HARYANA URBAN DEVELOPMENT AUTHORITY versus RAJE RAM

Re-allottees, knowing delay in possession and accepting re-allotment, cannot claim interest; award of interest by consumer forums unjustified and warrants restitution.

Parties: Appellant: Haryana Urban Development Authority; Respondent: Raje Ram
Jurisdiction: India
Judgment Date: 23 October 2008
Procedural Posture: Civil Appeal / Appeal by Special Leave Against Orders of National Consumer Disputes Redressal Commission
Outcome: Appeals allowed; complaints dismissed
Legal Topics: Interest on Delayed Possession, Allotment of Plots, Re Allotment, Consumer Forums Jurisdiction

Consumer Protection Urban Development Interest on Delayed Possession Allotment of Plots Re Allotment Consumer Forums Jurisdiction

Case Brief

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Full judgment text Legal principles 3 Authorities cited 4 Party arguments 2 Amounts and remedies 2

Parties

Haryana Urban Development Authority

Appellant

Raje Ram

Respondent

Procedural Posture

Civil Appeal / Appeal by Special Leave Against Orders of National Consumer Disputes Redressal Commission

Legal Issues

1 Whether interest can be awarded to re-allottees for delay in delivery of possession by Development Authority
2 Whether rate of interest awarded by consumer forums is justified

Ratio Decidendi

Re-allottees, knowing delay in possession and accepting re-allotment, cannot claim interest; award of interest by consumer forums unjustified and warrants restitution.

Court Disposition

Appeals allowed; complaints dismissed

Orders

Impugned orders of District Forum, State Commission and National Consumer Redressal Commission awarding interest set aside
Appellant entitled to restitution and may recover back amounts paid as interest to respondents