IMPORTANT POINT
Parties are bound by terms of agreement.

J.M. Malik, Presiding Member —This order shall decide two cases detailed above. The facts of both the cases and law points involved herein are similar. Therefore, both these cases are being decided through a common judgment.

2. The case of the complainants, Sh. Subhash Chander Mahajan and Sh. Aditya Mahajan, in complaint No. 144 of 2014 is this. They booked a Three-Bed Room residential Flat No. 1402, measuring 1855 sq. ft in the Parsvnath Privilege Complex situated in Plot No.11, Sector P-1, Chauraisin Estate, Greater Noida. Both the complainants were issued a provisional allotment letter dated 23.02.2007. It was agreed that the flat would be completed within a period of 36 (thirty-six) months from the date of commencement of construction. The Agreement has been attached as Ex.P-2, in this case. It was also agreed that if there was delay in construction of the flat, beyond the period, as stipulated, the Parsvnath Developers/OP would pay to the complainants Rs.5/- per sq. ft, per month, for the period of delay of the agreement. The complainants made full payment towards the flat in question in May, 2007, under the Down Payment Plan, Plan-A. “A provision for 10% rebate was also provided at the very start.” It is alleged that the construction of the said premises was stopped in January, 2008 for the reasons best known to the OP. The complainants took loan of Rs.20.00 lakhs in May, 2007 from HDFC Bank for the purpose of making payment towards the above said booked flat. They have already paid the interest from 01.04.2007 to 31.03.2012 in the sum of Rs.6,97,230/- vide receipts, annexed as Annexure P-3 (colly).

3. OP vide letter dated 10.06.2010 admitted that there had been a delay in the construction of the project. The OP itself, vide its letter dated 22.05.2007, informed HDFC Bank that the loan was required by the complainants. The factum of loan was in the knowledge of the OP. The complainant wrote a number of letters vide Annexure P-5 (colly) (about 15 letters approximately), requesting it to explain the status report of the project.

4. It was stipulated in the agreement that an interest @ 24% p.a. would be charged in case of default in payment by the complainants. It is contended that the OP is also liable to pay the same interest @ 24% p.a. as calculated from July, 2011, in the sum of Rs.80,74,423/- besides the principal amount of Rs.50,708,998/-. The OP has caused mental agony, harassment in not handing over possession of the flat to the complainants. Consequently, it is also liable to pay Rs.20.00 lakhs towards damages, harassment and mental agony caused to the complainants due to the acts of OP. The complainants are sharing their residence with their daughter in Gurgaon after retirement of complainant No. 1. The complainants had made up their mind to stay in their own house after retirement of complainant No. 1.

5. As per Clause 10(c) of the Flat Buyer Agreement, it was agreed by the OP that in case of any delay, the OP shall pay to the complainants a compensation @ Rs.5/- per sq.ft., per month, for the period of delay and therefore, a sum of Rs.1,02,025/- accrued towards compensation from September, 2010, till July, 2011. It is contended that the amount of Rs.5/- per sq.ft. is unjust and OP has exploited the complainants by delaying the construction work. The complainants visited the premises in dispute, a number of times till 29th June, 2011, but did not find any progress at the premises. They demanded the refund but the same was not given. Consequently, the complainants have filed the complaint with the following prayers :-

“a. Grant a sum of Rs.1,31,53,421/- (towards principal amount of Rs. 50,78,998/- along with interest of Rs.80,74,423/-) at the rate of 24% per annum compounded along with pendent lite and future interest at the rate of 24% per annum compounded till the date of actual realization of the payment.

b. Grant a sum of Rs.1,02,025/- towards compensation at the rate of Rs.5 per sq.ft., per month on th