Page 1 of 5 Date of Filing:21/01/2009 Date of Order :.07/05/2009 BEFORE THE I ADDITIONAL DISTRICT CONSUMER DISPUTES REDRESSAL FORUM SESHADRIPURAM BANGALORE - 20 Dated: 7 th DAY OF MAY 2009 PRESENT Sri. Bajentri H.M, B.A, LL.B., President Smt.C.V. Rajamma, B.Sc., LL.B., PGDPR, Member COMPLAINT NO. 183 OF 2009 Mr.V.Sriramachandran, S/o Mr.Venkatasubramanian, A/a 43 yrs, Residing at Villa 21, Cloud 9, Bommasandra, Bangalore. Reptd by its Attorney Holder Sri.M.S.swaminathan, S/o M.S.Subramaniyam, A/a 49 yrs, R/at 333/B, Renka Colony, Bannerghatta Road, Bangalore 560 076.. Complainant. V/s M/s Alliance Buildwell Projects Private Limited, Represented by its Authorised Signatory, having its office at No.6-3-883/5, Venkat Plaza, 5 th Floor, Panjagutta, Hyderabad 500 082. Plaint amended as per court order dt:2/2/09 Alliance Buildwell projects Pvt Ltd., Prestige Tech Park, Jupiter Block, 2 nd Floor, Marathhalli Sarjapur Ring Road, Kadabommanahalli, Bangalore - 87. Opposite Party
Page 2 of 5 -: ORDER:- This complaint is for a direction to the Opposite Parties to refund the token advance of Rs.5,00,000/- with interest at 24% and to pay compensation of Rs.10,00,000/- on the following grounds:- The Opposite Party which is carrying on the business of development work in putting up the residential sites, Apartments, etc., had conducted a promotional show at Kuwait on 26/06/2008 for promotion of business in respect of development of a new project named inner circle at Shamipet, Hyderabad. After discussion with the representative of the Opposite Parties at the promotional show, with a view to own a property in India, the complainant inclined and evinced interest in the said project and booked a Villa making payment of token advance of Rs.5,00,000/- by cheque dated:26/06/2008. The payment was made on the oral assurance of the representatives of the Opposite Parties that the said amount would be refunded in full at any time without any queries and on demand made by the complainant. On payment of the token advance, the Opposite Party booked Villa No.71 in the said project and also issued the receipt dated:26/06/2008. Subsequently, after consulting his family members and also for his personal reasons, the complainant was no more interested for purchase of the Villa in the said project and therefore by the e mail letter dated:29/07/2008 requested the Opposite Party for refund of the token advance amount of Rs.5,00,000/-. In spite of several e mail letters and reminders, the Opposite Party did not respond to the request, but went on giving evasive and untenable replies. The Opposite Parties have been advertising to pay 10% interest in case of cancellation of the booking, but in this case, they sent evasive reply threatening to deduct Rs.50,000/- without any reason. He sent legal notice dated:04/12/2008 calling upon the Opposite Parties to refund the entire amount of Rs.5,00,000/- with interest at 24% Per Annum and compensation of
Page 3 of 5 Rs.10,00,000/- towards harassment and agony. But the Opposite Parties neither complied with the demand nor gave any reply to the legal notice. The act of the Opposite Parties clearly amounts to deficiency in service besides unfair trade practice. Hence, the complaint. 3. In the version, the contention of the Opposite Parties is as under:- The complainant voluntarily withdrew the booking of the property as he had no longer interest in purchasing the same and not on account of any defect in the property or deficiency in service on the part of the Opposite Party. In Para-11 of the complaint, the complainant has stated that the Opposite Parties had agreed to pay interest at 10% Per Annum in case of cancellation of the bookings. Therefore, the complainant is not entitled to claim interest at 24% Per Annum as claimed as the same is contrary to the contract between the parties nor he is entitled to any compensation as there was no deficiency of service on the part of the Opposite Parties. The only deficiency on the part of the Opposite Parties if any is the delay in refunding the sum of Rs.5,00,000/- with interest at 10% Per Annum from 29/07/2008 the date on which the complainant informed about the cancellation of the booking. They are tendering the sum of Rs.5,00,000/- by way of Pay Order drawn in favour of the complainant and undertake to pay the interest thereon on the next date of hearing. Therefore, the complaint may be disposed off accordingly. 4. In support of the respective contentions, both parties have filed their affidavits. We have heard the arguments on both side. 5. The points for consideration are:- 1. Whether the complainant have proved deficiency in service on the part of the Opposite Parties? 2. Whether the complainant entitled to the relief prayed for in the complaint? 6. Our findings are:-
Page 4 of 5 Point No.1 : In the Affirmative Point No.2 : As per final order, for the following:- -:REASONS:- 7. The fact that the complainant paid Rs.5,00,000/- on 26/06/2008 as token advance for booking a Villa in the project of the Opposite Parties and that on 29/07/2008 he cancelled the booking is not disputed. Subsequent to 27/09/2008 the complainant had sent several e mail letters requesting the Opposite Party to refund the booking amount and also sent the legal notice dated:04/12/2008 and thereafter he has filed the complaint on 21/01/2009. From the correspondence between the parties, it is also seen that at some point of time, the Opposite Party proposed to deduct Rs.50,000/- out of the amount paid by the complainant and to refund only Rs.4,50,000/- without any interest. Probably that made to the complainant to file the present complaint seeking refund of the entire amount of Rs.5,00,000/- with interest at 24% Per Annum and compensation of Rs.10,00,000/-. After making payment of the advance amount on 26/06/2008, the complaint is filed on 21/01/2009 in about six months from the date of making payment. From the order sheet maintained in this case, it is evident that after entering appearance, the Opposite Parties prayed for time to report settlement. On 16/04/2009, the counsel for the Opposite Party tendered a cheque for Rs.5,00,000/-, but the same was not accepted by the learned counsel for the complainant. Even in the version, the Opposite Parties have made it clear that they are ready to refund the sum of Rs.5,00,000/- with interest at 10% Per Annum from 29/07/2008 the date on which the complainant cancelled the booking. In Para-11 of the complaint, the complainant himself has admitted that the Opposite Parties had promised to pay the interest at 10% Per Annum in case of cancellation of the booking. If that so, the complainant is not entitled to claim interest at 24% Per Annum. No foundation is laid for claiming compensation of Rs.10,00,000/- and therefore the complainant is not entitled for the same. Admittedly in spite
Page 5 of 5 of several reminders and demands, the Opposite Party failed to refund the amount. Even the Opposite Parties admit that the deficiency if any on their part is the delay in refunding the amount to the complainant. The Opposite Parties also admit their liability to pay the interest at 10% Per Annum on the amount to be refunded to the complainant. In the above circumstances, in our opinion it is just and proper to direct the Opposite Parties to refund the sum of Rs.5,00,000/- with interest thereon at 10% Per Annum from 27/09/2008. In the result, we pass the following:- -:ORDER:- 1. The complaint is ALLOWED IN PART. 2. The Opposite Parties are directed to refund Rs.5,00,000/- to the complainant with interest thereon at 10% Per Annum from 29/07/2008 till the date of payment and also to pay costs of Rs.2,000/-. Compliance of this order shall be made within eight weeks from the date of communication. 3. Send a copy of this order to both parties free of costs immediately. 4. Pronounced in the Open Forum on this the 7 th DAY OF MAY 2009. Sd/- Sd/- MEMBER PRESIDENT