IMPORTANT POINT
Having expressly agreed to grace period for obtaining completion certificate, Builder cannot escape its liability to pay compensation for any delay beyond grace period.

V.K. Jain, Presiding Member—The respondent/complainant entered into an agreement to purchase a residential flat from the petitioner company and the parties entered into a Flat Buyers Agreement dated 16.05.2005 in respect of Flat No.104, Tower 4. As per the aforesaid agreement, the petitioner was required to deliver possession of the flat to the complainant within 36 months from the date of the agreement subject to an extension of 90 days for applying and obtaining the occupancy certificate.

2. The petitioner applied for the occupancy certificate on 14.07.2008 but the said certificate was issued only on 16.09.2009. The flat was handed over for limited purpose of fitting due on 24.02.2009. The sale deed in respect of the flat however was executed only on 13.11.2009. Being aggrieved from the delay, the complainant approached the concerned District Forum by way of a complaint.

3. The complaint was opposed by the petitioner primarily on the ground that they having applied for the occupancy certificate on 14.07.2008 within the grace period stipulated in the Buyers Agreement and the authorities having taken almost 14 months in issuing the said certificate, they cannot be said to be responsible for the delay in delivering possession to the complainant. The petitioner company in this regard placed reliance upon clause 46 of the buyers agreement.

4. The District Forum vide its order dated 25.10.2012 awarded compensation to the complainant @ Rs.9,045/- per month for the period from 16.08.2008 to 16.02.2009 amounting to Rs.54,270/- along with interest @ 9% p.a. and compensation for harassment and litigation charges quantified at Rs.50,000/-.

5. Being aggrieved from the order of the District Forum, the petitioner company approached the concerned State Commission by way of an appeal. Vide impugned order dated 23.09.2015, the State Commission while maintaining compensation quantified at Rs.54,270/- for the delay in delivering possession, reduced the lump sum compensation and cost of litigation from Rs.50,000/- to Rs.25,000/-. Being still dissatisfied, the petitioner is before this Commission by way of this revision petition.

6. Clause 28 and 46 of the Buyers Agreement read as under:-

28. Possession

a) Time of handing over the possession

That subject to terms of this clause and subject to the Flat Allottee(S) having complied with all the terms and conditions of this Agreement and not being in default under any of the provisions of this Agreement and complied with all provisions, formalities, documentation etc., as prescribed by the Developer, the Developer proposes to hand over the possession of the FLAT within a period of thirty six (36) months form the date of signing of this Agreement. The Float Allottee(S) agrees and understands that the DEVELOPER shall be entitled to a grace period of 90 days, after the expiry of thirty six (36) months, for applying and obtaining the Occupation Certificate in respect of the Group Housing Complex.

b) Subject to Clause 46, in the following circumstances, the date of possession shall get extended accordingly:

i) The completion of the said Group Housing Complex including the Flat is delayed by reason of non-availability of steel and / or cement or other building materials, or water supply or electric power or slow down strike or, lock-out or civil commotion or by reason of war or enemy action or terrorist action or earthquake or any act of God or due to any Act, Notice, Order, Rule or Notification of the Government and / or any other Public or Competent Authority or due to delay in sanction of any revised building/zoning plans or for any other reasons beyond the control of the Developer, then the Flat Allottee(S) agree that the Developer shall be entitled to the extension of time for handing over of the possession of the said Flat. The Developer as a result of such a contingency arising reserves the right to after or vary the terms and conditions of this Agreement or if the circumstances beyond the control