Cancellation Of Plot Allotment Upon Failure Of Payment Not Deficiency In Service: Telangana State Commission Allows Appeal By BSNL Executive Association

Brief Facts of the Case

The complainant became a member of Bharat Sanchar Nigam Ltd., Executives Association/BNSLEA/ Opposite Party for the purpose of acquiring a plot through contributions and allocation based on lots. Subsequently, BNSLEA purchased 18.5 acres of agricultural land in Mokila Village, Ranga Reddy District. The complainant was promised 600 sq. yards of land for Rs. 1,300 per sq. yard and paid Rs. 12,09,000 in installments. Receipts were issued for only part of the payment, and a cheque for Rs. 3,24,000 was returned without reason. Despite obtaining draft layout approval, BNSLEA failed to register the land in favor of the complainant. The complaint filed a complaint before the District Commission, which allowed the complaint. It directed BSNLEA to register the plot in favour of the complaint and pay Rs. 30,000 as compensation for mental agony along with Rs. 10,000 as litigation costs. Aggrieved by the District Commission's order, BSNLEA appealed before the State Commission of Telangana.

Contentions of BSNLEA

BSNLEA argued that the complainant must prove all claims except those admitted by them. They argued that the complainant joined the society and was allotted 600 sq. yards. However, they denied fixing the rate at Rs. 1,475 per sq. yard and claimed only Rs. 1,71,000 was paid at Rs. 285 per sq. yard, issuing a receipt for Rs. 1,32,000. Alleged payments of Rs. 8,85,000 and Rs. 12,09,000 were denied as false. BSNLEA accused the complainant of tarnishing its image through baseless allegations, leading to expulsion from membership and consideration of legal action under IPC Sections 499 and 500. BNSLEA offered to refund Rs. 1,71,000 and informed the complainant to collect it. It alleged the complaint aimed for wrongful gain and sought dismissal with costs.

Observations by the State Commission

The State Commission observed that it is undisputed that the complainant applied for membership and was admitted. The BNSLEA agreed to sell plots at Rs. 1,300 per sq. yard, but no evidence was submitted to prove a higher price of Rs. 1,475 per sq. yard. The complainant claimed to have paid Rs. 12,09,000 but provided receipts only for Rs. 1,71,000, leaving the rest unsubstantiated. The complainant alleged payment of development charges through cheques, one of which was returned.. However, the Commission found no proof of the claimed payments and noted the complainant's failure to substantiate them. Furthermore, it was highlighted that BNSLEA communicated about a lottery for plot allocation but barred members who hadn't paid development charges. The Commission found no evidence that the complainant paid the full plot cost. The complainant's claims about malafide allotments and alleged misdeeds were unsupported by evidence. The Commission concluded that the complainant, having failed to prove payment of the plot cost, was not entitled to plot allotment. The State Commission allowed and set aside the District Commission's order. It also directed BNSLEA to refund Rs. 1,71,000 to the complainant with 8% interest per annum.

Case Title: Bharat Sanchar Nigam Ltd., Executives Association (BNSLEA) Vs. Sri J. Sai Kumar

Case Number: F.A. No. 163/2020

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