Authority: Supreme Court of India, Civil Appellate Jurisdiction

Order Date: 15 October 2026

Case Overview

  • Parties: Bankey Bihari Social Welfare Society (appellant) vs. Delhi Development Authority (respondent) and others.
  • Background: DDA allotted a plot (PSP‑1, Plot No. 15, Sector 22, Rohini, Delhi) of 3000 sq m on 26‑03‑2012. The actual area handed over was 2940 sq m, a shortfall of 60 sq m (less than 2%). DDA refunded Rs 34,58,000 on 11‑11‑2019 to compensate for the size deficiency.
  • NCDRC Proceedings: The appellant filed a consumer complaint alleging deficiency of service. The National Consumer Disputes Redressal Commission (NCDRC) judgment dated 13‑03‑2023 partially allowed the complaint and directed: (i) Refund of Rs 34,58,000 with interest at 12% per annum from the date of deposit of bid amount until realization, payable within six weeks; interest rate to rise to 15% if delayed. (ii) Execution of lease deed within six weeks. (iii) Grant of NOC for construction and extension of construction completion period. (iv) Payment of Rs 1,00,000 towards litigation costs within four weeks.
  • Review: The appellant sought a review of the NCDRC order; the review was dismissed on 21‑04‑2023.
  • Ground Rent Issue: Counsel for the appellant, Mr. Venkita Subramoniam, argued that DDA’s demand for ground rent was unjustified and should be governed by DDA rules, but the Supreme Court observed that ground rent was neither raised nor considered by the NCDRC and therefore did not examine it, leaving the appellant free to challenge any such demand in appropriate proceedings.
  • DDA’s Counter‑Appeal (Civil Appeals Nos. 6857‑6858/2026): DDA contended that under Clause 2E of the scheme, the refund amount is permissible and that interest should not be payable. The scheme allows up to 5% variation in plot area with proportional cost adjustment. DDA argued that the NCDRC’s direction to pay 12% interest was illegal.
  • Supreme Court’s Modification: While agreeing that the refund falls under Clause 2E, the Court modified the interest rate from 12% to 6% per annum to balance equities, stating the order is confined to the facts and not a precedent.

Final Outcome

  • Both sets of civil appeals (5797‑5798/2023 and 6857‑6858/2026) are disposed of.
  • The interest on the refunded amount of Rs 34,58,000 is fixed at 6% per annum instead of the 12% originally directed by the NCDRC.
  • The directions to execute the lease deed, grant the NOC, and pay Rs 1,00,000 litigation costs remain in force.
  • No opinion was expressed on ground rent; the appellant may pursue any remedy if such a demand arises.
  • The order is limited to the present case and shall not be treated as precedent.
  • All pending applications, if any, are also disposed of.

Topics: Land Allocation, Consumer Protection