PUNJAB URBAN PLANNING & DEVELOPMENT AUTHORITY versus BHUPINDER SINGH

PUNJAB URBAN PLANNING & DEVELOPMENT AUTHORITY versus BHUPINDER SINGH

Applicants who failed to seek refund and availed opportunity for second draw cannot claim interest for the entire period; awarding of interest at 18% p.a. reduced to 10% p.a. from date of deposit till payment; stipulation that no interest was payable limits entitlement unless deficiency in service is established.

Parties
Appellant: Punjab Urban Planning & Development Authority; Respondent: Bhupinder Singh
Jurisdiction
India
Judgment Date
14 July 2008
Procedural Posture
Civil Appeal / Appeal From National Consumer Disputes Redressal Commission
Outcome
Appeals partly allowed
Legal Topics
Compensation, Interest on Earnest Money, Deficiency in Service
Consumer Law Housing Law Compensation Interest on Earnest Money Deficiency in Service

Case Brief

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Parties

Punjab Urban Planning & Development Authority

Appellant

Bhupinder Singh

Respondent

Procedural Posture

Civil Appeal / Appeal From National Consumer Disputes Redressal Commission

Legal Issues

  1. 1 Whether interest is payable on earnest money retained by the housing authority when there is a stipulation to the contrary
  2. 2 Whether retention of earnest money amounts to deficiency in service under the Consumer Protection Act, 1986

Ratio Decidendi

Applicants who failed to seek refund and availed opportunity for second draw cannot claim interest for the entire period; awarding of interest at 18% p.a. reduced to 10% p.a. from date of deposit till payment; stipulation that no interest was payable limits entitlement unless deficiency in service is established.

Court Disposition

Appeals partly allowed

Orders

  • Rate of interest reduced from 18% per annum to 10% per annum from date of deposit till date of payment
  • Cost of litigation awarded by District Forum set aside