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TMI Blog2015 (7) TMI 1443X X X X Extracts X X X X X X X X Extracts X X X X ..... for grant of higher interest is without discussion of any material. The judgment and order under appeal indicates no material for coming to the impugned finding that payment of interest on the registration amount should not be less than one charged from the applicants when they commit a default. A default clause is introduced to deter any delay or default and hence such penalty is by its very nature a deterrent one. That by itself offers a reasonable justification for the appellant to charge a higher rate of interest in the case of delay/default. So far as interest on the registration amount is concerned it stands on a different footing. In absence of relevant pleadings and evidence it cannot be presumed that the appellant has resorted to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt Delhi Development Authority is a statutory body constituted under the Delhi Development Act, 1957. It is entrusted with the planned development of Delhi and claims to function on a No Profit No Loss basis in the matter of providing subsidized housing to different income groups. The appellant invited applications from eligible members of the general public during the period May 1985 to August 1985 in a scheme described as Sixth Self Financing Housing Registration Scheme, 1985. The respondent deposited the requisite sum of Rs. 15000/- and by filing application became a member of that scheme. In due course the appellant released a scheme for allocation of self financing society flats. Pursuant to advertisements published by the appellant th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncellation of allotment made by the respondent but it refunded the registration amount along with only 7% interest in terms of the offer document which had been accepted by the respondent and was thus the rate finalized by agreement between the parties. 5. The respondent in his complaint before the Commission filed on 29.6.1997 raised two-fold grievances which have been noted by the Commission in paragraph 3 of the impugned judgment. The first grievance was against the levy of cancellation charges and penalty when the flat allotted to him was not in the 6 localities for which he had indicated his preference. The second grievance of the respondent was that the interest paid on the registration amount is at a rate lower than the rate at whic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ding to learned counsel for the appellant when the main grievance of the respondent in respect of levy of cancellation charges and penalty was not found acceptable by the Commission and when the Commission found nothing wrong in the action of the appellant in the light of declared policy and contract governing the matter at hand, it should not have enhanced the contract rate of 7% interest over registration amount on the singular ground that it was less than the one charged from the applicants when in default. According to learned counsel for the appellant the Commission was wholly unjustified in interfering with the contractual terms and conditions and directing the appellant to pay a higher rate of interest at 12% p.a. on the specious ple ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tive/monopolistic trade practice pursuant to inquiry under the provisions of the Act, the Commission clearly erred in compensating the respondent with a higher rate of interest. Even the basis for grant of higher interest is without discussion of any material. The judgment and order under appeal indicates no material for coming to the impugned finding that payment of interest on the registration amount should not be less than one charged from the applicants when they commit a default. A default clause is introduced to deter any delay or default and hence such penalty is by its very nature a deterrent one. That by itself offers a reasonable justification for the appellant to charge a higher rate of interest in the case of delay/default. So f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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