SUPREME COURT OF INDIA
(From the National Consumers Disputes Redressal Commission, New Delhi)
UDAY UMESH LALIT, PAMIDIGHANTAM SRI NARASIMHA, S. RAVINDRA BHAT, JJ.
Experion Developers Pvt. Ltd. – Appellant
Versus
Sushma Ashok Shiroor – Respondent
Civil Appeal Nos. 6044, 7149 of 2019
Decided On : 07-04-2022
(A) Real Estate (Regulation and Development) Act, 2016 – Section 18 – Consumer Protection Act, 1986 – Section 3{Consumer Protection Act, 2019 – Section 100} – Concurrent remedies – Consumer Protection Act and RERA Act neither exclude nor contradict each other – They are concurrent remedies operating independently and without primacy – When Statutes provisioning judicial remedies fall for construction, choice of interpretative outcomes should also depend on constitutional duty to create effective judicial remedies in furtherance of access to justice – A meaningful interpretation that effectuates access to justice is a constitutional imperative and it is this duty that must inform interpretative criterion – When Statutes provide more than one judicial Fora for effectuating a right or to enforce a duty-obligation, it is a feature of remedial choices offered by State for an effective access to justice – While interpreting statutes provisioning plurality of remedies, it is necessary for Courts to harmonise provisions in a constructive manner. (Paras 14.1 and 14.2)
(B) Consumer Protection Act, 1986 – Sections 14 and 23 {Consumer Protection Act, 2019 – Section 67} – Real Estate (Regulation and Development) Act, 2016 – Section 18 – Apartment Buyers Agreement – Unjustifiable delay in delivering apartment – Direction by National Consumer Disputes Redressal Commission for refund of amount with interest – Commission is correct in its approach in holding that clauses of agreement are one-sided and that Consumer is not bound to accept possession of apartment and can seek refund of amount deposited by her with interest – Power to direct refund of amount and to compensate a consumer for deficiency in not delivering apartment as per terms of Agreement is within jurisdiction of Consumer Courts – Commission is empowered to direct refund of price or charges paid by consumer – A consumer invoking jurisdiction of Commission can seek such reliefs as he/she considers appropriate – A consumer can pray for refund of money with interest and compensation – Consumer could also ask for possession of apartment with compensation – Consumer can also make prayer for both in alternative – If a consumer prays for refund of amount, without an alternative prayer, Commission will recognize such a right and grant it, subject to merits of case – If a consumer seeks alternative reliefs, Commission will consider the matter in facts and circumstances of case and will pass appropriate orders as justice demands – Freedom to choose necessary relief is of Consumer and it is duty of Courts to honour it – Consumer in present case prayed for solitary relief for return of amount paid towards purchase of apartment without a prayer for alternate relief – Commission has correctly exercises its power and jurisdiction in passing directions for refund of amount with interest. (Paras 10, 15, 16, 17, 18 and 19)
(C) Civil Procedure Code, 1908 – Section 144 – Consumer Protection Act, 1986 – Section 23 {Consumer Protection Act, 2019 – Section 67} – Apartment Buyers Agreement – Unjustifiable delay in delivering apartment – Direction by National Consumer Disputes Redressal Commission for refund of amount with interest – For interest payable on amount deposited to be restitutionary and also compensatory, interest has to be paid from date of deposit of amounts – Commission in order impugned has granted interest from date of last deposit – This does not amount to restitution – Interest on refund shall be payable from dates of deposit – 9% interest granted by Commission is fair and just and no reason to interfere in appeal filed by Consumer for enhancement of interest. (Paras 22.1 and 22.2)
Facts of the case:
Present appeals under Section 23 of the Consumer Protection Act, 1986, arise out of judgment dated 19.06.2019 passed by National Consumer Disputes Redressal Commission. The Commission directed the Appellant- Developer to refund an amount of Rs. 2,06,41,379 with interest @ 9% p.a. to Respondent-Consumer for its failure to deliver possession of apartment within the time stipulated as per the Apartment Buyers Agreement.
