SECRETARY, BHUBANESWAR DEVELOPMENT AUTHORITY versus SUSANTA KUMAR MISHRA

SECRETARY, BHUBANESWAR DEVELOPMENT AUTHORITY versus SUSANTA KUMAR MISHRA

Charging interest from the date of default in payment of instalments at 15% per annum is valid under the lease-cum-sale agreement; refusal to execute the sale deed until payment of balance due does not constitute deficiency in service under the Consumer Protection Act, 1986.

Parties
Appellant: Secretary, Bhubaneswar Development Authority; Respondent: Susanta Kumar Mishra
Jurisdiction
India
Judgment Date
30 January 2009
Procedural Posture
Civil Appeal / Appeal Against Order of National Consumer Disputes Redressal Commission, New Delhi
Outcome
Appeal allowed; orders of State Commission and National Commission set aside; order of District Forum restored.
Legal Topics
Deficiency in Service, Interest on Defaulted Instalments, Lease Cum Sale Agreement, Consumer Protection Act, 1986
Contract Law Consumer Law Deficiency in Service Interest on Defaulted Instalments Lease Cum Sale Agreement Consumer Protection Act, 1986

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Parties

Secretary, Bhubaneswar Development Authority

Appellant

Susanta Kumar Mishra

Respondent

Procedural Posture

Civil Appeal / Appeal Against Order of National Consumer Disputes Redressal Commission, New Delhi

Legal Issues

  1. 1 Whether charging interest from the original date of allotment under lease-cum-sale agreement is justified
  2. 2 Whether refusal to execute sale deed until payment of dues is a deficiency in service under Consumer Protection Act, 1986
  3. 3 Whether charging interest on defaulted instalments, including interest component, amounts to compound interest

Ratio Decidendi

Charging interest from the date of default in payment of instalments at 15% per annum is valid under the lease-cum-sale agreement; refusal to execute the sale deed until payment of balance due does not constitute deficiency in service under the Consumer Protection Act, 1986.

Court Disposition

Appeal allowed; orders of State Commission and National Commission set aside; order of District Forum restored.

Orders

  • On payment of the balance amount due, the appellant shall execute the sale deed if not already executed.