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IN THE HIGH COURT OF DELHI
C. Hari Shankar, J.
Shree Vardhman Infrahome Private Limited - Appellant
Versus
Swadesh Kumar - Respondent
CM(M) 524 of 2022 & CM Appls. 26552-54 of 2022, CM(M) 526 of 2022 & CM Appls. 26565-67 of 2022, CM(M) 527 of 2022 & CM Appls. 26570-72 of 2022, CM(M) 528 of 2022 & CM Appls. 26575-77 of 2022, CM(M) 529 of 2022 & CM Appls. 26578-80 of 2022, CM(M) 530 of 20
Decided On : 02-06-2022




The court remanded the case to reconsider the plea of force majeure, recognizing the developer's claim of Covid-19 related delays in complying with a settlement agreement timeline.

Headnote:(A) Constitution of India - Article 227 - Consumer Protection Act - Execution of settlement agreement - The court considered the plea of force majeure raised by the developer, citing the impact of Covid-19 and associated construction bans on compliance with the settlement agreement timeline. The previous order did not adequately address this plea, warranting remand for reconsideration. The court directs that the NCDRC must reevaluate the petitioner's claims regarding force majeure and its impact on the timeline for delivering possession and obtaining occupancy certificates. (Paras 17, 20, 23)

(B) Consumer Disputes - Definition of breach - The failure to meet the obligations under the settlement agreement within the agreed timeline constitutes a breach, permitting flat buyers to seek refunds as stipulated. (Para 10)

(C) Admissibility of Execution Petition - The court upheld the standing of individual flat buyers to file execution petitions despite initial objections based on prior agreements, reaffirming the permissibility of individual actions within the framework of settlement agreements. (Para 11)

(D) Timelines Extension - The court acknowledged factors beyond the control of the developer as valid justifications for extension of compliance timelines due to force majeure events. (Paras 24-25).

Table of Content
1. legal basis for petitions under article 227 (Para 1 , 1)
2. order and settlement agreement details (Para 2 , 3 , 4 , 5)
3. force majeure clause in apartment buyer agreements (Para 6 , 7)
4. notification of force majeure conditions (Para 8 , 9)
5. execution petition filed for breach (Para 10 , 11)
6. arguments concerning force majeure (Para 12 , 13 , 14)
7. court examination of the force majeure claim (Para 15 , 16 , 17 , 18)
8. remand of case for reconsideration due to oversight (Para 19 , 20 , 21)
9. clarification of the scope of remand (Para 22 , 23)
10. final orders and direction for next steps (Para 26 , 27 , 28 , 29 , 30)

JUDGMENT (Oral)

1. These petitions, under Article 227 of the Constitution of India, assail order dated 25th April, 2022 passed by the learned National Consumer Disputes Redressal Commission ("the learned NCDRC") in a batch of execution applications, seeking execution of the order dated 15th January, 2019, passed by the learned NCRDC in Consumer Case 1893/2017 (Flora Welfare Association v. Shree Vardhman Infrahome Pvt. Ltd.).

Order dated 15th January, 2019 and the Settlement Agreement

2. The order dated 15th January, 2019 reads thus:

    "The matter has been settled between the parties. The learned counsel for the complainant, on instructions from Mr. Sangeet Bali, President of the complainant association who is present in the Court, seeks disposal of the complaint in terms of the written settlement dated 15.01.2019 which is annexed to the application IA No.894 of 2019 filed today in the Court for recording the settlement. The complaint is accordingly disposed of in terms of the settlement dated 15.01.2019 which shall form part of this order. It is also made clear that in case the OP offers to pay the balance payable in kind, such as through additional parking, additional power back-up etc. as per clause 4 and para 2 of the settlement, which shall be for the discretion of the concerned allottees whether to accept such balance in kind such as additional parking, additional power back-up etc. or not. In the event they are not agreeable to accept the said balance in kind, the OP shall pay the balance to them by way of Demand Drafts/bank transfers etc. It has also been agreed between the parties and is ordered accordingly that the aforesaid settlement would not be treated as a binding precedent."

3. The settlement agreement dated 15th January, 2019, in terms of which the learned NCDRC had, vide the afore-extracted order dated 15th January 2019, disposed of Consumer Case 1893/2017, required the petitioner to, inter alia, (i) handover possession of the completed flats/units to the members of Flora Welfare Association, the complainant in Consumer Case 1893/2017, on or before 31st December, 2019, (ii) apply with the concerned authorities for obtaining occupancy certificate in respect of the units on or before 31st March, 2020, and (iii) obtain the occupancy certificate on or before 31st August, 2020.

4. The settlement agreement also incorporated the following clause:

    "(d) It is agreed and understood that the terms of the Apartment Buyer Agreement in so far as the same are not inconsistent with the terms of this settlement, shall continue to binding between the parties."

The Apartment Buyer Agreement

5. The "Apartment Buyer Agreements" (hereinafter referred to as the "ABAs") refer to the individual agreements executed between the flat buyers and the petitioner, the alleged breach of the obligations contained in, which constituted the basis of Consumer Case 1893/2017.

6. The ABAs, which were identically worded, provided for force majeure in Clause 14(a), which read thus:

    "14.(a) The Construction of the Flat is likely to be completed within a period of thirty six (36) months of commencement of construction of the particular tower/block in which the Flat is located with a grace period of six (6) months, on receipt of sanction of the building plans/revised plans and all other approvals subject to forc

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