest of justice, more so when an offer for the plot has also been made. Consequently the appeal is partly allowed by restricting the interest at the rate of 12% per annum already paid. 6. We also make it clear that whatever has already been paid, if found in excess, shall not be recovered from the allottee.