BIHAR STATE HOUSING BOARD versus ARUN DAKSHY

Citation: [2005] SUPP. 2 S.C.R. 819 · Decided: 23-08-2005 · Supreme Court of India · Bench: ARIJIT PASAYAT · Disposal: Appeal(s) allowed

Judgment (excerpt)

BIHAR ST A TE HOUSING BOARD 
v. 
ARUN DAKSHY 
AUGUST 23, 2005 
[ARlJIT PASAYAT AND H.K. SEMA, JJ.] 
Bihar State Housing Board (Management and Disposal of Housing 
Estate) Regulation, 1983-Non allotment of house-Refund of eqrnest 
money-Regulation prescribing interest @ 5% thereon-Consumer Protec-
A 
B 
tion Commission awarding interest @ l 8'Y,,_correctness of-Held : Com-
C 
mission travelled beyond the statutory regulation-Respondent entitled to 
interest @ 5% only-Consumer Protection. 
The question which has arisen for consideration in the present 
appeal is whether the National Consumer Commission was right in 
awarding interest @18% on refund of earnest money deposited by 
respondent for allotment of MIG House under Bihar State Housing 
Board (Management and Disposal of Housing Estate) Regulation, 1983. 
Allowing the appeal, the Court 
HELD : Regulation 45 of the Bihar State Housing Board (Manage-
ment and Disposal of Housing Estate) Regulation, 1983 provides that 
simple interest @ 5% will be payable on the money so deposited. The 
Regulation being self-contained, the Commission should not have trav-
elled beyond the interest regulated by the statutory regulation. The 
respondent is entitled to interest @ 5% as envisaged under Regulation 
45. (822-A-B-C] 
Ghaziabad Development Aulhority v. Balbir Singh, [2004] 5 SCC 65, 
relied on. 
Bihar State Housing Board & Ors. v. Vijay Sharan & Ors., SLP (C) 
No. 26021-22 of 1995 disposed of by Supreme Court on 17.2.1997, 
referred to. 
CIVIL APPELLATE JURISDICTION 
Civil Appeal No. 7225 of 
D 
E 
F 
G 
2002. 
II 
819 
820 
SUPREME COURT REPORTS [2005] SUPP. 2 S.C.R. 
A 
From the Judgment and Order dated 5.12.2001 of the National Con-
B 
sumer Disputes Redressal Commission, New Delhi in R.P. No. 2099 of 
1999. 
Sharvan Kumar and Himanshu Shekhar for the Appellant. 
Respondent-Ex-parte. 
The Judgment of the Court was delivered by 
H.K. SEMA, J. : This appeal preferred by the Bihar State Housing 
C Board is directed against the judgment and order dated 5 .10.2001 passed by 
the National Consumer Disputes Redressal Commission (hereinafter the 
Commission) passed in Revision Petition No.2099 of 1999 affirming the 
orders passed by the State Consumer Dispute Redressal Commission and 
District Consumer Forum awarding interest @ 18%. 
D 
Despite receipt of the notice, none entered appearance on behalf of the 
sole respondent. 
Briefly stated the facts are as follows:-
E 
On 27.7.1989, the respondent deposited an amount of Rs.15,000 for 
allotment of MIG House in Barari Housing Colony in Bhagalpur, Bihar, 
under the Bihar State Housing Board (Management and Disposal of Housing 
Estate) Regulation 1983 (hereinafter the Regulation). Under the Regulation, 
the allotment of plots/house/flat is to be made by draw of lottery. The 
F respondent was unsuccessful in the draw of lottery and so he could not be 
allotted a house under the MIG category. On 28.7.1993, the respondent 
issued legal notice to the appellant for refund of an amount of Rs.15,000. 
The aforesaid notice was replied by a letter dated 6.10.1993 by the appellant, 
directing the respondent to submit original pay-in-slip for the purpose of 
refund. On 15.11.1994, the respondent submitted the original pay-in-slip. 
G Thereafter, the appellant refunded Rs. l 5,000 to the respondent vide cheque 
No.223231 dated 6.12.1 <)95. On 26.3.1996, the respondent filed a complaint 
before the District Forum. The District Forum passed an Award directing 
the appellar.t to pay Rs.15,000 with 18% interest. The appellant was also 
directed to pay Rs.5,000 as compensation. Being aggrieved, the appellant 
H filed an appeal before the State Consumer Commission, which was rejected, 
BIHAR STATE HOUSING BOARD v. ARUN DAKSHY [SEMA, J.] 821 
being barred by limitation. 
A 
Notice was issued limited to the question of rate of interest. 
At this stage, it may be noted that the contention of the appellant, 
before the Commissions was that as per Regulation 4" of the Regulation, B 
simple interest @ 5% will be payable on an amount of earnest money. It 
would appear from the impugned order of the National Commission dated 
5th October, 200 l, the same contention was also raised before the Commis-
sion without any result. It was also brought to the notice of the Commission 
that in an identical case in Civil Appeal Nos.1566-67 of 1997 arising out 
of S.L.P ( C ) Nos.26021-22 of 1995 titled Bihar State Housing Board & 
Ors. v. Vijay Sharan & Ors. disposed 

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