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D. Y. CHANDRACHUD, J. B. PARDIWALA, MANOJ MISRA
Santhosh Narasimha Murthy – Appellant
Versus
Mantri Castles Private Limited – Respondent
| Table of Content |
|---|
| 1. home buyers' complaint regarding possession. (Para 1 , 2 , 3) |
| 2. court's previous orders on possession. (Para 4 , 5 , 6) |
| 3. pending issues on compensation and interest. (Para 7 , 8) |
| 4. terms of buyer agreements regarding compensation. (Para 9 , 10) |
| 5. interest entitlement and calculations. (Para 11 , 12 , 15) |
| 6. court's reasoning on interest rates. (Para 13 , 14 , 16) |
| 7. final compensation and interest ruling. (Para 17) |
| 8. conclusion and dismissal of pending applications. (Para 18 , 19 , 20 , 21 , 22) |
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 :
Consumer service agreements may not curtail statutory jurisdiction of consumer forums, which can award compensation beyond stipulated contractual terms if deemed unfair.
The court confirmed the right to interest for delayed possession, noting the absence of force majeure and completion certificate.
The execution of a conveyance deed and prior acceptance of compensation settle a builder-buyer dispute, preventing subsequent claims of deficiency despite contractual delays.
:(1) Standard Compensation Rate – In cases where the Allottee has already taken possession of the unit, compensation for the delay should not be excessive.(2) Overlapping Heads of Damages – Consumer ....
Flat-Buyers Agreement – Developer is bound to handover possession of flat to homebuyer by scheduled date.
Non-availability of the Occupancy/Completion Certificate points to the deficiency on the part of the Appellant.
Parties are entitled to compensation for delays in possession according to the terms set in the construction agreement, despite compliance issues.
Delayed Compensation - The complainants are entitled for delayed compensation in the form interest @6% per annum on their deposit from 10.09.2015 to 21.02.2018 – On facts, the complaint is partly all....
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