ORDER
Manmohan Sarin, J.
1. Rule.
With the consent of the parties writ petition is taken up for disposal.
2. Petitioner is the Residents Welfare Association, of the residents of the Self Financing Scheme Flats, Section-18, Rohini, Delhi. Members of the petitioner’s Association had applied for allotment of DDA flats under the Self Financing Scheme of April 1991.
2. Petitioners seek a writ of mandamus directing the respondent/DDA to pay the members of the petitioner’s association interest at the rate specified i.e. 7% and 10%, as applicable in Clause-4 of the terms and conditions of the Self Financing Scheme. The prayer is for payment of interest form the date the said interest became due up to the issuance of the 5th and final demand letter by the respondent/DDA. Claim for interest @24% per annum on the aforesaid amount due is also included.
3. The claim in the writ petition is based on Clause-IV of the terms and conditions of the Self Financing Scheme. Clause-IV reads as under:
“The estimated cost of the flat as given in this letter is provisional and is subject to revision on the completion of the flat. Any price difference between the estimated cost and the cost as it works out on completion as per costing formula in vogue, would have to be paid Along with the fifth and final Installment. No definite time by which the construction of the flats will be completed can be indicated at this stage.
Normally it takes 21/2 years period for completion of the project. Sometimes, due to unforeseeable reasons completion of project may get delayed. For delay beyond 30th month up to 36th month till the issue of demand letter for fifth and final Installment the allottee shall be paid interest @ 7% per annum and beyond 36th month interest will be paid 10% on her/her deposit.
The specific flat number will be allotted though draw of lots. The date and time for the draw will be announced through the leading newspapers. The demand letters for fifth and final Installment indicating the number of flat allotted, the mount payable, document to be furnished and formalities to be completed for taking over the possession will be sent by RAD post to the allottee a the address on record with the DDA within one month form the date of draw of letter for allotment of specific flat number. Failure to furnish all the requisite documents within a period of 120 days form the date of issue of the demand letter for fifth and final Installment will result in automatic cancellation of the allotment.”
4. As per the schedule indicated, the petitioner were required to make payment of the Installments on 6 monthly duration commencing form 15th July, 1992 and the 4th Installment ending on 30th December 1992. Estimation made at the time of the Self Financing Scheme of 1991, was that the flats would be got ready delivery of possession be made within 30 months i.e. 2 and a half year form the payment of the first Installment. The period of 30 months expired on 31.12.1993. Accordingly the members of the petitioners association or the applicants would be entitled to interest at the stipulated rate of Clause-IV, after 31.12.1993 up to the issuance of the final demand letter. Demand letter for the 5th and final Installment as per the petitioner were issued form May 1996 onwards and this went up to May 1997. Petitioner have given details in Annexure-P.4 of the dates on which the said letters were issued.
5. Respondent in the counter affidavit claims that he first set of demand letters was issued in August 1994, accordingly for the payment of interest for delayed construction, the respondent had adopted 31.8.1994 as the bulk date. Accordingly they have confined the payment of interest up to bulk dated i.e. up to 31.8.1994. Petitioners have disputed this assertion and on the other hand submitted as noted earlier that the demand letter for the 5th and final Installment was received much latter than August 1994. It was issued only form May 1996 onwards. The petitioner by way of illustrations have pointed out that one of the petitioner’s members received intimation vide a letter dated 30.5.1994 at page 24 notifying the allotment of a specific flat bearing No. 336 on the third floor. The letter-cum-demand for payment of 5th and final Installment was issued in this case on 18.7.1996 i.e. a period of more than 2 years of the first intimation. Possession was given by the end of 1996.
In these circumstance, petitioners claimed that the plea of bulk date being fixed on the basis when the first phase of letters are issued, loses its very basis and justification. Respondents cannot defeat the legitimate claim of the petitioners or its members for interest up to the date of issuance of 5th and final demand letter, occurring after undue delay of period of 2 to 3 years. Annexure-A produced at page 68 along with Annexure-P.4 gives the dates of the issuance of the 5th and final Installment letter which vindicates the stand taken by the petitioner. There is merit in the contention that since the 5th and final demand letter was issued after extended period of time and possession was also similarly delayed the very justification of fixing bulk date would disappear.
6. In these circumstances, an equitable resolution which commend to the court is as under. It is also consonance with the intent and spirit of Clause IV:-
(i) Payment of interest at stipulated rate up to 31.8.1994 in cases where the 5th and final demand letter was issued between 1.9.1994 to 31.8.1995; (ii) interest at the stipulated rate up to 31.8.1995 where the demand letter was issued between 1.9.1995 and 31.8.1996 and (iii) Interest at the stipulated rate up to 31.8.1996, where the demand letter was issued between 1.9.1996 to 31.8.1997.
7. The case had been adjourned on 13.3.2001 to enable the parties to seek instructions. Counsel for the parties after seeking instructions have given their consent to the aforesaid resolution as being acceptable.
8. Writ petition stands disposed of in above terms with no orders as to cost. Petitioners and its members would be entitled to interest on the above basis. Respondent to ensure payment of interest being made within 3 months from today.