SC/ST/Backward And Minority Employees House Building Co-Operative Society Held Liable For Failure To Allot Residential Site For 9 Yrs, Bangalore District Commission Awards Compensation

Brief Facts:

Mr C. Achuth (“Complainant”) was a member of the State Government SC/ST/Backward & Minority Employees House Building Co-operative Society Ltd. (“Society”). He applied for the allotment of a residential site in Nelamangala Taluk, Bengaluru. The complainant had made payments totalling Rs. 10,60,000/- to the Society through cheques, and all these payments were duly acknowledged. However, despite repeated requests over nine years, the Society failed to fulfil its commitment of allotting and registering the residential site in the complainant’s name or executing the necessary sale deed. In an attempt to address this issue, the complainant sent a legal notice to the Society, demanding either the allotment and registration of the site or a refund of the amount paid, with interest. The Society did not respond to this legal notice, prompting the Complainant to file a consumer complaint in the Bangalore I Additional District Consumer Disputes Redressal Commission (“District Commission”).

The Complainant contended that he had fulfilled all requirements as a member of the Society, including making payments for the residential site. He argued that the Society had failed to carry out its responsibilities, including developing the layout, allotting the site, executing the sale deed, or refunding the amount he had paid. On the other hand, the Society did not appear or present any form of defence in response to the complaint.

Observations by the Commission:

The District Commission noted that the Complainant had become a member of the Society and had followed the necessary procedures, including making payments totalling Rs. 10,60,000/- through cheques for a residential site measuring 30x40 in a proposed layout. It observed that the Society, despite acknowledging these payments, failed to fulfil its commitments over nine years. This failure included not developing the layout, not allocating the site, not executing the sale deed, and not refunding the amount paid by the Complainant.

Consequently, the District Commission directed the Secretary of the Society to allot and execute a sale deed in favour of the Complainant within three months, as initially agreed upon. In case no sites were available for allocation in the aforementioned layout, the Society was instructed to refund the entire amount paid by the Complainant, along with interest at a rate of 12% per annum, also within three months. The Society was further directed to pay compensation of Rs. 50,000/- to the Complainant for the deficiency in service and an additional Rs. 5,000/- as the cost of litigation, within three months.

Case: Sri C. Achuth vs The Secretary Chief Executive Office State Government and others

Case No.: CC/48/2023

Advocate for the Complainant: Sri. M. Sreekantaiah

Advocate for the Respondent: None (Ex -Parte)

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