N.V.RAMANA, S.ABDUL NAZEER
Fortune Infrastructure (Now Known As M/s. Hicon Infrastructure) – Appellant
Versus
Trevor D’lima – Respondent
Key Points: - (!) The NCDRC held there was deficiency in service for transferring the project to a third party instead of delivering to the complainants. - (!) Appellants failed to justify the transfer of property to a third party despite contractual obligation to the respondents. - (!) There is deficiency of service; questions of quantum of compensation to be determined. - (!) Damages under the Consumer Protection Act for commercial contracts must be determined as per Indian Contract Act. - (!) General principle: compensatory damages to place the injured party in the position as if contract had been performed. - (!) Compensation can vary based on loss/injury; no uniform 18% rule; factors include possession delay, harassment, and price escalation. - (!) Distinction between possession-and-refund cases; compensation may reflect loss and possible value increase; not uniform. - (!) Appellate court fixes market rate Rs. 50,000 per sq ft to determine market value; calculated damages accordingly. - (!) Appellants to refund Rs. 1,87,00,000 and pay Rs. 2,27,20,000 as compensation plus Rs. 20,00,000 for parking and Rs. 10,000 costs; payment within six weeks with 9% interest if default. - (!) Review/notice deposit adjustments: Rs. 2,50,00,000 deposited earlier to be adjusted against liability.
JUDGMENT :
N.V. Ramana, J.
These appeals are filed against the impugned orders, dated 08.09.2016 and 03.11.2016, passed by the National Consumer Disputes Redressal Commission [hereinafter ‘NCDRC’ for brevity], in Consumer Complaint No. 636 of 2015 and Review Application No. 273 of 2016 in the Consumer Complaint No. 636 of 2015.
2. A few facts which are necessary for the disposal of this matter are that the appellants, in the year 2011, launched a residential housing project by name ‘Hicons Onyx’, renamed as Fortune Residency, which was a re-development of Mohammadi House. The respondents booked a flat bearing no. 202, 2nd Floor in ‘A’ wing, admeasuring 828.40 Sq. Ft. with one unit of parking-space. The total consideration for the flat was Rs. 1,93,00,000/-. It is alleged by the appellants, that due to increase in the cost beyond what was expected, they transferred the project to another company being M/s. Zoy Shelcon Pvt. Ltd. It is to be noted that the respondents have paid a sale consideration of Rs. 1,87,00,000/-.
3. In 2015, aggrieved by the fact that appellants were not willing to deliver the flat to them, the respondents approached NCDRC through a consumer complaint, being CC No.
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