1. This appeal has been filed under section 19 of the Act 1986 in challenge to the Order dated 28.08.2018 of the State Commission in complaint no. 523 of 2017.

2. Heard the learned counsel for the builder co. (the appellant herein) and for the complainant (the respondent herein).

Perused the record, including inter alia the State Commission’s impugned Order dated 28.08.2018 and the memorandum of appeal.

3. The matter relates to a builder-buyer dispute. As evinces from the appraisal made by the State Commission, the complainant had deposited a total amount of Rs.20,08,780/- with the builder co. for a residential unit. The builder co. was not able to complete the construction of the project and deliver possession of the subject unit in the promised time-frame. As such the complainant had no other option but to get her allotment cancelled and ask for refund of the amount deposited by her. The builder co. refunded an amount of Rs.10,00,000/- by way of transfer to her bank account. It however continued to retain the balance amount of Rs. 10,08,780/-.

4. The State Commission, in the light of the proved facts of the case, ordered the builder co. to refund the outstanding amount of Rs.10,08,780/- with interest at the rate of 18% per annum from the date of deposit till the date of realisation as also to pay interest at the same rate on the earlier refunded amount of Rs.10,00,000/- for the period during which it remained deposited with the builder co. It also awarded lumpsum compensation of Rs.20,000/- for the mental agony and Rs.10,000/- towards the cost of litigation.

5. The learned counsel for the builder co. admits that in all Rs. 20,08,780/- were deposited by the complainant with the builder co. He also submits that Rs.10,00,000/- were earlier refunded and the balance Rs. 10,08,780/- continued to remain with the builder co. He concedes that reasonable interest ought to be paid on both the said amounts i.e. on the amount of Rs.10,00,000/- which had been earlier refunded and on the balance amount of Rs. 10,08,780/- which has been retained by the builder co. The only contention the learned counsel makes is that the rate of interest of 18% per annum ordered by the State Commission is unjust and inequitable and on the higher side. His submission is that the rate of interest ought to be reduced to 6% per annum.

6. The learned counsel for the complainant submits that the rate of interest of 18% per annum has been awarded by the State Commission in its considered wisdom in the facts and circumstances of the present case and there is no good reason to disturb the same. He however further submits that in order to put a period to the lis the complainant is willing to accept a rate of interest of 12% per annum.

7. It is seen that the builder co. has been patently deficient by not completing the project and offering possession of the subject unit within the promised time-frame. As such the complainant was well within her rights to demand her money back and the builder co. was dutybound to refund the same with reasonable interest. It is also seen that though the builder co. refunded an amount of Rs.10,00,000/- it did not pay any interest thereon and also that it still continued to retain Rs. 10,08,780/- without any legitimate right thereto. The complainant had to go through the trouble of bringing action before the State Commission and to thereafter also face this instant appeal filed by the builder co. before this Commission in order to obtain the money which in the first place was lawfully hers and which the builder co. was itself dutybound to refund on its own.

8. There can be no two opinions that the amount deposited by the complainant has necessarily to be refunded by the builder co. since it failed in its promise to deliver possession of the subject unit within the assured time-frame. There can also be no two opinions that just and equitable interest on the deposited amount ought to be paid by the builder co.

9. In respect of the rate of interest, the sole question which is being agitated on behalf of the builder co. in the arguments today, considering the overall facts and circumstances of the case, the manifest deficiency on the part of the builder co. in not completing the project and offering possession of the subject unit within the promised time-frame, the act of the builder co. to refund Rs. 10,00,000/- without any interest whatsoever and to highhandedly and capriciously retain the balance amount of Rs. 10,08,780/- in an indefinite way and without any legitimate right to do so, considering the continuous and continuing travails being faced by the complainant, it is felt that the rate of interest of 12% per annum, as suggested by the learned counsel for the complainant as a concession, is, in all eventualities, just and equitable, commensurate with the loss and injury suffered by the complainant.

10. As such the award made by the State Commission is modified to the extent that the balance amount of Rs. 10,08,780/- to be refunded shall carry interest at the rate of 12% per annum from the date of deposit till the date of actual realization and the amount of Rs.10,00,000/- refunded earlier shall also carry interest at the same rate of 12% per annum for the period it remained deposited with the builder co.

The lumpsum compensation of Rs.20,000/- and the cost of litigation of Rs.10,000/- awarded by the State Commission shall remain undisturbed.

The award as modified herein shall be complied with by the builder co. within six weeks from today, failing which the State Commission shall und

ertake execution, for ‘enforcement’ and for ‘penalty’, as per the law. The amount if any deposited by the builder co. with the State Commission in compliance of this Commission’s Order dated 23.08.2021 along with interest if any accrued thereon shall be utilized by the State Commission towards satisfaction of the award as modified herein. 11. The Registry is requested to send a copy each of this Order to the parties in the appeal and to their learned counsel as well as to the State Commission immediately. The stenographer is also requested to upload this Order on the website of this Commission immediately.