The duty of the builder to obtain necessary permissions before collecting money from buyers and the entitlement of the complainant to interest on the deposited amount and compensation for deprivation of possession.

ORDER

1. Appellant was the opposite party before the District Forum.

Complainant/respondent was allotted flat No. 149A in 'silver City Themes' project floated by the appellant at a total cost of Rs. 14.50 lac. Booking amount of Rs. 1,45,000 was paid, possession was to be delivered on or before 31.7.2007. Respondent deposited a total sum of Rs. 13,55,000 but the possession was not delivered. Appellant vide letter dated 4.10.2010 assured the respondent that the possession of the flat would be handed over on or before 30.11.2009 and, subsequently, vide letter dated 15.5.2009 assured the respondent that the possession of the flat would be handed over within 12 to 15 months. Appellant did not adhere to the assurance. Respondent wrote several letters and reminders to the appellant to deliver the possession but to no avail. Being aggrieved, respondent filed the complaint before the State Commission seeking a direction to the appellant to hand over possession of the flat; to pay interest @ 12% p.a. on the sum of Rs. 13,55,000, already paid by him, till the date of possession; to pay rent @ Rs. 8,000 per month from 31.7.2007 along with compensation of Rs. 5 lac and costs of Rs. 35,000.

2. Appellant on being served entered appearance and admitted that the respondent was allotted flat No. 149A. It was also admitted that the respondent had paid Rs. 13,55,000 i.e. 95% of the sale price. It was pleaded that the possession could not be handed over to the respondent because of reasons beyond its control; that a Writ Petition had been filed in the High Court because of which it could not hand over the possession of the flat; that the Writ Petition was disposed of by the High Court in February 2011 and only after that, the appellant was in a position to give the possession.

3. State Commission allowed the complaint and directed the appellant to hand over possession of the flat within six months from the date of receipt of the order on payment of the remaining amount of consideration; to pay interest @ 12% p.a. by the complainant; to pay interest @ 12% p.a. on the sum of Rs. 13,55,000 from 1.8.2007 till the date of possession; Rs. 1 lac were awarded by way of compensation for harassment and Rs. 10,000 by way of costs of costs. In case of default of payment, interest @ 12% p.a. was ordered to be paid on the amount of compensation. State Commission in its order has observed as under:

9. The High Court of Punjab and Haryana in Civil Writ Petition No. 18632 of 2005 titled as Dharam Chand and Another v. State of Punjab and Others, vide order dated 30.1.2007, stayed the operation of letter dated 17.1.2006 (Annexure R-7), vide which the Punjab Pollution Control Board laid down the guidelines for setting up, colonies by the Promoters. Vide order dated 1.5.2008 Annexure R-11, the order dated 30.1.2007, was vacated. There is nothing, on record, that from 8.2.2006, when C-4 agreement, was executed, between the parties, up to 29.1.2007 (stay having been granted on 30.1.2007), no objection was obtained from the Punjab Pollution Control Board and the construction activity, was undertaken, by the opposite parties, though there was no stay, during this period. The stay, as stated above, was vacated on 1.5.2008. There is also, no document, on record, to establish that from 2.5.2008, until the filing of the complaint, any construction was carried out, by the opposite parties, at the site. Even if, the period of stay aforesaid, is excluded, the opposite parties, were required to undertake the construction of the project, before the stay was granted and after the same was vacated. When there was no progress, in construction, even after the vacation of stay, left with no alternative, the complainant had to file the instant complainant, seeking possession, interest on the amount deposited, rent paid by him and compensation. Even according to Clause 11 of Annexure R-5, dated 3.1.2006, vide which permission for raising construction, was granted to the opposite parties, by N