GURINDER BEDI Vs. DELHI DEVELOPMENT AUTHORITY

JUDGEMENT

(1.) THIS is an appeal against the order dated 10th April/12th April, 1991 passed by the State Commission, Delhi in Case No. C-5/90 on the file of that Commission. The brief facts are that the present Appellant who was Complainant before the State Commission had got herself registered for allotment of two bed rooms flat in the Self-Financing Scheme with the Respondent -Delhi Development Authority (for short the DDA) on the terms and conditions given in the brochure issued by the latter and deposited an amount of Rs. 10,000/- as registration fee. She was allotted flat on the third floor in Sidharth Extension, Pocket C vide letter dated 4th August, 1982 at an estimated cost of Rs. 1,24,000/-. She deposited 90% of the estimated cost and according to the schedule of payment the balance of 10% was payable at the time when the letter of demand was to be issued. According to the complainant the letter of demand was to be issued within 24 months of the date of the allotment letter. In May, 1988 she received letter dated 10th May, 1988 from D.D. A. allotting her flat bearing No. 210-D at a price of Rs. 1,57,900/-. After giving a credit of Rs. 33,542/- on account of interest @ 7% per annum, according to the terms contained in the brochure payable by the DDA to the complainant on the deposited amount, she was required to deposit Rs. 13,042/-. According to the complainant this increase in the price of the flat was unwarranted. It was also pleaded by her in her complaint that the possession of the flat was delivered to her in September, 1988 and even at that time the flat was not fit for possession and it became fit for habitation in February/March, 1989. She, therefore, prayed for various amounts totalling Rs. 1,12,373/- details of which have been given in complaint.

(2.) THE claim was contested by the DDA on the ground that the disposal cost of the flat allotted to the petitioner had been worked out on the basis of the approved pricing policy of the Authority based on "No Profit No Loss Basis,,. It was explained that the main reason for escalation in the cost of the flat over the tentative cost worked out in 1982, was that though the construction of the flats was started in 1982 but the same could not be completed till 1988. In the said period there has been tremendous increase in the cost of material and labour. In reply to the complainant's allegation that she had been discriminated against as the flats in the same area which were allotted in 1986 were allotted at the cost of Rs. 1,42,200/- and the appellant was not included in the draw for allotment of flats in 1986, DDA replied that the flats allotted in 1986 had been completed by then but the flat allotted to the complainant could not be completed till 1988 and moreover, there was only nominal increase in the cost taking into consideration the cost of flats which were completed in 1986.

(3.) THE opinion among the President and the Members of the State Commission was divided. The President held that the DDA was entitled to charge escalation price from the allottee if the building was not completed within a short period after the expiry of two years. According to him if the flats could not be completed within 2 years those should have been completed within a reasonable period thereafter or at the most within a period of three years. He, therefore, held that DDA was entitled to claim escalation cost in construction of the flats at the most for