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NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION, NEW DELHI
Dr. S.M. Kantikar, Presiding Member and Dinesh Singh, Member
DLF Homes Panchkula Pvt. Ltd.
and Ors. —Appellants
versus
D.S. Dhanda and Ors. —Respondents
First Appeal Nos.853 to 855, 1144, 1237, 1239, 1240, 1306 to 1312, 1314 and 1356 of 2016
Decided on 12.12.2018
For the Appellants:Mr. Pravin Bahadur, Ms. Seema Sundd, Mr. R. Soundar Rajan and Mr. Aditya P. N. Singh, Advocates (in FA/853/2016)
For the Respondents:Ms. Priyanka Dutta, Mr. Sudhir Bisla and Ms. Nainee Jha, Advocates (in FA/854/2016; 855/2016; 1308/2016; 1310/2016; 1311/2016)
For the Respondents: NEMO (in FA/1144/2016)
For the Respondents:Mr. Anant Agarwal, Ms. Shweta Sirohi and Ms. Ritika Khanna, Advocates (in FA/1237/2016; 1239/2016 & 1240/2016)
For the Respondents:Ms. Pooja Vohra, Advocate (in FA/1306/2016)
For both Respondents:Mr. Amarjeet Singh, Mr. Anant Aggarwal and Ms. Ritika Khanna, Advocates (in FA/1307/2016)
For the Respondents:Mr. Rajesh Sharda and Mr. Akshay Sharma, Advocates (in FA/1309/2016)
For the Respondents:Mr. Navneet Kumar and Mr. Vikas Bhadana, Advocates (in FA/1312/2016)
For the Respondents: In person (in FA/1314/2016
For the Respondents:Mr. Surender Deswal and Mr. Prashant V., Advocates (in FA/1356/2016)
For the Respondents:Mr. Amarjeet Singh and Mr. Sudhir Kathpalia, Advocates
IMPORTANT POINTS
If the terms of the contract are not adhered to by the builder, he is liable to pay compensation , interest etc., apart from handing over the possession by a stipulated date.
If any frivolous applications are filed without complying the orders, the builder is also liable to pay penal interest etc.
Headnote:Consumer Protection Act, 1986 – Section 19 – First Appeal –16 appeals were filed by the builder / O.P against the order of the State Commission in the 16 complaints - Complainants have booked flats separately by each of them in the 16 matters – substantial amounts were paid and possession was not handed over by the O.P – Hence, complaints were filed and allowed – O.P filed applications in some of the matters filed against them for stay of the proceedings on the ground that the Hon’ble forum has no jurisdiction to try the matter – Some cases were stayed – However, these 16 Appeals were not stayed and hence, the matters were heard on merits and disposed of accordingly – On perusing the record, documents etc., it is held that the O.P / builder co. is directed to hand over physical possession of the subject unit, complete in all respects, within four weeks from the date of pronouncement of this Order - The O.P / builder co. shall execute and get registered the sale-deed of the subject unit, on payment of registration charges and stamp duty by the complainant within four weeks of pronouncement of this Order - The O.P /builder co. shall pay compensation to each complainant by way of interest on the deposited amount( as detailed in the Order ) – O.P shall pay a sum of Rs. 1 lakh per year from the assured date of handing over possession to the actual date of handing over possession - The amount due upto 31st October 2018 shall be paid within four weeks of the pronouncement of this Order - The onus of calculating the correct and full amount and paying the same to the complainant with clear and cogent calculation sheet shall be on the builder co - The builder co. shall pay cost of litigation of Rs.1 lakh to the complainant, within four weeks of the pronouncement of this Order - The first charge on the amount payable for compensation and cost of litigation by the builder co. to the complainant shall be, of the bank or financial institution from which the complainant has taken loan – O.P has to pay a sum of Rs. 25,000/- in each case (i.e. in total 1 + 15 = 16 cases) to be deposited in the Consumer Legal Aid Account of the State Commission, within four weeks - Failure in timely compliance shall attract higher / penal interest and other compensation / costs (which shall be determined by this Commission in the facts and specificities of that contingency if it so arises) – 16 Appeals are disposed of with above directions.
Result: Appeals are disposed of with directions to the builder.
A fair number of first appeals (f.a.s.) filed by the appellant – builder co. are pending before various benches of this Commission, including this bench. The instant case relates to 16 f.a.s. filed by the appellant – builder co. under section 19 of the Consumer Protection Act, 1986 against the State Commission’s Orders (6 nos.) dated 02.06.2016, 02.08.2016, 17.08.2016, 29.08.2016, 01.09.2016 and 12.09.2016 whereby the State Commission directed the builder – co. to hand over physical possession of the units as per the terms and conditions of the agreements; execute and get registered the sale-deeds; pay compensation; and pay cost of litigation to the respondents – complainants.
2. We heard the learned counsels for the builder co. and the complainants, and perused the material on record.
3. During arguments on 24.10.2018 the learned counsels for the builder co. raised an objection that this bench was constituted of non-judicial members and as such was not competent in law to adjudicate the issues.
4. We feel it appropriate to briefly put the question of competence in perspective.
5. Notwithstanding that one of us has a doctorate in law and one of us has a graduate degree in law in the first division, and notwithstanding that one of us has had over five years’ experience in this Commission itself and one of us has had fair experience of court-work including revenue court–work (in which the CPC and the Evidence Act were applicable, civil court jurisdiction was barred, parties were represented through advocates, reasoned judgements were delivered and were subject to scrutiny), the fact is that we are not from the judicial service.
6. But, briefly, we would like to refer to the following:—
Statement of Objects and Reasons
The Consumer Protection Bill, 1986 seeks to provide for better protection of the interests of consumers and for the purpose, to make provision for the establishment of Consumer councils and other authorities for the settlement of consumer disputes and for matter connected therewith.
To provide speedy and simple redressal to consumer disputes, a quasi-judicial machinery is sought to be set up at the district, State and Central levels. These quasi-judicial bodies will observe the principles of natural justice and have been empowered to give relief of a specific nature and to award, wherever appropriate, compensation to consumers. Penalties for non-compliance of the orders given by the quasi-judicial bodies have also been provided.
Aims and Object
An Act to provide for better protection of the interests of consumers and for that purpose to make provision for the establishment of consumer councils and other authorities for the settlement of consumers’ disputes and for matters connected therewith.
Section 20 (1) (b)
The National Commission shall consist of—
(b) not less than four, and not more than such number of members, as may be prescribed, and one of whom shall be a woman, who shall have the following qualifications, namely:— ]
(i) be not less than thirty-five years of age;
(ii) possess a bachelor’s degree from a recognised university; and
(iii) be persons of ability, integrity and standing and have adequate knowledge and experience of at least ten years in dealing with problems relating to economics, law, commerce, accountancy, industry, public affairs or administration:
Proviso to Section 20 (1) (b)
Provided that not more than fifty per cent. of the members shall be from amongst the persons having a judicial background.
Explanation.—For the purposes of this clause, the expression “persons having judicial background” shall mean persons having knowledge and experience for at least a period of ten years as a presiding officer at the district level court or any tribunal at equivalent level:
Section 20 (1A) (ii)
A Bench may be constituted by the President with one or more members as
