SUPREME COURT OF INDIA
S. Abdul Nazeer, J.K. Maheshwari, JJ.
Ravinder Singh Chana – Appellant
Versus
Khanna Properties And Infrastructures Pvt. Ltd. – Respondent
Civil Appeal No(C). 5793 of 2022; (Arising out of S.L.P.(C)No(s).8092 of 2022)
Decided On : 24-08-2022
Refund - Consumer Dispute - Not specified
Fact of the Case:
The State Commission directed the respondent to refund a sum of Rs.21,18,000 to the appellant with interest, but the National Commission partially reversed the order.
Finding of the Court:
The court found that the National Commission erred in partially reversing the order of the State Commission and set aside the impugned order, restoring the order of the State Commission.
Issues: Dispute over refund amount and interest, Error in National Commission's decision
Ratio Decidendi: The National Commission was in error in partially reversing the order of the State Commission.
Final Decision: The respondent is directed to pay/refund the amount in terms of the order of the State Commission within a period of two months from today, if already not paid/refunded. The civil appeal is disposed of accordingly.
ORDER
1. Leave granted.
2. By an order dated 15.10.2020, M.P. State Consumer Dispute Redressal Commission, Bhopal, (M.P.) (for short the State Commission) directed the respondent herein to refund a total sum of Rs.21,18,000/-(Rupees twenty-one lakhs eighteen thousand only) to the appellant with interest thereon within a period of two months. The operative portion of the order of the State Commission is as under:
"It is proved in the light of above investigation/observation and justice citations that even after receipt of an amount of Rs.21.18 Lakhs, within a fixed time period, which is generally presumed approximately two years, the construction of the flat has not been completed. Hence the complainant is entitled to receive the deposit amount back along with interest. Therefore this complaint case is allowed/accepted and respondent is directed to pay an amount of Rs.21.18 Lakh (Rs. Twenty One Lakh Eighteen Thousand only) within a period of two months and also to pay simple interest of 9% per annum upon the above said amount from the dated 19.01.2015 the last depositing installment till realization date. The respondent also to pay an amount of Rs.5,000/- (Rs. Five Thousand only) as litigation expenses to the complainant."
3. However, the National Consumer Disputes Redressal Commission, New Delhi (for short the National Commission) has passed the impugned order dated 15.10.2020 directing the refund of Rs.16,18,000/- (Rupees sixteen lakhs eighteen thousand only) with interest @ 9% per annum within a period of two months from the date of the said order.
4. Having heard learned counsel for the parties and on perusal of the materials placed on record, we are of the view that the National Commission was in error in partially reversing the order of the State Commission. Therefore, the order of the National Commission impugned herein is hereby set aside and the order of the State Commission dated 15.10.2020 is hereby restored.
5. The respondent is directed to pay/refund the amount in terms of the order of the State Commission dated 15.10.2020 within a period of two months from today, if already not paid/refunded.
6. The civil appeal is disposed of accordingly.
The National Commission erred in partially reversing the order of the State Commission.
Flat Buyers Agreement—No unwarranted deduction in refund amount is permissible.
“A consumer cannot be made to wait indefinitely or unreasonably and thus complaints hold entitled for refund of amount deposited under Builder Buyer Agreement.”
Non-compliance with contractual obligations regarding refunds and unjustified deductions constitutes deficiency in service.
(1) National Commission – Powers of the National Commission are very limited.(2) Revisional Jurisdiction – In exercising of revisional jurisdiction the National Commission has no jurisdiction to inte....
“A builder company cannot retain the amount deposited by a consumer indefinitely.”
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