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2023 Supreme(SC) 102

SUPREME COURT OF INDIA
S. Ravindra Bhat, Dipankar Datta, JJ.
Debashis Sinha & Ors. - Appellants
Versus
M/s R.N.R. Enterprise Rep. By Its Proprietor/Chairman, Kolkata & Ors. - Respondents
Civil Appeal No.3343 of 2020
Decided On : 09-02-2023

Advocates appeared:
For the Appellant(s) : Mr. Arvind Kr. Sharma, Adv. Mr. Aniteja Sharma, Adv. Mr. Avijit Singh, Adv. Mr. Raj Kishor Choudhary, AOR
For the Respondent(s): Mr. Vipin Kumar Jai, AOR

IMPORTANT POINT
Flat-Buyer’s Agreement – Deficiency in service – It is duty of NCDRC to set things right.

Headnote:

Consumer Protection Act, 1986 – Section 23[Consumer Protection Act, 2019 – Section 67] – Kolkata Municipal Corporation Act, 1980 – Sections 403, 390 and 394 – Calcutta Municipal Corporation Buildings Rules, 1990 – Rule 26 – Real estate – Flat-Buyer’s Agreement – Deficiency in service – Once a flat is booked and prospective flat owner enters into agreement for loan, instalments fall due to be paid to clear debt irrespective of whether flat is ready for being delivered possession – Once NCDRC arrived at a finding that respondents were casual in their approach and had even resorted to unfair trade practice, it was its obligation to consider appellants’ grievance objectively and upon application of mind and thereafter give its reasoned decision – However, there is no such clear-cut description of facilities/amenities which respondents asserted would be provided on payment of extra money by appellants – NCDRC would have done well to indicate the same with clarity – It was duty of NCDRC to set things right – Respondents have been let off by NCDRC in a manner contrary to law – Matter remanded to NCDRC only with a view to secure adherence to promises that respondents had made in brochure and/or advertisement, and thereby cover up deficiency in service as well as mandatory statutory provisions. (Paras 12, 13, 14, 19, 20 and 21)

Facts of the case:

Instant appeal under section 23 of the Consumer Protection Act, 1986 calls in question the order dated 21st August, 2020 passed by National Consumer Disputes Redressal Commission, New Delhi. By impugned order, NCDRC has dismissed the consumer complaint lodged by appellants.

Findings of Court:

Since the complaint is more than 15 (fifteen) years old, it would be desirable if the NCDRC decides the same as early as possible and preferably within a year of service of an authenticated copy of this order.

Result : Appeal disposed of with observations.

ORDER :

1. This appeal under section 23 of the Consumer Protection Act, 1986 (hereafter ‘the C.P. Act’, for short) calls in question the order dated 21st August, 2020 passed by the National Consumer Disputes Redressal Commission, New Delhi, (hereafter ‘NCDRC’, for short). By the impugned order, the NCDRC has dismissed the consumer complaint lodged by the appellants.

2. The multiple appellants are owners of flats in different blocks of a housing complex at 1, Kailash Ghosh Road, Kolkata – 700008 (hereafter ‘housing complex’, for short).

3. Aggrieved by the failure of the respondents -the developers of the housing complex -to provide services as promised, the jurisdiction of the NCRDC was invoked by the appellants in 2008. They alleged that despite paying full consideration amount as per market rate and despite execution and registration of deeds of conveyance in their favour, the respondents had failed, interalia, to provide the ‘Completion Certificate’, which is their statutory obligation as per the rules of the Kolkata Municipal Corporation (hereafter ‘KMC’, for short); and, in the absence of such a certificate, their occupation of the respective flats has been rendered precarious. According to the appellants, the respondents also failed to provide them common amenities and facilities viz., playground, community hall-cum-office room, 33-feet wide concrete road, and supply of water from the KMC. It was their further complaint that the respondents had adopted unfair trade practices by promising a playground on a land which actually belonged to a local club as well as attracted buyers by showing in the brochure/ advertisement a ‘beautified lake’, which never came into existence. Also, finding that there were constructional defects, a valuer from the list of approved valuers maintained by the Calcutta High Court had been engaged by the appellants. The report of such valuer revealed constructional defects of the nature delineated therein. Based on the complaint that was lodged before the NCDRC, the appellants sought direction to the respondents to provide the completion certificate of the project and to set right the constructional defects as pointed out by the valuer. Further, they claimed that direction be issued for providing other facilities such as community hall, landscape gardening, generator, multi-gymnasium, water filtration plant, and gas pipeline. Additionally, compensation of Rs.1,80,00,000/-(Rupees one crore eighty lakh only) together with litigation cost of Rs.50,000/-(Rupees fifty thousand only) was claimed.

4. The complaint lodged by the appellants was contested by the respondents by filing a written statement. Apart from objecting to the maintainability of the complaint on the grounds that the same was time barred and that a joint complaint could not have been lodged by 36 (thirty-six) flat owners, it was contended that the appellants have not paid the full consideration amounts, that certain common facilities/amenities could be provided only if all the members of the housing complex contribute for the same and that the compensation claimed was vague and imaginary. It was also contended in the written statement that most of the appellants had taken possession of the flats in 2006 without raising any objection at the material time; hence, lodging of a complaint after 2 (two) years of possession being delivered is motivated. Insofar as the issue of obtaining the completion certificate is concerned, it was contended that the flats having already stood transferred to the appellants by way of conveyance/sale deed(s), it was for the appellants to apply before the KMC for obtaining such certificate. The respondents also contended that since KMC had completed assessment of the flats of the appellants, it was not possible for the respondents to now apply and obtain completion certificate for the flats.

5. Considering the pleadings before it as well as upon hearing the parties, the NCDRC returned findings that the respondents h


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