IMPORTANT POINT
Power of MRTP Commission to award compensation is restricted to a case where loss or damage had been caused as a result of monopolistic or restrictive or unfair trade practice.

Judgment

S.B. SINHA, J. - Leave granted in the SLPs.

2. E,xtent of jurisdiction of the Monopolies and Restrictive Trade Practices Commission (for short "the Commission") is the question involved in these appeals, although they arose under different fact situations.

3. We would notice the facts involved in both the appeals separately.

4. In civil appeal arising out of SLP (C) No. 26795 of 2004, Sunil Gulati, the respondent herein entered into an agreement with Respondent 1 (DLF) b for purchasing a flat in a building known as Windsor Court, DLF City, Gurgaon and made payment of a sum equivalent to 10% of the agreed price as earnest money at the first instance. The balance payment was to be made in instalments. Clause 17 of the agreement entitled the allottee to cancel the allotment at any time and take refund of the amount paid by him without interest, but the earnest money was liable to be forfeited in the following c terms:

"17. In case the allotment is got cancelled by the allottee himself, he shall be entitled to the refund of the amount paid by him, after deducting the earnest money, but without payment of any interest on the balance amount, paid by him."

Clause 8 of the said agreement reads as under:

"8. That the time of payment of instalments as stated in schedule of payments (Annexure II) and applicable stamp duty, registration fee, maintenance charges and other charges payable under this agreement as and when demanded is the essence of this agreement. It shall be incumbent on the apartment allottee to comply with the terms of payment and/or other terms and conditions of sale, failing which he shall forfeit to the Company the entire amount of earnest money and the agreement of sale shall stand cancelled and the apartment allottee shall have no right, title, interest or claim of whatsoever nature on the said premises. The Company shall thereafter be free to resell and deal with the said premises in any manner, whatsoever, at its sole discretion. The amount(s), if any, paid over and above the earnest money shall however be refunded to the apartment allottee by the Company without any interest or any compensation of whatsoever nature."

5. The respondent paid some instalments but allegedly was unable to pay the same from the month of June 1996. One of his cheques bounced which fact was intimated to him by the appellant by a letter dated 7 - 1 - 1998.

6. He entered into an apartment buyers agreement on 8 - 4 - 1996. At his request a 2Y:z - year payment plan was converted into a 7 - year payment plan in May 1996. The respondent did not pay the instalments in due time wherefor allegedly reminders were sent.

7. A demand letter was also sent to him. The respondent on or about 3 - 8 - 1998 showed his inability to make any payment and informed the appellant that he was in desperate need of funds so as to enable him to make a new beginning in India and requested the appellant to promptly make payment of the amount with interest at the rate of 24% per annum. A reminder was sent by him on 10 - 9 - 1998. On 3 - 11 - 1998, he suggested that he may be allotted some other smaller property. The said letter reads as under:

"The Chairman .

DLF Universal Limited New Delhi

Dear Sir,

Re: SO 8 - B, Windsor Court

I am writing this letter with the hope that due regard and consideration will be extended to me by your goodselves.

I was working in Bangkok and due to the Asian fallout I have lost my job and I am back home trying to settle my family and myself. I have been paying my instalments against the abovestated property, but now due to my present circumstances, I will not be able to pay any further instalments. Till date I have already paid a sum of Rs 24,96,685 towards the said property.

Since I do not have a house, my immediate need is to settle down my family. I have been talking to your sales people and they have suggested to me to look for some other smaller property where I could swap the amount paid against the new property. On getting a