HARYANA URBAN DEVELOPMENT AUTHORITY versus SAURABH AGGARWAL

HARYANA URBAN DEVELOPMENT AUTHORITY versus SAURABH AGGARWAL

Interest at 18% p.a. cannot be uniformly granted; development authority must pay interest at 15% p.a. from date of each deposit till payment. Interest cannot be charged on delayed payment prior to the date of offer of possession. Excess recovery or wrongful deduction must be refunded to allottee with 15% interest. TDS amounts deducted must be paid to allottee with 15% interest, and no further amounts shall be recovered without Supreme Court's permission.

Parties
Appellant: Haryana Urban Development Authority; Respondent: Saurabh Aggarwal
Jurisdiction
India
Judgment Date
24 September 2004
Procedural Posture
Civil Appeal / Final Disposition by Supreme Court
Outcome
Appeal disposed of; order of National Commission set aside
Legal Topics
Interest on Delayed Possession, Compensation for Delay, Deficiency of Service, TDS Refund
Consumer Protection Housing Law Interest on Delayed Possession Compensation for Delay Deficiency of Service TDS Refund

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Parties

Haryana Urban Development Authority

Appellant

Saurabh Aggarwal

Respondent

Procedural Posture

Civil Appeal / Final Disposition by Supreme Court

Legal Issues

  1. 1 Whether interest at the rate of 18% per annum can be granted uniformly in cases of delayed possession by a development authority
  2. 2 Whether the development authority is entitled to charge interest on delayed payments prior to offer of possession
  3. 3 Proper calculation and refund of excess recovery and TDS

Ratio Decidendi

Interest at 18% p.a. cannot be uniformly granted; development authority must pay interest at 15% p.a. from date of each deposit till payment. Interest cannot be charged on delayed payment prior to the date of offer of possession. Excess recovery or wrongful deduction must be refunded to allottee with 15% interest. TDS amounts deducted must be paid to allottee with 15% interest, and no further amounts shall be recovered without Supreme Court's permission.

Court Disposition

Appeal disposed of; order of National Commission set aside

Orders

  • Authority must pay interest at 15% p.a. from date of each deposit till payment.
  • Authority will not charge interest for delayed payment prior to offer of possession (July 22, 1997).