Latest news with #SadhnaShanker
Time of India
23-06-2025
- Business
- Time of India
‘Interest on refund is like compensation in consumer disputes'
New Delhi: The National Consumer Disputes Redressal Commission (NCDRC), while holding builders liable for deficiency in service, observed that in consumer cases, awarding interest along with a refund serves as a form of compensation. The commission's bench of Justice Sudip Ahluwalia and Sadhna Shanker was hearing an appeal filed by a builder against the orders of a state commission. The state commission had found the builder's service deficient and directed a refund of Rs 34,27,747 with 12% interest, Rs 1 lakh as compensation, and Rs 11,000 as litigation costs to the complainant. On June 16, NCDRC modified the state commission's order based on legal precedents. It set aside the Rs 1 lakh compensation but increased the litigation costs from Rs 11,000 to Rs 40,000. In 2011, the complainants booked a flat in a project by Barnala Builders on the Chandigarh-Ambala Highway after seeing advertisements that claimed it was fully developed and clear of legal issues. They paid a large portion of the price, but the builder did not provide the buyer's agreement at first. Later, the builder gave them an agreement with many unexpected and unfair terms. The complainants also received several arbitrary service tax demands without a proper explanation. Despite paying over Rs 34 lakh, they were only given a paper possession letter, while actual development, utility connections, and statutory certificates were still missing. They asked for a refund, but the builder only threatened forfeiture. They filed a complaint before the state commission of Punjab in 2014. The commission in 2016 held that the builder had been deficient in service and ordered a refund of Rs 34,27,747 with 12% interest, Rs 1 lakh compensation, and Rs 11,000 as litigation costs. Aggrieved, the builder filed an appeal before the National Commission. The national commission reaffirmed that in consumer cases, giving interest and a refund is a kind of compensation.
New Indian Express
27-04-2025
- Business
- New Indian Express
Cooperative bank in Thrissur told to pay customers who lost pledged gold in burglary
THIRUVANANTHAPURAM: The National Consumer Disputes Redressal Commission (NCDRC) has directed Thrissur-based Manaloor Service Cooperative Bank to compensate 15 gold loan customers who lost their pledged gold in a burglary at the bank. The order came on an appeal petition filed by the cooperative bank against the state commission's order. The burglary happened at the bank in May 2006. The customers had secured favourable verdicts from the Thrissur district commission and the state commission. The state commission had directed the bank to provide the market value of the gold as on the date of payment after deducting the loan amount and interest. Also, it asked the bank to settle the loans as on the date of filing of complaints before the district commission without charging any interest after that date. The bank argued before the national commission that the complaint was not maintainable in view of Section 69 of the Kerala Cooperative Societies Act. As per the Act and rules, the complaints are to be resolved through arbitration before the cooperative registrar. It challenged the state and district commissions' orders to pay market value of the gold. Since BIS certification was not mandatory at the time of the incident, there are chances that the gold would not be 916 carat. The bank further said that claims of 95% of customers were settled by paying the market price from the date of pledge to the date of theft. The case was heard by the NCDRC bench comprising its members Dr Inder Jit Singh and Dr Sadhna Shanker. Advocates Sreevaraham N G Mahesh and Sheeba Sadasivan represented the complainants. The national commission found that the bank lacked adequate security arrangements like security guards or CCTV cameras. It rejected the bank's contention of non-maintainability of the complaint stating that the provisions of the Consumer Protection Act are in addition to and not in derogation of the provisions of other laws. The argument on the purity of the gold was not valid as no bank would advance gold loans without checking purity and weight. The customers are entitled to get the market value of the gold on the date of payment, it said. The national panel, however, disagreed with the state commission's finding on interest payment. When the customer gets a refund on the date of refund, he is obligated to adjust this outstanding loan with interest till the date of adjustment. But the bank should charge interest only at the rate at which loan was granted and cannot charge any penalty, the order said.
