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PAMIDIGHANTAM SRI NARASIMHA, ALOK ARADHE
Sriganesh Chandrasekaran – Appellant
Versus
Unishire Homes LLP – Respondent
Ratio Decidendi: In a Joint Development Agreement (JDA) coupled with a General Power of Attorney (GPA) authorizing the developer to handle sales, construction, and possession for its share of flats, the landowners are not jointly and severally liable with the developer for deficiency in service or delay compensation arising from the developer's failure to complete construction and hand over possession, as construction obligations rest solely with the developer, who indemnifies the landowners against such lapses, and no delay is attributable to any act or omission by the landowners. (!) (!) (!) (!) (!) (!) (!) (!) (!) (!) (!) (!) (!) (!) (!) (!) (!) Landowners remain jointly responsible with the developer only to ensure transfer of title and execution of sale deeds to buyers. (!) (!)
JUDGMENT
ALOK ARADHE, J.
1. These appeals, filed under Section 67 of the Consumer Protection Act, 2019 arise out of the impugned judgment and final orders dated 30.07.2024 and 19.10.2023 passed by National Consumer Disputes Redressal Commission (Commission) in the Review Petition and consumer case respectively.
2. Facts giving rise to filing of these appeals, briefly stated, are that landowners entered into a Joint Development Agreement (JDA) with the developer on 24.02.2012 and executed General Power of Attorney (GPA) in favor of the developer. On 21.02.2013, the developer obtained the sanctioned plan and a construction licence. Thereafter, from 29.07.2013, onwards the developer executed the Memoranda of Sale Agreements with the flat buyers. Under the Sale Agreements, the developer agreed to handover the possession of flats within 36 months.
3. The initial 36 months period for handing over the possession of the flats expired on 24.08.2016. The grace period of six months also expired on 24.02.2017. However, the project remained incomplete. On 05.06.2017, the appellants issued a notice seeking redressal for delay in handing over the possession of the flats.
4. The appellants filed a Comp
Joint Development Agreement (JDA) – Delay in handing over possession of flats – Landowners are jointly responsible with developer to ensure transfer of title to appellants – For lapse on part of deve....
Deficiency in Service – Deficiency in service is manifest as possession has not been offered by the respondents despite payment of nearly 90% of the consideration agreed upon between the parties.
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) Unreasonable and unfair - The Complainant cannot be made bound to the terms of the Agreement, which are unreasonable and unfair.(2) Dotted lines - A terms of a contract will not be final and bind....
Consumers cannot be compelled to accept possession of property without proper approvals; they are entitled to refund and compensation for delays.
Developers are liable to pay delay compensation when possession of flats is not delivered within the agreed timeframe, reinforcing consumer rights against unfair contractual terms.
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....
Consumer agreements with one-sided clauses are unenforceable; delayed possession incurs compensation at 8% interest.
(i) the Opposite Party Developer shall complete the construction of allotted flats/Apartments in all respect within a period of six months from today and shall offer possession to the Complainants af....
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