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2021 Supreme(Kar) 610

BEFORE THE KARNATAKA REAL ESTATE APPELLATE TRIBUNAL
K.P. Dinesh, Member (J), P.S. Somashekar, Member (Ad.)
Verghese Stephen – Appellant
Versus
Total Environment Building Systems (Private) Limited and Ors. – Respondents
Appeal (K-REAT) No. 104 of 2020 (Old RERA Appeal No. 120 of 2019)
Decided On : 23-04-2021

Advocates:
Advocate Appeared:
For the Appellant : Party-in-Person
For the Respondent:Sujatha H.H., Advocate

Headnote:

Real Estate (Regulation and Development) Act, 2016 - Sections 44(1), 17(1) , 17(2), 19(10) , 43(5) , 12, 14,17, 18 and 19 - Construction and completion of the villa - Executing Term sheet - Builder to refund maintenance fund of INR - Misrepresentation - Appellant has agreed to purchase a villa in project "After Rain Phase-II", a project promoted by 1st respondent, by entering into an agreement by paying entire consideration amount there was no progress in project, appellant demanded refund of amount along with the compensation - Appellant in order to make capital gain under the Income-tax Act, 1961, intended to invest amount which he got by sale of his property - Appellant accepted allotment of an alternate Villa No. 058 in Phase-I of "After The Rain Phase-I" project by executing Term sheet dated followed by an agreement of sale and construction - Appellant requested 1st respondent to execute and register sale deed in respect of a villa agreed to be purchased by him in order to comply with the requirement under Income Tax Act - respondent executed the sale deed for construction and completion of the villa as per agreement – Held, appellant in support of his claim for rentals paid by him has produced photocopies of the lease agreement one more lease agreement executed were produced before A.O - Lease agreements are executed between appellant for a period of 12 months and 11 months on monthly rent - lease agreement of rental agreement dated 1st October, 2018 is concerned, it is executed by one lessees on other part - father name of the lessees is also not mentioned in the rental agreement - Pan number of the lessees shown in rental agreement – Court are of view that compensation payable to the appellant towards rental is restricted to 12 months in respect of lease - appellant has claimed compensation in a sum mental torture - Learned A.O. declined to grant compensation towards mental agony by relying upon judgments of Hon'ble Supreme Court in the case of Ghaziabad Development Authority v Union of India and Lucknow Development Authority case – Appeal is partly allowed.

JUDGMENT :

K.P. Dinesh, Member, J.

1. This appeal is filed under Section 44(1) of the Real Estate (Regulation and Development) Act, 2016 (hereinafter referred in short as "The Act") against the impugned order dated 18-6-2019 passed by the learned Adjudicating Officer, RERA-2nd respondent herein.

2. The facts of the appellant's case in brief are that:

    (i) The appellant has agreed to purchase a villa in the project "After The Rain Phase-II", a project promoted by the 1st respondent, by entering into an agreement dated 10-2-2014 by paying entire consideration amount of Rs. 5,77,00,000/-. As there was no progress in the project, appellant demanded the refund of the amount along with the compensation. The appellant in order to make capital gain under the Income-tax Act, 1961, intended to invest the amount which he got by sale of his property. The appellant accepted the allotment of an alternate Villa No. 058 in Phase-I of the "After The Rain Phase-I" project by executing Term sheet dated 17-3-2016 followed by an agreement of sale and construction dated 30-3-2017. The appellant requested the 1st respondent to execute and register the sale deed in respect of a villa agreed to be purchased by him in order to comply with the requirement under Income Tax Act. Based on the said request, the 1st respondent executed the sale deed on 19-1-2018. The date for construction and completion of the villa as per the above agreement was 31-12-2017. It is contended that the construction of the project was not completed even up to January 2019 and the appellant filed a complaint CMP No. 190118/0001904 before the 2nd respondent. During the scrutiny of the complaint, the A.O. expressed the view that except under Sections 12, 14, 18 and 19 of the Act, he cannot deal with the complaint under other sections and accordingly the appellant had abandoned some of the reliefs and restricted his complaint only to the following reliefs:

"(a) Grant delay compensation for not giving READY TO MOVE IN POSSESSION from the agreed possession date 1-1-2018 on amount INR 6,30,00,000 (INR Six crore Thirty lakhs) as provided under Section 18(1) till possession with OC.

(b) Direct the builder to refund maintenance fund of INR 20,48,000/- with interest @ 21% from 27-3-2015 till full payment and this amount was collected by the builder on 27-3-2015 by misrepresentation.

(c) Grant compensation of INR 50,00,000/- for mental torture, INR 10,00,000 towards rental paid from January 2018 to April 2019 and INR 2,50,000/- per month towards rental from May 2019 till ready to move in possession is offered with CC/OC."

(ii) The 2nd respondent passed the impugned order dated 18-6-2019 allowing the complaint partly. Being aggrieved by the impugned order dated 18-6-2019 passed by the 2nd respondent the appellant assailing the same is before this Tribunal on the following grounds:

(iii) Grounds of appeal:

That the impugned order is erroneous, contrary to facts on record and law and is liable to be set aside;

It is contended that the impugned order suffers from legal infirmities and procedural irregularities;

It is contended that the 2nd respondent having held that the 1st respondent failed to give possession on agreed date i.e., 31-12-2017, granted compensation at 10.75% only from 1-1-2018 to 18-1-2018 on the ground that the complainant's status changed from allottee to owner from 19-1-2018 in view of the sale deed;

It is contended that from the date of execution of the sale deed, the complainant ceases to be an allottee is incorrect;

It is also contended that the respondent 1 has not complied with Sections 17 and 19 of the Act and bound to pay delay compensation;

It is contended that the compensation shall be provided on the total amount paid by the consumer who is waiting for completion of the project till he is an allottee;

It is contended that the terms in the agreement to sell continues even after the sale deed is executed and till all amenities are provided;

It is contended that appellant through a memo

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