IMPORTANT POINT
Compensation can take different forms – Determination has to be made, keeping in view stage of work completed, where service provider has lapsed in duty and loss caused thereby – Uniformity is foreign to such determination.

JUDGMENT :

SANJAY KAROL J.

1. Leave Granted.

2. Under challenge in these appeals is a judgment and final order dated 1st April, 2019 passed in First Appeal Nos. 1852 of 2018 and 1853 of 2018 by the National Consumer Disputes Redressal Commission, New Delhi¹ [NCDRC] at the instance of Greater Mohali Area Development Authority² [GMADA] who is aggrieved by the order dated 1st March, 2018 of the State Consumer Disputes Redressal Commission, Punjab, Chandigarh³ [State Commission] whereby the State Commission partly allowed the respondents’ complaints (being CC No. 438 of 2017 filed by respondent Anupam Garg and CC No. 439 of 2017 filed by respondent Rajiv Kumar) against GMADA directing the latter to refund the entire amount deposited by both parties in respect of securing flats in the residential scheme launched by it along with 8% interest thereon as also paying additional costs for mental harassment, litigation and the interest paid by the respondents to the State Bank of India, for the loans that they had secured to arrange for the funds required to be invested in the project.

3. For the sake of convenience we only illustrate the facts of CC No. 438 of 2017 filed by Anupam Garg, which are similar to the facts being in CC No. 439 of 2017 filed by Rajiv Kumar. The sequence of events and background (as per CC 438 of 2017), as have been culled out by the Commissions, leading up to these appeals are:

3.1 GMADA launched a scheme of residential flats termed ‘Purab Premium Apartments’ to be constructed in the Sector 88 locality, at Mohali in the year 2011. Anupam Garg secured an application form for a 2-BHK + Servant Room Residential Apartment-Type II upon payment of 10% of the total consideration of Rs. 55 lakhs, i.e. Rs. 5,50,000/- as earnest money.

3.2 The allotment of the flats took place through a ‘draw of lots’ on 19th March, 2012. He was successful and a Letter of Intent⁴ [LOI] was issued in his favour on 21st May, 2012. It provided details regarding price, payment schedule, possible plans of payment, locations where payment can be deposited, particulars of ownership, possession, management and maintenance and other general terms and conditions. The relevant extracts of the LOI are as follows:

“PAYMENT SCHEDULE

2.1 For Initial 30%

(i) Payment of Rs. 11,00,000 (Eleven Lakhs Only) being 20% price of the apartment is to be made by 22.6.2012 to complete 30% of the apartment.

(ii) In case of failure to make the payment within stipulated period, the amount paid shall be refunded with 10% deduction and allotment cancelled. However, this period can be further extended up to 30 days with 2% Penalty, up to 60 days with 3% penalty and up to 90 days with 5% penalty on prior written request.

2.2 For Balance Payment of 65%

Plan-A

A sum of Rs. 33,96,250/- (Thirty three lakhs ninety six thousand two hundred fifty only) being balance 65% of tentative price of apartment within 60 days of the issue of LOI with a rebate of 5% on the balance amount payable.

Plan-B

A sum of Rs. 35,75,000 (Thirty five lakhs seventy five thousand only) being balance 65% of the tentative price can be paid with 12% interest in 6 half yearly instalments from the date of issue of LOI, Payment schedule mentioned as under:

2.3 For Balance Payment of 5%

(i) The balance amount of Rs. 2,75,000/- (Two lakhs seventy five thousand Only) being 5% of the tentative price of apartment shall be payable at the time of possession.

(ii) Delays in payment of instalments shall result in cancellation of the allotment. However, on request establishing genuine grounds, delays up to 12 months can be condoned by the Estate Officer, by charging 18% interest for the period of delay. Delays beyond 12 months shall not be condoned under any circumstances and shall result in cancellation of allotment and refund of the amounts paid, after forfeiture of 10% of the amount. Possession shall not be handed over till all dues are cleared.

(iii) In case of fully paid apartments, the enhancement in price (due to the reasons laid