Case nº First Appeal Nos. 53 of 1999 and 361 of 2001 of National Consumer Disputes Redressal Commission, July 25, 2011 (case 1. Chairman, Orissa State Housing Board, 2. H. Acharyya Vs 1. H. Acharyya, 2. Chairman, Orissa State Housing Board)

PresidentV.R. Kingaonkar, J. (Presiding Member) and Vinay Kumar, Member
Resolution DateJuly 25, 2011

Judgment:

Vinay Kumar, Member

  1. This matter arises from a consumer complaint filed by Shri H. Acharyya against the Orissa State Housing Board (OSHB) in 1994. The Orissa State Consumer Disputes Redressal Commission decided the matter on 15.12.1998, concluding that the Complainant was no longer interested in taking any apartment from OP/OSHB and therefore, the only issue to be decided was the rate of interest with which the amount deposited by him would need to be refunded by OSHB. The State Commission after detailed consideration of all the aspects gave the following decision:

    The complainant is certainly entitled to damages which may be calculated at the same rate at which the interest might have been payable. Taking into consideration all the aspects of the matter and conduct of each of the parties, we think it appropriate to direct the Orissa State Housing Board to refund the deposited amount of Rs. 3,25,000 with interest at the rate of 15% p.a. w.e.f. 1.1.95 upto the date of payment in view of the fact that the demand for refund of the deposited amount was made in July, 1994.

  2. In the appeal against the above order, by the OSHB, the National Commission took into consideration the cross appeal by the Complainant Shri H. Acharyya filed against the same order of the State Commission in which enhancement of interest rate was sought so as to give him a substantial amount by way of damages. The National Commission relied upon its decision in HUDA v. Darshan Kumar, pronounced on 31.8.2001 in Revision Petition No. 1197 of 1998, and enhanced the interest to 18% per year. The National Commission also directed it will be payable after allowing a period of two years from the date of payment of each installment. The order of the National Commission also shows the specific date from which 18% interest to be paid on the total amount of Rs. 3,25,000/- paid by Shri Acharyya in eleven installments. In view of this enhancement from 15% to 18%, the appeal filed by OP/OSHB was pronounced as having failed and been dismissed.

  3. Both parties to the proceedings before the National Commission went in appeal to the Apex Court. Their appeals have been allowed and the matter has been remanded to the National Commission for passing a fresh order. The operative part of this order of Hon'ble Supreme Court, pronounced on 30.4.2009, reads as follows:

    The National Commission has awarded 18% interest per annum to the Respondent-complainant on the basis of an earlier...

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