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NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION, NEW DELHI
V.K. Jain, Presiding Member
Vibhav Singh and Anr. —Complainant
versus
Parshvnath Buildwell Private
Limited and Anr. —Opp. Parties
Consumer Case No.1076 of 2016
Decided on 18.5.2018

Counsel for the Parties:
For the Complainant:Mr. Dinkar Singh, Advocate
For the Opp. Party No.1:Mr. Prabhakar Tiwari and Mr. Deeptanshu Jain, Advocates
For the Opp. Party:Ms. Garima Goel, Advocate for Indiabulls Housing Finance

IMPORTANT POINT
Allottees cannot be made to wait indefinitely for possession of flats booked by them.

Headnote:Consumer Protection Act, 1986—Section 21—Real estate—Flat Buyers Agreement— Possession of flat having not been delivered and construction having not been completed, complainants are seeking refund of amount paid by them alongwith compensation—Neither builder has valid building plans which would enable it to resume development nor does it have a subsisting development agreement with land owner—In these circumstances, allottees cannot be made to wait indefinitely for possession of flats booked by them and they are entitled to seek refund of entire money paid by them, along with appropriate compensation in form of interest for financial loss suffered by them by keeping their money with opposite party—OP shall refund entire principal amount to complainants alongwith compensation in form of 10% simple interest—OP shall also pay a sum of Rs.25,000/- as cost of litigation to complainants. (Paras 6 to 8)

       Result: Complaint allowed.

       

ORDER (ORAL)

V.K. Jain, Presiding Member—Previous cost has been paid but the OP has still not filed affidavit by way of evidence. IA No. 266 of 2018 has been filed by the complainants bringing the aforesaid default to the notice of this Commission. The affidavit of the OP is ready and advance copy has been supplied today in the Court. The OP is permitted to file the said affidavit.

2. The complainants booked a residential apartment with the OP on 16/18.05.2012 in a project namely ‘Parasvnath Exotica’ which the OP was to develop in Ghaziabad. Unit No. B-4/903 in Tower No. B-4 was allotted to the complainants for a consideration of Rs.81,98,925/- and applicable taxes. The parties then executed a Flat Buyers Agreement on 13.09.2012, incorporating their respective applications in respect of the aforesaid transaction. In terms of clause 10(a) of the Agreement, the possession was to be delivered within 36 months of the execution of the agreement though the OP had a grace period of six months available to it. The said agreement was also signed by the collaborator of the OP namely Devidayal Aluminium Industries Private Limited which is stated to be the owner of the land on which the project was to be developed. The possession of the flat having not been delivered and in fact construction having not been completed, the complainants are before this Commission seeking refund of the amount paid by them alongwith compensation etc.

3. The complaint has been resisted by the OP on several grounds but it is an admitted position that the construction of the flat in Tower B-4 is not complete. The contention of the learned counsel for the OP is that Devidayal Aluminium Industries Private Limited had unilaterally terminated the development agreement and informed the Ghaziabad Development Authority of the same as a result of which, the building plans were not released by Ghaziabad Development Authority. He further submits that now through the intervention of the Hon’ble Supreme Court, the building plans are likely to be approved soon and the construction will be completed thereafter, in a time bound manner.

4. The learned counsel for the complainants has placed reliance upon the decision of this Commission in CC No.45 of 2015 and CC No.46 of 2015 Parsvnath Exotica Ghaziabad Resident’s Association Vs. Parsvnath Buildwell Pvt. Ltd. & Anr. decided on 06.05.2016. In the aforesaid case, 39 members of the complainant society had booked residential flats in Towers B to D of this very project and 31 members of the said association had booked residential flats in Towers E and F. Complaint No.45 of 2015 pertains to the members who had booked flats in Tower B to D whereas complaint no. 46 of 2015 pertains to the members who had booked flats in Towers E and F of the said project. In that case, the time for completing the construction ended in June 2011. Since the possession of the flats was not delivered to the allottees, the complainant association approached this Commission by way of two Consumer Complaints impleading Parsvnath Developers Ltd., Parsvnath Buildwell Pvt. Ltd. and Devidayal Aluminium Industries Private Limited as the OPs in the complaint. The complaints were opposed on several grounds but were eventually allowed by this Commission. The decision of this Commission to the extent it is relevant, reads as under:

“3. In their reply / written version to the complaint, opposite party No.1 has not disputed bookings made by the members of the complainant association nor has it disputed the payments made by them for the Apartments booked with them. It is alleged that opposite party No.1 Parsvnath Developers Limited and opposite party No.3 Devidayal Aluminium Industries (P) Ltd. had entered into a development agreement wherein opposite party No.1 had agreed to carry out development, construction and sale of areas on the land owned by opposite party No.3



















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