Summary
The Housing Board remained liable for 30% of a flat purchaser’s refund, interest and general compensation where both it and the developer caused the project’s failure. Contractual fixed compensation payable by the developer alone did not govern the lump-sum mental-harassment award or costs. The Court upheld 10% interest and directed the Board to pay its outstanding share within eight weeks.
Issues
- Whether mental-harassment compensation and litigation costs were solely the developer’s liability under the delay clause.
- Whether the final arbitral allocation and revocation deed altered the Board’s obligation to the purchaser.
- Whether 10% interest and the outstanding payment direction were justified.
Held
- Clause 9(c)’s fixed delay compensation did not apply to this project failure attributable to both parties. Litigation costs and the general lump-sum mental-harassment award were also distinct from its per-area monthly compensation. (¶¶ 9, 10, 10.1, 10.2, 10.3)
- The final arbitral allocation of 70% to the developer and 30% to the Board governed their inter se liability and corresponded to their receipt of sale proceeds. The revocation deed accepted the award and could not defeat the purchaser’s rights under the tripartite agreement. (¶¶ 11, 12, 13)
- The National Commission’s discretionary enhancement of interest to 10% did not warrant interference. As the Board had paid its principal share with 9% interest, it owed the additional 1% on that share and 30% of the Rs.2 lakh compensation-and-cost award. (¶¶ 14, 15)
Result
Appeal dismissed. The refund of Rs.1,03,31,250 with 10% interest from deposit until realisation and Rs.2 lakh for harassment and costs remained apportioned 70:30 between developer and Board. The Board must pay its remaining Rs.60,000 and additional 1% annual interest on its principal share within eight weeks.