SUPREME COURT OF INDIA
Dhananjaya Y Chandrachud, Indu Malhotra, Indira Banerjee, JJ.
DLF Home Developers Ltd. (Earlier Known as DLF Universal Ltd) and Another - Appellants
Versus
Capital Greens Flat Buyers Association Etc. Etc. - Respondents
Civil Appeal Nos 3864-3889 of 2020
Decided on : 14-12-2020
Appeal - National Consumer Disputes Redressal Commission - Compensation for delay - Appeals arise from a judgment of National Consumer Disputes Redressal Commission in a batch of consumer complaints - Complaints were instituted inter alia by an association representing flat purchasers, called Capital Greens Flat Buyers Association and by individual flat purchasers against appellant. gist of grievance was that there was a substantial delay on part of developer in handing over possession of apartments which were contracted to be sold - Complainants also specifically challenged recovery of parking and club charges by developer - A claim for compensation for delay in handing over possession of flats was made - Whether and, if so to what extent, compensation for delay should be awarded – Held, It is true that in present case, contractual rate of Rs 10 per square foot per month is double rate fixed in agreements in above case - On other hand, court must be conscious of fact that situation in real estate market in Delhi is very distinct from that both in terms of rentals and land values - This has not been disputed -Flat buyers had to suffer on account of a substantial delay on part of appellants - In such a situation, they cannot be constrained to compensation of Rs 10 per square foot provided by agreements for flat purchase - However, having regard to all facts and circumstances, Court are of view that compensation on account of delay should be brought down from 7% to 6% - Moreover, amount, if any, which has been paid in terms of contractual rate shall be adjusted while computing balance due and payable in terms of judgment – Appeal allowed in part.
ORDER :
1. These appeals arise from a judgment of the National Consumer Disputes Redressal Commission dated 3 January 2020 in a batch of consumer complaints. The complaints were instituted inter alia by an association representing flat purchasers, called the Capital Greens Flat Buyers Association and by individual flat purchasers against the appellant. The gist of the grievance was that there was a substantial delay on the part of the developer in handing over possession of the apartments which were contracted to be sold. The complainants also specifically challenged the recovery of parking and club charges by the developer. A claim for compensation for delay in handing over possession of the flats was made.
2. The appellants in their defence to the complaints inter alia contended that as a result of force majeure conditions, they were prevented from achieving timely completion of their contractual obligations. The circumstances which according to the appellants triggered the force majeure clause of the agreements with flat buyers were: (i) delay in the approval of building plans; and (ii) issuance of stop work orders as a result of fatal accidents during the
course of construction. The NCDRC has, after a detailed evaluation of the facts, rejected the force majeure defence.
3. While allowing the complaints, the NCDRC has issued the following directions in paragraph 37 of its impugned decision:
(i) The OP is entitled to the additional demand on account of increase in the super area of the apartments.
(ii) The OP is not entitled to car parking charges.
(iii) The OP is not entitled to club charges.
(iv) The allottees shall be entitled to early payment rebate and timely payment rebate, wherever they have complied with the terms on which the said rebates were offered by the developer or wherever the benefit of the said rebates was extended to them, either by the developer itself or by this Commission.
(v) The OP shall pay compensation in the form of simple interest @ 7% per annum from the expected date for delivery of possession till the date on which the possession was actually offered to the allottees. In case of subsequent purchasers, the period expected for the delivery of possession will be computed from the date of purchase by them. If the possession was delayed solely on account of the allottee having not executed the Indemnity-cum-Undertaking, prescribed by the OP, the compensation in the form of simple interest @ 7% per annum shall be payabie with effect from the expected date for delivery of possession till the date on which the consumer complaint by/on behalf of such an allottee was instituted. The compensation shall be paid within a period of three months from today.
(vi) The car parking charges and club charges wherever already paid to the developer shall be refunded to the concerned allottee within three months from today, failing which the said charges shall carry interest @ 9% per annum from the date of this order, till the date of refund.
(vii) The conveyance deed in favour of the allottees shall be executed within three months from today, subject to payment of outstanding dues, if any, payable by the allottees to the developer, in terms of this order and the requisite stamp duty and registration charges.
(viii) In CC/351/2015 and CC/2047/2016, the developer shall pay Rs.50,000/-as the cost of litigation in each complaint whereas in the other consumer complaints, the developer shall pay Rs.46,000/-as the cost of litigation in each.”
4. Mr Pinaki Misra, learned senior counsel appearing on behalf of the appellants submits that in view of the recent judgment of this Court in Wing Commander Arifur Rahman Khan and Aleya Sultana and Others vs. DLF Southern Homes Pvt. Ltd and Others [Civil Appeal No 6239/2019 decided on 24 August 2020], the direction for the refund of parking and club charges together with interest would have to be set a
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