IMPORTANT POINT
Unscrupulous Builders should be dealt with heavy hands.

V.B. Gupta, Presiding Member—In this revision petition, there is challenge to order dated 24.5.2012 passed by Karnataka State Consumer Disputes Redressal Commission, Bangalore (for short as ‘State Commission’) vide which appeal of the petitioner was dismissed at the admission stage.

2. Facts as emerges from record are that respondents/complainants in order to own a flat in Bangalore approached petitioner/opposite party and entered into sale and construction agreement, dated 14/11/2008 for purchase of Flat No.212 on 2nd Floor of Tower-2 Block in the project “Manthri Royal” along with one covered car parking in the basement floor for total sale consideration of Rs.37,70,247/-. At the instance of the petitioner, respondents paid Rs. 1,00,000/- on 07/11/2008 and Rs. 17,00,000/- on 14/11/2008, towards part of the sale consideration and agreed to pay the balance of sale consideration of Rs.19,70,247/- as and when demanded by the petitioner after completion of particular stage of construction and handing over the possession of the property. As per terms of the sale and construction agreement, petitioner failed to complete the construction work and even after lapse of three years from the date of agreement, failed to complete and hand over the possession of the property. In spite of several requests made to the petitioner which it did not consider, as a result respondents virtually lost interest in buying the schedule property from the petitioner. Realizing the fact that there will be a further delay in completing the project and handing over of the possession of the property, respondents requested the petitioner to refund the amount paid by them to the extent of Rs.18,00,000/- as they are willing to buy an apartment for their own elsewhere. Even though petitioner has sent an ‘e’mail on 07/08/2011 informing the respondents that refund of cheque would be ready by 16th of August, 2011, but it failed to refund the amount. Therefore, respondents filed complaint before the District Forum.

3. Petitioner in its written version and additional version admitted receipt of Rs.18,00,000/- as well as agreement to sale and agreement to construction. It is stated that as per agreement, petitioner have to deliver the property to the respondents within 18 months from the date of commencement of construction, provided all instalments are paid promptly and regularly. The commencement certificate was obtained on 10.09.2012. But in the meanwhile, respondents terminated the contract. Hence, they are not entitled to any relief.

4. District Forum, vide its order dated 29.3.2012, allowed the complaint in part and passed the following order;

“2. The opposite parties are directed to pay to the complainants the sum of Rs.18,00,000/- together with interest @ 3% per annum thereon from 14.11.2008 until payment within 30 days from the date of this order.

3. In case it is not paid within 30 days, the amount stated at serial No.2 above, then they shall pay Rs.18,00,000/- with interest at 12% p.a. from 14.11.2008 until payment within 60 days from the date of this order.

4. In case it is not paid within 60 days the amounts stated at serial No.2 or 3 above, then they shall pay Rs.18,00,000/- with interest at 18% p.a. from 14.11.2008 until payment within 90 days from the date of this order.

5. The opposite parties are also directed to pay Rs.2,000/- towards costs of this litigation.”

5. Aggrieved by the order of the District Forum, petitioner filed an appeal which was dismissed at admission stage by the State Commission. This is how the matter has reached before this Commission.

6. It is contended by learned counsel for petitioner that the State Commission has not considered the fact that the case was mainly for recovery of money once the agreement has been cancelled by Respondents by demanding the refund of the amount which respondents had given to the petitioner in pursuance of agreement of sale & agreement of construction dated 14.11.2008. So rather tha