- (1.) These appeals arise out of a consumer dispute which was instituted before the National Consumer Disputes Redressal Commission ("NCDRC"), in the form of Consumer Case 750 of 2015.
(2.) Vijay Gupta (appellant in the first of the two appeals and hereinafter referred to as "the buyer") applied for allotment in a housing scheme managed by the Greater Mohali Area Development Authority ("GMADA"). He was informed that his application had been declared to be successful at a draw of lots. On 22 May 2012, a letter of intent was issued to the buyer. The relevant clause in regard to the interest payable to the buyer in the event of delay is as follows: "3. Ownership and possession *** (ii) Possession of apartment shall be handed over after completion of development works at site in a period of 36 months from the date of issuance of Letter of Intent. In case for any reason, the Authority is unable to deliver the possession of apartments within stipulated period, allottee shall have the right to withdraw from the scheme by moving an application to the Estate Officer, in which case, the Authority shall refund the entire amount deposited by the applicant along with 8% interest compounded annually. Apart from this, there shall be no other liability of the Authority."
(3.) The buyer deposited a total amount of Rs 66,24,000. Since possession of the apartment was not handed over, he filed a consumer dispute seeking refund. The NCDRC, by its order dated 10 March 2016, ordered a refund, together with interest at the rate of 8% per annum compounded annually and, in addition, directed GMADA to refund the service tax dues, penalty charges for delayed deposits, litigation charges and compensation in the amount of Rs 1 lakh.;