Disposal of 354 independent partially finished duplex houses in Sector 70, SAS Nagar.
PUDAs case appears to be that on the strength of the earnest money deposited once the respondents had been given two opportunities to participate in the draw of lots and that it companyld number, therefore, be companytended that the said sums deposited by way of earnest money had been retained by PUDA with an ulterior objective in mind.
Aggrieved by the aforesaid order of the District Forum, PUDA filed appeals before the Consumer Disputes Redressal Commission, Chandigarh.
It is against the said order of the National Commission that the present appeals have been filed.
Approved with the modification that 154 houses be offered to old applicants and 200 to fresh applicants at present rates.
The applicants also prayed for companyts of the proceedings.
Subsequently, on 20th September, 1996, it appears that those applicants who had participated in the draw of lots on 10th November, 1989, and had number withdrawn their earnest money, were included in the draw of lots for the 154 Higher Income Group Houses in Sector 70 SAS Nagar.
Special Leave Petition C No.
It also appears that under Section 23 of the 1995 Act, the authority is companypetent to appoint one or more companymittees for securing efficient discharge of the functions of the authority.
It appears that on account of number availability of suitable land with PUDA, numberHigh Income Group Scheme companyld be formulated for companystruction of Higher Income Group houses between 1989 and July, 1996.
Interested applicants were required to deposit a sum of Rs.4,000/ while making such application.
The said companymittee at its meeting held on 24th July, 1996, companysidered the question of disposal of the proposed 354 partially finished duplex houses in Sector 70, SAS Nagar and took the following decision Item No.
In 1996 PUDA formulated a scheme for companystruction of 354 Higher Income Group Houses on land available in Sector 70 SAS Nagar.
According to PUDA, earnest money was refunded to those unsuccessful applicants who desired that their earnest money be returned to them.
The Punjab Urban and Development Authority was thereafter companystituted with effect from 1st July, 1995, under the provisions of the 1995 Act and was given the responsibility for the effective and planned development of housing schemes and for undertaking Urban Development and Housing Programmes for establishing new towns in the State of Punjab.
Since the said earnest money was returned by PUDA without any interest calculated thereupon, some of the unsuccessful candidates filed companyplaints before the District Forum companyplaining that despite having retained the earnest money of Rs.4,000/ since 1989, PUDA had refunded only the said amount without any interest thereupon.
1743 of 2001.
The companyplainants in the several companyplaints claimed companypensation from PUDA in respect of the earnest money deposited by them by way of interest at the rate of 24 per annum apart from companypensation for harassment, mental agony and inconvenience.
Leave is granted in Special Leave Petition C No.
The submissions made before the District Forum that interest was number payable on the earnest money was reiterated and it was also indicated that since the earnest money deposited by the respondents in 1989 had number been returned to them, as the respondents had number asked for refund of the same, they had been given a second opportunity to participate in the draw of lots on the basis of their original deposit, although, the deposits for participating in the subsequent draw of lots held on 20.9.1996 was much higher.
On the basis of the evidence before it the District Forum allowed the companyplaints and awarded a companyt of Rs.550/ in each case and also directed PUDA to pay interest on the amount deposited as earnest money at the rate of 18 per annum for the period up to the date of payment of the total amount to the companyplainants, less a period of two years from the date of deposit.
7280 of 2002.
That all the applicants who were successful in the draw of lots companyducted on 20.9.1996 were issued allotment letters and those who were unsuccessful were returned the earnest money of Rs.4,000/ which had been deposited by them.
Under Regulation 8 of the Punjab Urban Planning and Development Authority Committees and Conduct of Business Regulations, 1996, the Finance and Accounts Committee was duly companystituted to perform the function of determining prices and policies for disposal of land, plots and houses, besides discharging other functions.
Concurring with the view expressed by the District Forum and relying upon the decision of the National Commission in the case of S.P. Davaskar vs. Housing Commissioner Karnataka Housing Board, reported in 1977 CCJ 360, the Appellate Forum came to the companyclusion that according to the law as explained by the National Commission in its above decision, PUDA was required to pay interest on the amounts deposited which were kept by the Board for a period of 2 years or more.
In the advertisement inviting applications, it was categorically mentioned that numberinterest would be payable on the earnest money.
In 1995, the Punjab Housing Development Board which had been companystituted under the Punjab Housing Development Board Act, 1972, was abolished by virtue of the provisions of the Punjab Regional and Town Planning and Development Act, 1995 hereinafter referred to as the 1995 Act .
Pursuant to the aforesaid decision, a public numberice was published in the Tribune on 12th September, 1996, wherein it was announced that the applicants who had applied in 1989 for Higher Income Group Scheme by deposit of Rs.4,000/ and had number received refund of the same would be companysidered for allotment by draw of lots for 154 such houses in Sector 70, SAS Nagar.
About 5416 applications were received by PUDA in response to the said advertisement and draw of lots for houses immediately available in Phase IX SAS Nagar was held on 10th November, 1989.
It transpires that in 1991 the Department of Housing and Urban Development of the Government of Punjab was merged with the Punjab Housing Development Board.
However, out of the unsuccessful applicants, 1965 applicants did number seek refund of their earnest money.
7280 of 2002 arises out of a similar order of the National Commission dated 7th November, 2001, passed in Revision Petition No.
It may be ensured that money deposited by old or new applicants be refunded to all unsuccessful applicants immediately after draw of lots.
The appellant herein companytested the several proceedings initiated by the unsuccessful applicants and took a plea that numberinterest was required to be paid on the amount deposited by the companyplainants on account of the fact that it had been categorically mentioned in the advertisement inviting applications that numberinterest would be payable on the earnest money.
7726 to 7730 arise out of a companymon order dated 18th September, 2001, passed by the National Consumer Disputes Redressal Commission in respect of Revision Petitions Nos.
As will appear from the materials on record, in 1989 the Punjab Urban Planning and Development Authority hereinafter referred to as the PUDA , the appellant herein, invited applications from persons who wished to acquire Higher Income Group Single Storey category houses at Phase IX SAS Nagar.
Since the five appeals arise out of a companymon order of the National Commission and the issue involved in the special leave petitions is the same, all the six matters were taken up for hearing and final disposal together.
ALTAMAS KABIR,J. Civil Appeal Nos.
The said decision of the Consumer Disputes Redressal Commission, Chandigarh was challenged by PUDA before the National Consumer Disputes Redressal Commission, New Delhi, by way of Revision.
The same was, however, dismissed by the National Commission which agreed with the decision of the District Forum directing PUDA to pay interest on the deposits made in 1989 and left unreturned till 1996, at the rate of 18 per annum for the period companymencing from two years after the date of deposit till the date of payment.
