IMPORTANT POINT
Bungalow Buyer’s Agreement – Direction for refund can be passed where agreement between parties has become difficult to be honoured.

JUDGMENT :

J.B. PARDIWALA, J.

1. The respondents, although served with the notice issued by this Court, yet have chosen not to remain present before this Court either in person or through an advocate and oppose this appeal.

2. This appeal is at the instance of the original complainant before the District Consumer Disputes Redressal Forum, Nagpur (for short ‘the District Forum’) and is directed against the judgment and order passed by the National Consumer Disputes Redressal Commission, New Delhi (for short, ‘the National Consumer Commission) dated 12th December, 2019 in the Revision Petition No. 1185 of 2015 by which the National Consumer Commission disposed of the Revision Petition filed by the appellant herein against the order passed by the District Forum, Nagpur.

FACTUAL MATRIX

3. The respondent no. 1 herein is the Original Complainant. He lodged a complaint under Section 12 of the Consumer Protection Act, 1986 before the District Forum at Nagpur which came to be registered as the Consumer Complaint No. 305 of 2008.

4. The case of the respondent no. 1 before the District Forum was that the complainant and the appellant herein entered into a contract in connection with the purchase of a Twin Bungalow admeasuring 900 sq. ft. of super built up area situated at the Plot No. 132 at Tahsil and District Nagpur.

5. It appears from the materials on record that the appellant herein is a developer. The complainant entered into an agreement dated 08.06.2006 with the appellant herein for the purchase of the bungalow in question for a total sale consideration of Rs. 9,74,000/- (Rupees Nine Lakh Seventy Four Thousand only).

6. The understanding between the parties was that the complainant would pay an amount of Rs. 4,23,520/- (Rupees Four Lakh Twenty Three Thousand Five Hundred Twenty only) in cash to the appellant herein and the balance amount of Rs. 5,50,520/- (Rupees Five Lakh Fifty Thousand Five Hundred Twenty only) would be paid to the appellant herein after the complainant would get the loan disbursed in his favour from the respondent no. 2, the bank herein.

7. It appears from the materials on record that the bank sanctioned the loan of Rs. 6,40,000/- (Rupees Six Lakh Forty Thousand only) in favour of the complainant on 24.11.2006 but the same never came to be actually disbursed in favour of the complainant.

8. In the aforesaid context, disputes cropped up between the parties. In such circumstances, the complainant thought fit to file a complaint before the District Forum at Nagpur. Before the District Forum, the appellant herein admitted that it had entered into an agreement with the complainant for sale of the house in question. The appellant also admitted that the total sale consideration as fixed was at Rs. 9,74,000/- (Rupees Nine Lakh Seventy Four Thousand only). However, the appellant herein disputed having received an amount of Rs. 4,23,520/- (Rupees Four Lakh Twenty Three Thousand Five Hundred Twenty only) from the complainant.

9. The stance of the bank before the District Forum was that the home loan of Rs. 6,40,000/- (Rupees Six Lakh Forty Thousand only) was sanctioned in favour of the complainant and his wife on 24.11.2006. The bank called upon the complainant and his wife to submit the necessary documents regarding the property. However, the relevant documents were not furnished and, in such circumstances, the loan amount could not be actually disbursed in favour of the complainant and his wife.

10. The complaint was ultimately adjudicated by the District Forum and the same came to be partly allowed in the following terms:

“1. The complaint of the Complainant is partly allowed.

2. The Non-application No. 1 is directed that he should complete the construction of the house (semidetached bungalow) having a built-up area of 900 Sq. ft. on Plot No. 132, P.H. No. 38, Khasra No. 39/1, 39/2 and 39/3 having total area of 2101 Sq. feet, in Ghogal Layout, as per the agreement and hand over its possession to the Complainant and execute a Sal