Findings of Court:
Appellant-Developer deposited a sum of Rs. 50,000/- in the registry of this Court as per proviso to Section 23 of the Act. This amount shall be made over to the Respondent-Consumer, to be adjusted against final amount payable by the Developer to the Consumer.
Result : Civil Appeal filed by Appellant Developer dismissed and Civil Appeal filed by Consumer allowed in part.
JUDGMENT :
PAMIDIGHANTAM SRI NARASIMHA, J.
1. These appeals under Section 23 of the Consumer Protection Act, 19861 [hereinafter referred to as the “Act”] arise out of the judgment dated 19.06.2019 passed by the National Consumer Disputes Redressal Commission2 [hereinafter referred to as “Commission”]. The Commission directed the Appellant-Developer to refund an amount of Rs. 2,06,41,379 with interest @ 9% p.a. to the Respondent- Consumer3 [hereinafter referred to as the “Consumer”] for its failure to deliver possession of the apartment within the time stipulated as per the Apartment Buyers Agreement. In these appeals, we have upheld the Commission’s order insofar as it directed the Developer to refund the amounts paid by the Consumer with interest for the unjustifiable delay in delivering the apartment. On law, we have considered the interplay between the judicial remedies under the Act and the Real Estate (Regulation and Development) Act, 2016 and have explained the remedial choices of a consumer under these statutes. We have held that the Commission created under the Act has the power to direct refund under Section 14 of the Act. We conclude that the Act and the RERA Act neither exclude nor contradict each other and they must be read harmoniously to sub-serve their common purpose.
2. The brief facts of the case are that the Developer, M/s Experion Developers Private Ltd. is the promoter of apartment units, Windchants, in Sector 112, Gurgaon, Haryana. The Consumer booked an apartment measuring 3525 sq. ft. for a total consideration of Rs. 2,36,15,726/- in the Windchants and agreed for construction linked payment plan, which led to the execution of the Apartment Buyer’s Agreement dated 26.12.2012. As per Clause 10.1 of the Agreement, possession was to be given within 42 months from the date of approval of the building plan or the date of receipt of the approval of the Ministry of Environment and Forests, Government of India for the Project or date of the execution of the agreement whichever is later. Clause 13 of the Agreement provided for Delay Compensation. Under this clause, if the Developer did not offer possession within the period stipulated in the Agreement, it shall pay liquidated damages of Rs. 7.50 per square foot per month till possession is offered to the Consumer.
3.1 The Consumer approached the National Disputes Redressal Commission by filing an original complaint being, Consumer Case No. 2648/2017, alleging that he has paid a total consideration of Rs. 2,06,41,379/- and possession was not granted even till the filing of the complaint. He, therefore, sought a refund of Rs. 2,06,41,379/- along with interest @ 24% p.a.
3.2 The Developer filed its Written Statement before the Commission stating that though the 42 months period expires on 26.6.20164 [The Commission in impugned order has recorded the statement of the Developer in the reply dated 16.02.2018 raising preliminary objections where it admitted that the “The trigger date for clause 10.1 is 26.12.2012 which is the date of execution of the apartment buyer’s agreement.”] the purchaser will only be entitled to delay compensation under Clause 13, for a sum of Rs. 4,54,052/-. Justification for the delay is given by pleading that the Occupation Certificate for Phase-I of the project had already been obtained on 06.12.2017 and application for Occupation Certificate for Phase-2, had already been made. In the affidavit of evidence, the Developer contended that it secured the Occupation Certificate on 23.07.2018 and a notice of possession was issued to the Consumer on 24.07.2018. It was claimed that since possession can be handed over, the complaint must be dismissed.
4. The Commission, in its judgment dated 19.06.2019, allowed the complaint after referring to Clause 10 (relating to the project completion period), Clause 11 (relating to the possession and conveyance of t
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