Chandigarh Housing Board fined Rs 50,000

Chandigarh, January 17

Setting aside the decision of the district forum-I, the State Consumer Disputes Redressal Commission has slapped a fine of Rs 50,000 on Chandigarh Housing Board (CHB) for its failure to maintain the record resulting in accrual of interest on the due amount for the shop allotted to a Sector-46 resident.

State Commission president Justice Sham Sunder and members Neena Sandhu and Jagroop Singh Mahal while setting aside the impugned order observed, “We are, however, of the opinion that instead of directing the opposite party to refund the whole amount of Rs 2,06,109 to the complainants, interest of justice would be met if we direct that a sum of Rs 50,000 be paid by the opposite party as compensation to the complainants. The opposite parties shall
also pay Rs 5,000 as costs of litigation.”

The complainant, Saroj Dogra, submitted that she along with her late husband purchased a booth in Sector 49-A, in the name of their son Nipun Dogra from the CHB for Rs 15.70 lakh in an auction held on October 30, 2002. They deposited 25 per cent of the bid money along with Rs 71,667 towards ground rent for first nine years within time and took the possession on December 18, 2002. They were required to pay 75 per cent of the bid price which was Rs 11,77,500 either within 30 days (without interest) or with 18 per cent interest per annum in three instalments payable up to December 1, 2005. After paying 75 per cent, they approached the CHB to issue a ‘No Due Certificate’. The CHB asked them to deposit another sum of Rs 2,62,000 towards interest which was deposited by them on September 18, 2004. However, to their utter surprise, the CHB instead of issuing the ‘No Due Certificate’ informed on June 28, 2010, that it had not deposited the balance 75 per cent payment of bid money. After they gave all details of the amounts deposited, the CHB on August 9, 2010, asked them to deposit Rs 3,83,789 (Rs 1,77,680 as principal and Rs 2,06,109 as interest) which was deposited by them in protest on September 15, 2010.

The counsel for the CHB pleaded that the complainants deposited the instalments in piecemeal manner at their own sweet will and evidently in contravention of the payment schedule. Thus, they were rightly burdened with the interest and they could not escape its payment being a contractual obligation. It was further pleaded that ‘No Dues Certificate’ could not be granted to the allottee after reconciliation of the accounts an amount of 3,83,789 was found due against them.

The commission further ordered, “CHB would be free to recover the amount of compensation, interest and costs from its officials who were required to maintain the record but did not send any reply and rather misplaced the application, of course after following proper procedure as required under the Service Rules.”