DELHI DEVELOPMENT AUTHORITY versus P.R. SAMANTA

The Commission erred in interfering with the contractual rate of interest in absence of findings of unfair or restrictive trade practices; awarding interest at 12% p.a. and Rs.5000/- litigation charges was unjustified, and the contractual rate of 7% p.a. as stipulated in the offer document is reasonable.

Parties: Appellant: Delhi Development Authority; Respondent: P.R. Samanta
Jurisdiction: India
Judgment Date: 21 July 2015
Procedural Posture: Civil Appeal / Final Judgment
Outcome: Appeal allowed; impugned order set aside
Legal Topics: Rate of Interest on Refund, Self Financing Housing Schemes, Contractual Terms in Housing Allotment, Unfair Trade Practice

Monopolies and Restrictive Trade Practices Rate of Interest on Refund Self Financing Housing Schemes Contractual Terms in Housing Allotment Unfair Trade Practice

Case Brief

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Parties

Delhi Development Authority

Appellant

P.R. Samanta

Respondent

Procedural Posture

Civil Appeal / Final Judgment

Legal Issues

1 Whether the respondent was entitled to interest at a rate higher than 7% p.a. on refund of registration amount under the housing scheme
2 Whether the Commission was justified in awarding 12% p.a. interest and litigation charges in absence of unfair trade practice or restrictive trade practice

Ratio Decidendi

Court Disposition

Appeal allowed; impugned order set aside

Orders

Order passed by the Commission awarding interest at 12% per annum and litigation charges of Rs.5000/- set aside.
Appellant to bear its own cost of litigation.