IN THE HIGH COURT OF DELHI
C. Hari Shankar, J.
Aarcity Builders Pvt. Ltd. - Appellant
Versus
Subhash Sharma - Respondent
CM(M) 806 of 2022 & CM Appl. 35597 of 2022, CM Appl. 35598 of 2022, CM Appl. 35599 of 2022
Decided On : 17-08-2022
Consumer Complaint - Construction Project - Consumer Protection Act - [Section 25, Section 27, Section 58(1)(a)(iii)] - The court discussed the deficiency in service by the petitioner, the delay in possession of the flat, and the imposition of penal interest. The court referred to key legal provisions such as Section 25 and Section 27 of the Consumer Protection Act, and Section 58(1)(a)(iii) of the 2019 Act. The interpretation of the rights of the allottee, the liability of the builder, and the discretion in imposing penal interest influenced the court's decision.
Fact of the Case:
The petitioner, a construction company, failed to deliver possession of a flat to the respondent within the stipulated period, leading to a consumer complaint. The State Consumer Disputes Redressal Commission held deficiency in service and directed the petitioner to refund the amount with interest and compensation. The petitioner appealed to the National Consumer Dispute Redressal Commission, which dismissed the appeal.
Finding of the Court:
The court found deficiency in service by the petitioner, upheld the direction for refund with interest and compensation, and emphasized the liability of the builder to deliver possession within the stipulated period. The court also analyzed the delay in construction and the builder's failure to obtain an Occupation Certificate.
Issues: Deficiency in service, delay in possession, liability of the builder, and imposition of penal interest.
Ratio Decidendi: The court held that the builder's delay in possession constituted deficiency in service, emphasized the rights of the allottee, and upheld the imposition of penal interest as discretionary. The court also referred to relevant legal provisions and previous judgments to support its decision.
Final Decision: The petition was dismissed, and the direction for refund with interest and compensation was upheld.
1. The petitioner, which is engaged in the business of development and construction of multistoreyed residential and commercial buildings, launched a project under the name "Aarcity Regency Park" in Sectors 9 and 11, Hisar, Haryana in 2012. Anandita Sharma and Anuradha Sharma, the daughters-in-law of Respondent 1 booked a 3 BHK flat admeasuring 1625 sq. ft. in the aforesaid Aarcity Regency Park project of the petitioner in 2012. They were allotted Flat No. D 0804, Tower D at the 8th Floor of the project construction. The basic costs of the flat was Rs. 48,10,625/-. A Flat Buyer Agreement was executed between the petitioner and the daughters-in-law of Respondent 1 on 5th November 2012.
2. Subsequently, with the permission of the petitioner, the aforesaid flat was transferred by the daughters-in-law of Respondent 1 to Respondent 1 on 22nd March 2013. Respondent 1 opted for payment under the "Construction Linked Plan". The daughters-in-law of Respondent 1 had, prior to doing so, deposited a total amount of Rs. 21 lakhs towards the price chargeable in respect of the aforesaid flat.
3. Alleging that the construction on the project had come to a halt in February 2014, resulting in the petitioner not being able to deliver possession of the flat to Respondent 1 till November 2015 by which date possession was required to be delivered as per the Flat Buyer Agreement, the petitioner approached the learned State Consumer Disputes Redressal Commission, Haryana ("the learned SCDRC"), by way of Consumer Complaint 378/2017.
4. By order dated 18th February 2020, the learned SCDRC held deficiency in service on the part of the petitioner to have been proved and, therefore, directed the petitioner to make payment to Respondent 1 in terms of para 9 of the order, which read thus:
"9. Hence with the above observation and discussion there are sufficient grounds to accept the complaint and while accepting the complaint, the O.Ps. are directed to refund of the amount of Rs.21,00,000/- (Twenty One Lacs Only) alongwith interest @ 9% per annum from the date of respective deposits till realization. In case, there is a breach in making payment within the stipulated period of 45 days, in that eventuality, the complainant would further be entitled to get the interest @ 12% per annum, for the defaulting period. The complainant is also entitled of Rs.1,00,000/- (One Lac Only) for compensation of mental and physical agony. In addition, the complainant is also entitled of Rs.21,000/- (Twenty One Thousand Only) as litigation charges. It is also made clear that for noncompliance, the provisions enshrined under section 25 and 27 of the C.P.Act would also be
5. Aggrieved by the aforesaid order dated 18th February 2020 of the learned SCDRC, the petitioner preferred First Appeal No. 536/2021 (Aarcity Builders Private Limited v. Subhash Sharma) before the learned National Consumer Dispute Redressal Commission ("the learned NCDRC").
6. The said appeal stands dismissed by the learned NCDRC vide the impugned order dated 23rd September 2021. Paras 8 to 11 of the impugned order dated 23rd September 2021 of the learned NCDRC read thus:
"8. I have considered the arguments of the appellant and examined the record. A perusal of the order sheet shows that the case was adjourned on the request of the appellant on 10.01.2018, 07.03.2018, 24.04.2018, 26.07.2018, 24.09.2018, 12.11.2018, but written reply was not filed. The cost was imposed on 18.12.2018, when again adjournment was sought. Rs. 30000/- was not such a big amount for a builder of multi storied building, so as to make it impossible for him to pay. Absolutely no reason has been given for not filing written statement on earlier dates, which shows that the delaying tactic and harassing attitude of the builder. I do not find any illegality of the order of State Commission in this respect
9. According to the complainant, the construction on the site was stopped since 2013. Last instalment was paid him on 07.
AI
The liability of the builder to deliver possession within the stipulated period and the discretionary nature of imposing penal interest.
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