Ashoka Investment Co. Vs United Towers India (Pvt.) Ltd. (Supreme Court of India)
Conclusion: In present facts of the case, the Hon’ble Supreme Court held that the builder should also pay interest for it’s default to the buyer at the same rate (18% in this case), which is collected by him on default of the buyer as per agreement.
Facts: In present facts, the Appeal has been under Section 23 of the Consumer Protection Act, 1986 against the order dated 16.03.2015 passed by the National Consumer Disputes Redressal Commission. By the said order, the NCDRC directed the respondents to refund an amount of Rs.4,95,000/(four lakhs and ninety five thousand) being total sale consideration to the appellant with interest @ 9 % per annum w.e.f. 17.01.1995 till the date of refund/compliance.
In the said case the appellant in 1980 applied for purchase of two flats for a total sale consideration of Rs.4,95,000/-. The delivery was to be made within a period of 18-21 months under normal conditions. In the agreement it was mentioned that the builder would be at liberty to insist for payment of the amount due together with interest @ 18% per annum from the date of default till the date of payment on the defaulted amount. A dispute arose in 1991 when the respondent raised demand of Rs.1,56,046/- and Rs.1,62,202/- for both apartments, which were objected and request to possession was made by the appellants. In 1999 both apartments were transferred by cancelling the allotment.
The Appellant approached NCDRC, wherein the Appellant mainly prayed for (i) Possession of both Apartments along with Rs. 22,50,000/- and (ii) In alternative, Rs.48,27,000/- with interest @ 18% per annum. It was observed by NCDRC that the appellant have approached NCDRC after lot of delay and the Respondents were directed to refund the amount along with interest @ 9% w.e.f. 17.01.1995 till the date of refund/compliance.
The Hon’ble Supreme Court observed that there was no appeal by the respondent. Further, it was observed that the rate of interest awarded was only 9% and under the agreement, in the event of default, the appellant’s liability to pay interest on the defaulted amount could go up to 18%, therefore it was considered that it would be just and proper in the facts of the present case that 18% interest be awarded on the refund amount of Rs. 4,95,000/- w.ef. 17.01.1995 till the date, it is paid.
Accordingly, the appeals were partly allowed by enhancing rate of interest on refund.
