IMPORTANT POINT
The jurisdiction of the NCDRC to award just compensation under the provisions of the Consumer Protection Act, 1986 cannot in the circumstances be constrained by the terms of the agreement.—Para 9

JUDGMENT

Dhananjaya Y. Chandrachud, J.

The National Consumer Disputes Redressal Commission (“NCDRC”) by its impugned order dated 8 June 2018 disposed of the consumercomplaint filed in a representative capacity under Section 12(1)(c) of the Consumer Protection Act, 1986. The NCDRC has come to the conclusion that though under the terms of the flat purchase agreement, possession was liable to be handed over to the buyers on 31 January 2014, there was a breach on the part of the developer in complying with its contractual obligations. The NCDRC has noticed that the occupation certificate was received only on 10 February 2016 and it was thereafter that from May 2016, certain letters offering possession were issued by the developer. Based on this, the NCDRC awarded compensation upto 31 July 2016 in the form of interest at the rate of 6 per cent per annum.

2. There is a finding in the impugned order that though the flat purchase agreement contained a stipulation for the payment of compensation at the rate of INR 3 per sq. ft. per month for delayed handing over of possession, the amount as stipulated is too meager to fulfil the requirement of just compensation to the purchasers. Accordingly, the following directions have been issued in the impugned order;

“(i) The OPs are directed to handover the possession to the complainants (if not already handed over) within a period of 60 days from the date of this order and the complainants are also directed to complete all the formalities for taking the possession.

(ii) The complainants are entitled to get compensation for delayed possession from 01.02.2014 till 31.07.2016 as per the agreement i.e. @ Rs. 3/- per sq. ft. per month. Over and above this amount, the opposite parties shall be liable to pay interest @ 6% p.a. from 01.02.2014 till 31.07.2016 on complainants deposited amounts with the CPs before the due date of possession i.e. 31.01.2014.

(iii) OPs are directed to complete the common facilities and amenities as per the agreement within a period of six months from the date of this order, failing which the OPs shall pay compensation @ Rs. 1,000/- per month to each of the complainants under the present complaint.

(iv) The OPs are also directed to pay Rs. 2,000/- (Rupees two thousand only) to each of the complainants towards cost of litigation in the present case.

(v) All these amounts except compensation for common facilities and amenities shall be adjusted against the amount due on the complainants, if any, at the time of handing over of the possession and if no amount is due on the complainants, then the amount shall be paid by the OPs to the complainants on the date of possession.”

3. Two sets of appeals have been filed against the order of the NCDRC. Civil Appeal No. 1232 of 2019 has been instituted by the flat purchasers while Civil Appeal Nos. 14431444 of 2019 is filed by the developer.

4. The flat purchasers are aggrieved by the order of the NCDRC since it grants interest only upto 31 July 2016 and not thereafter.

5. Mr. Bishwajit Bhattacharya, learned senior counsel appearing on behalf of the flat buyers has submitted that the NCDRC was in error in assuming that all flat buyers had been given letters of offer for possession prior to 31 July 2016 which it has been submitted, is factually incorrect.

6. Learned senior counsel submitted that as a matter of fact, possession has not been offered to all the purchasers even as on date and hence there was no justification on the part of the NCDRC to fasten the liability to pay interest only upto 31 July 2016 and not thereafter.

7. On the other hand, Mr. P.S. Narasimha, learned senior counsel appearing on behalf of the developer has submitted that in view of the conditions contained in the flat purchase agreement allowing compensation at the rate of Rs. 3 per sq. ft. per month, the award of interest of 6 per cent per annum was not justified.

8. We will at the outset deal with the submission of the developer that the NCDRC was not justified in awarding in