FRWA-NCDRC JUDGEMENT (PARA 20-22)

 PRESIDENT

NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION

NEW DELHI

CONSUMER CASE NO. 427,430-440 of 2014

Versus

M/s Unitech LTD (Opposite party –OP)

Para 20. It was contended on behalf of the complainants that they should be awarded compound interest at the rate of 18% per annum, which was the rate at which they were to pay interest to the builder, in the event of default on their part in making timely payment.  I however, find no merit in the contention.  The opposite parties admittedly did not agree to pay compounded interest to the complainants @ 18% per annum in case they were not able to hand over possession of the apartments within the time stipulated in the agreement.  In such a case, the complainants would be entitled only to compensation commensurate with the financial loss actually suffered by them on account of the delay on the part of the opposite parties in handing over possession of the apartments to them and some compensation for the mental agony claimed by them on account of the delay in getting possession of the flats, but, they cannot seek to make a windfall over and above the actual financial loss suffered by them.  A consumer coming to the Consumer Forum alleging deficiency on the part of the opposite party in rendering services to him can seek and recover a just and fair compensation but cannot seek to earn profit like in a commercial venture.

Para 21. It transpired during the course of arguments that the service tax has increased with effect from 01.06.015.  Had the opposite party delivered possession in time, the complainants would have paid service tax at the pre-revised rate.  I therefore, hold that the increase in service tax with effect from 01.6.2015 should be borne by the opposite party.

  

Para 22. I also feel that in order to ensure that the opposite party does honour the revised date of delivery of possession; compensation in the form of interest at a rate higher than 12% per annum should be paid by the opposite party, if the revised date of delivery of possession is not honoured by the opposite party.

Warm Regards

For FEDERATION OF RESIDENTS WELFARE ASSOCIATION

KULDEEP KUMAR KOHLI

PRESIDENT