ORDER :

Civil Appeal No 8418 of 2022

1. A set of sixty-two home buyers instituted a consumer complaint claiming that the first respondent had failed to deliver possession of the flats which had been purchased by them under home buyer agreements.

2. The National Consumer Disputes Redressal Commission¹[“NCDRC”] granted permission to sue in a representative capacity under Section 12 (1)(c) of the Consumer Protection Act 1986 on 1 December 2020. As a consequence, the complaint assumed the character of a class action. The NCDRC found that there was a delay on the part of the developer in handing over possession. It partially allowed the complaint in the following terms :

“… The opposite parties are directed to obtain ‘Occupancy Certificate’ and offer possession complete in all respect as per specification to the complainants within three months from the date of this judgment. While offering possession, the opposite parties shall give Statement of Account to the complainants, strictly in terms of the agreement, adjusting delayed compensation in the shape of interest @ 6% per annum on the deposit of the complainants from 28.02.2018 till the offer of possession, giving at least one month time to deposit the balance amount, if any. On deposit of the amount, the opposite parties shall execute conveyance deeds in favour of the complainants and handover possession to them.”

3. Appeals have been filed against the order of the NCDRC by the sixty-two home buyers. A cross appeal has been filed by the developer.

4. During the pendency of these proceedings, an order was passed by this Court on 13 February 2023 recording the statement of the first respondent that possession would be handed over before the next date of listing to all flat buyers who had paid all their outstanding dues in terms of the agreements. The Court directed that this would also apply to purchasers who would pay their outstanding dues before the next date of listing and that upon their making payment, possession shall be handed over.

5. On 13 March 2023, this Court recorded the statement of Mr Shekhar G Devasa, counsel appearing on behalf of the respondent that possession has been offered to the appellants in the Civil Appeal. This was accepted by Mr Gopal Sankaranarayanan, senior counsel appearing on behalf of the appellants. In pursuance of the previous order dated 13 February 2023, the developer was directed to hand over possession to all those flat buyers who have made full payment of their outstanding dues in terms of the agreement. A tabulated position indicating the names of the flat buyers and the date on which possession was handed over was to be placed on the record on affidavit by the next date of hearing.

6. We have heard Mr Ajit Sinha, senior counsel appearing on behalf of the home buyers, Mr Shekhar G Devasa, counsel appearing on behalf of the first respondent and Mr D K Devesh, counsel appearing on behalf of the land owner.

7. During the course of the hearing, Mr Ajit Sinha, senior counsel appearing on behalf of the home buyers states that in pursuance of the previous orders of this Court, possession has been handed over to all the sixty-two home buyers who have executed agreements and full payment has been made. This aspect is not in dispute.

8. Two surviving issues remain, which form the subject matter of the submissions before the Court :

(i) Payment of compensation for the delay in handing over of possession at the contractual rate; and

(ii) Award