Lok Adalat tells GLADA to pay interest on delayed refund

Our Legal Correspondent

Ludhiana, January 24

The Permanent Lok Adalat (PLA) has directed the GLADA to pay 5.5 per cent interest on delayed refund of earnest money to an aggrieved person.

Pronouncing the verdict, PLA chairman Sunil Arora, its members Amarjit Singh Sekhon and Rajwinder Kaur directed the GLADA to make the payment within two months, along with 5.5 per cent per annum interest from 91st day of closure of the scheme till the date of actual refund of the earnest money to the applicant.

The orders were pronounced by the PLA while deciding the application moved by Sukhwinder Singh of Kidwai Nagar, Ludhiana.

The complainant had submitted that in 2015, the GLADA had floated a scheme to allot plots in Sector 38, Samrala Road, and Dugri.

The applicant applied for one plot measuring 250 square yards in Sector 38 by depositing Rs 5 lakh as earnest money after taking loan from Oriental Bank of Commerce.

The said scheme was to close on January 4, 2016, and the draw was to be held on March 15, 2016.

The GLADA had promised that the earnest money would be refunded to the unsuccessful applicants within 90 days from the closure of the scheme.

However, in violation of rules and regulations, the GLADA held draw of lots on February 15, 2016, one month prior to the date given in the advertisement.

The applicant was unsuccessful but the refund was not made within 90 days as promised.

The earnest money was refunded after a long period and due to which the applicant had to pay Rs 19,419 to the bank as interest.

However, GLADA authorities refuted the allegations levelled by applicant Sukhwinder Singh.

It was pleaded by them that there was no fault on their part. Some persons had filed writ petitions before the Punjab and Haryana High Court seeking issuance of directions to re-conduct the draw of lots.

The said writ petitions were disposed of on August 24, 2017. Due to this reason, the refund of unsuccessful applicants could not be made in time, they said.

It was only after the decision of the High Court that the proceedings to refund the amount of unsuccessful applicants were initiated, they added.

But after appreciating the documents and evidence brought by both parties, the Permanent Lok Adalat held that there was no fault of the applicant so he should not be burdened with the interest amount, which he had paid to the bank.

Thereafter, the Permanent Lok Adalat ordered the GLADA authorities to make the payment of interest on delayed refund of earnest money.