TMI Blog2000 (5) TMI 963X X X X Extracts X X X X X X X X Extracts X X X X ..... udhir Kulshreshtha, Ms. Kamini Jaiswal, Prashant Bhushan, Arvind Singh, C.V. Subba Rao, B.K. Prasad, P. Parmeswaran, B.D. Sharma, Girish Chandra, Sanjay Parikh, Pravir Choudhary, D.K. Satija, S. Prasad, Praveen Swarup, B.R. Sabharwal, R.V. Upadhay, R. N. Keshwani, K.S. Sounder Rajan and Manjeet Chawla for the Appearing Parties. JUDGMENT Lahoti, J. Leave granted in SLP(C) No. 18897 of 1999. 2. In this batch of appeals, Ghaziabad Development Authority constituted under section 4 of the Uttar Pradesh Urban Planning and Development Act, 1973 is the appellant. The authority has from time to time promoted and advertised several schemes for allotment of developed plots for construction of apartments and/or flats for occupation by the allottees. Several persons who had subscribed to the schemes approached different forums complaining of failure or unreasonable delay in accomplishing the schemes. Some have filed complaints before the Monopolies and Restrictive Trade Practices Commission (MRTP Commission) and some have raised disputes before the Consumer Disputes Redressal Forum. In two cases civil writ petitions under article 226 of the Constitution were filed before the Hi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d cost of which plot was Rs. 4,20,000 payable in specified instalments. An allotment of plot was also informed. Then at one point of time the claimants were informed that due to some unavoidable reasons and the development work not having been completed there has been delay in handing over possession. Having waited for an unreasonable length of time the claimants approached the MRTP Commission. 5. When a development authority announces a scheme for allotment of plots, the brochure issued by it for public information is an invitation to offer. Several members of public may make application for availing benefit of the scheme. Such application are offers. Some of the offers having been accepted subject to rules of priority or preference laid down by the authority result into a contract between the applicant and the authority. The legal relationship governing the performance and consequences flowing from breach would be worked out under the provisions of the Contract Act, 1872 and the Specific Relief Act, 1963 except to the extent governed by the law applicable to the Authority floating the scheme. In case of breach of contract damages may be claimed by one party from the other who ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 26.045). 7. In our opinion, compensation for mental agony could not have been awarded as has been done by the MRTP Commission. 8. However, the learned counsel for the respondents has invited our attention to Lucknow Development Authority v. M.K. Gupta [1994] 1 SCC 243 wherein this court has upheld the award by the Commission of a compensation of Rs. 10,000 for mental harassment. The basis for such award is to be found in paras 10 and 11 wherein this court has stated inter alia - "Where it is found that exercise of discretion was mala fide and the complainant is entitled to compensation for mental and physical harassment then the officer can no more claim to be under protective cover. When the citizen seeks to recover compensation from a public authority in respect of injuries suffered by him for capricious exercise of power and the National Commission finds it duly proved then it has a statutory obligation to award the same". The court has further directed the responsibility for the wrong done to the citizen to be fixed on the officer who were responsible for causing harassment and agony to the claimants and then recover the amount of compensation from the salary o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppropriately under the circumstances of each case. Interest may also be awarded in lieu of compensation or damages in appropriate cases. The interest can also be awarded on equitable grounds. . . . ****** The State Commission as well as the National Commission were, therefore, justified in awarding the interest to the appellant but in the circumstances of the case we feel that grant of interest at the rate of 12 per cent was inadequate as admittedly the appellant was deprived of the user of a sum of Rs. one lakh for over a period of seven years. During the aforesaid period, the appellant had to suffer the winding up proceedings under the Companies Act, allegedly on the ground of financial crunch. We are of the opinion that awarding interest at the rate of 15 per cent per annum would have served the ends of justice." (p. 409) 10. We are, therefore, of the opinion that interest on equitable grounds can be awarded in appropriate cases. In Sovintorg (India) Ltd. s case ( supra ) the rate of 15 per cent per annum was considered adequate to serve the ends of justice. The court was apparently influenced by the fact that the claimant had to suffer winding up proceedings under t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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