High Court Kerala High Court

S.James Vincent vs The Greator Cochin Development … on 15 July, 2009

Kerala High Court
S.James Vincent vs The Greator Cochin Development … on 15 July, 2009
       

  

  

 
 
  IN THE HIGH COURT OF KERALA AT ERNAKULAM

WP(C).No. 11955 of 2006(W)


1. S.JAMES VINCENT, ADVOCATE C-21,
                      ...  Petitioner

                        Vs



1. THE GREATOR COCHIN DEVELOPMENT AUTHORITY
                       ...       Respondent

                For Petitioner  :SRI.P.S.KRISHNA PILLAI

                For Respondent  :SRI.M.K.THANKAPPAN,SC,GCDA

The Hon'ble MR. Justice C.N.RAMACHANDRAN NAIR

 Dated :15/07/2009

 O R D E R
                  C.N. RAMACHANDRAN NAIR, J.
                  --------------------------------------------
                       W.P.C. NO. 11955 OF 2006
                  --------------------------------------------
                  Dated this the 15th day of July, 2009

                                JUDGMENT

Writ Petition is filed challenging Exts. P15, P15(a) and P17

whereunder the GCDA has given credit for the payments made by the

petitioner for the building allotted to him and demanding balance Rs.

1,84,206/- together with future interest. When the WPC was filed,

according to the petitioner, there was only outstanding of Rs. 17,891/-

and the petitioner requested this Court to permit the petitioner to remit

the said amount. According to the respondent the balance outstanding

as on 16.3.2006 when Ext.P17 was issued was Rs. 1,84,206/-.

Petitioner is admittedly allottee of a building constructed and delivered

by the GCDA on down payment of Rs. 2 lakhs and on payment of

balance consideration in monthly instalment of Rs. 2943/-. The first

instalment was to be paid on expiry of 30 days from the date of giving

possession which was on 13.4.1987. Even though respondent has

disputed the date of possession as 9.4.1987, I do not think the same will

make much of a difference. In any case petitioner made payment of

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first instalment on 12.5.1987 and it should be taken as the due date for

payment of first instalment. However, it is seen from Ext.P15(a) issued

by GCDA that petitioner was not regular in payment of instalments, in

as much as there were months when no payment was made and in

certain months petitioner made payment of two instalments together.

The terms of allotment and agreement for sale produced in Court

clearly establish beyond doubt that petitioner was liable to pay

differential interest and penal interest for belated payment. Even

though petitioner paid 168 instalments of the balance consideration,

much of the payments got absorbed in interest in terms of sale

agreement. Petitioner’s contention to accept the payments as full

discharge of liability is in effect against the provision for interest which

GCDA rightly declined. Therefore petitioner’s claim that liability is

discharged cannot be accepted and I reject this contention. The balance

is only working out of the actual liability. Counsel for the GCDA

submitted that Government has waived penal interest of around Rs.

56,000/- and the balance is shown in Ext.P17. After hearing both sides,

I find that the dispute is only about the quantum of liability which is a

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matter of working out by an accountant and not by this Court. Terms

of agreement pertaining to rates of payment, default and interest

liability, are clear. If petitioner is not satisfied with GCDA account, it

is for the petitioner to engage a chartered accountant at his cost to

work out the liability along with accountant of the GCDA. I give an

opportunity to the petitioner to engage a chartered accountant at his

cost, who will work out the liability with the accountant of the GCDA

and I am sure there can be no surviving dispute in the working out of

the balance liability after giving credit in terms of the agreement. On

the other hand, if the petitioner wants to solve the problem once and

for all, I feel petitioner can be given an opportunity to pay the balance

without any liability for future interest from 16.3.2006 till date of

payment, provided petitioner pays balance amount of Rs.1,66,350/-

within a period of one month from today. If engaged by the petitioner,

Chartered Accountant will work out the interest liability after giving

credit for the payments made by the petitioner with reference to the

date on which payments were made in co-ordination with the

accountant of GCDA. Chartered Accountant is given one month’s time

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to work out the liability and produce it before the GCDA for them to

proceed to recover the amount so determined by him with GCDA.

However, if liability as on 16.3.2006 is not settled by making payment

as above, GCDA will be free to charge interest on the determined

amount till date of payment or recovery.

W.P.C. is disposed of as above.

(C.N. RAMACHANDRAN NAIR)
Judge
kk

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