Dispute Over Interest Calculation in Consumer Protection Case Resolved.


08 November 2024 Consumer Protection Act >> Consumer Rights  

 A recent appeal execution of DLF Homes Panchkula Pvt. Ltd., Chandigarh v/s Surender Singh Rathee & Others under Section 27A of the Consumer Protection Act, 1986, has concluded with a ruling in favor of DLF Homes Panchkula Pvt. Ltd., overturning a State Consumer Disputes Redressal Commission (SCDRC) order regarding the calculation of interest in a consumer dispute.

The case originated from a consumer complaint filed by a respondent who had acquired an independent floor in DLF Valley, Panchkula, through a transfer of allotment. The respondent sought a refund of their deposited amount, leading to a complex series of orders and appeals.


 

 

The core issue revolved around the starting date for calculating interest on the refund. The SCDRC had ordered that interest be calculated from the date of transfer (January 9, 2013). However, DLF Homes Panchkula Pvt. Ltd. contested this, arguing that the interest should be calculated from November 2, 2014, in accordance with a previous order from the National Consumer Disputes Redressal Commission (NCDRC), which aligned with the Supreme Court’s judgment in DLF Homes Panchkula Pvt. Ltd. Vs. DS Dhanda.

The DS Dhanda ruling stipulated that in cases of transferred allotments, interest should be payable from the later of either three years from the agreement date or the transfer date. In this instance, three years from the agreement date (May 11, 2012) fell on November 2, 2014, which became the contentious point.

The NCDRC, in its recent appeal, ruled that the SCDRC had erred in its calculation. The NCDRC emphasized that the prior judgment, which was based on the Supreme Court's DS Dhanda ruling, should be upheld. The NCDRC stated that altering the interest calculation during execution proceedings would effectively mean going against the decree, which is not permissible.

"The judgment in First Appeal 943 of 2017 was clearly in terms of the ratio laid down in DS Dhanda, which, as extracted above, is specific in holding that the period for the compensation would count from the date of transfer or three years after the date of the Agreement, whichever is later. Disturbing this position in execution proceedings would amount to going behind the decree, which is not permissible at this stage," stated the NCDRC in its order.

The NCDRC also dismissed the respondent's reliance on other Supreme Court judgments, clarifying that the specific circumstances of this case were governed by the DS Dhanda ruling.

Consequently, the NCDRC allowed the appeal, setting aside the SCDRC's orders and affirming that interest should be calculated from November 2, 2014. The NCDRC did not impose any costs on either party.

This decision clarifies the application of the DS Dhanda judgment in cases involving transferred allotments, providing a clear precedent for future disputes of a similar nature.


Section 27A, Consumer Protection Act - 1986  

Consumer Protection Act, 1986