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GOA STATE CONSUMER DISPUTES REDRESSAL COMMISSION
N.A. Britto, President and Mr. Jagdish Prabhudessai, Member
MURLI MENON AND ANOTHER - Appellants
Versus
BAPSY THOMAS AND ANOTHER - Respondents
FA No. 59 of 2014
Decided on : 10-09-2014

Advocates Appeared:
Mr. M.P. Mulgaonkar, Advocate, for the Appellant; In person, for the Respondent

Consumers are entitled to seek refund and interest in case of non-compliance with the agreement under the Consumer Protection Act.

Headnote:

Consumer Protection Act - Construction Agreement - 21.10.2008, 12.2.2009 - Summary of Acts and Sections: Consumer Protection Act, 1986 - The court discussed the principles of natural justice and the applicability of pleadings and evidence in consumer jurisdiction. It highlighted the importance of considering multiple documents together to determine a valid contract and emphasized the entitlement of consumers to seek refund and interest in case of non-compliance with the agreement.

Fact of the Case:

The Complainants entered into an agreement with the OPs for the construction of a flat. The Complainants alleged delay and non-compliance with the agreement, seeking a refund and compensation.

Finding of the Court:

The court found that the Complainants had made substantial payments and were entitled to seek a refund and interest due to non-compliance with the agreement by the OPs.

Issues: Dispute over payments made, non-compliance with the construction agreement, entitlement to refund and interest.

Ratio Decidendi: The court emphasized the importance of considering multiple documents together to determine a valid contract and highlighted the entitlement of consumers to seek refund and interest in case of non-compliance with the agreement.

Final Decision: The appeal was dismissed, affirming the refund and compensation awarded to the Complainants.

ORDER

Mr. Justice N.A. Britto, President - This appeal is filed by the opposite parties in C.C. No. 5/2011 and is directed against order dated 25.4.2014 of the North Goa District Forum, by which the consumer complaint filed on 17.1.2011 is partly allowed.

2. Some facts are required to be stated to dispose of this appeal.

3. The record, shows that the Complainant and the OPs entered into an agreement on 21.10.2008 styled as an agreement for construction cum sale by which the OPs, as builders, agreed to construct for the Complainants, a flat identified as FF 2 admeasuring 54.11 sq. mts. of builtup area in a building to be constructed by them to be known as "Symphony" in a plot of land admeasuring 284 sq. mts. in Chalta No. l of P.T. Sheet No. 140 at Mapusa. Complainants were to pay to the OPs a sum of Rs. 11,05,000, as per the schedule to the said agreement. The possession was to be delivered to the Complainant on or before March 09. The Complainant paid a sum of Rs. 2,40,000 by cheque dated 1.9.2008 and another sum of Rs. 2,00,000 by cheque dated 1.10.2008 and that was as per the said Schedule i.e. Rs. 2,40,000 on booking of the flat and Rs. 2,00,000 on completion of plinth. The agreement also stipulated that if for reasons, other than stipulated in the agreement, the OPs were not able to deliver the possession of the flat/the Complainants were entitled to give a notice to the OPs terminating the agreement in which event the OPs, within 4 weeks, were to pay to the Complainants the amounts received in respect of the said flat at 12% interest p.a. from the date of receipt of payment.

4. The Complainants paid another sum of Rs. 1,00,000 on 18.12.2008.

5. The Complainants then paid a sum of Rs. 40,000 on 25.2.2009 and Rs. 12,500 on 30.3.2009 in the bank account of the OP.

6. The Complainants and the OPs then entered into another agreement dated 12.2.2009 also styled as an agreement for construction-cum-sale in respect of the same flat and the Complainants paid on execution of the said agreement cash of Rs. 2,05,000. The payment of Rs. 1,00,000 of 8.12.2008 along with the cash payment of Rs. 2,05,000 were acknowledged in the said agreement and balance of Rs. 5,00,000 was to be paid as per the Schedule of the said agreement. Incidentally, as per the said schedule Rs. 1,00,000 were to be paid on booking of the flat and Rs. 2,05,000 were to be paid upon execution of the said agreement and total amount to be paid was Rs. 8,05,000.

7. The case of the Complainants was that the Complainants made many visits, including in September and December 2010, to the construction site but the building was not completed as per specifications. The Complainants pleaded that they have been always ready and willing to perform their part of the agreement. The Complainants stated that there was an unexplained delay in completion and delivery of the possession of the said flat and the OPs have been giving evasive replies and empty assurances and in spite of lapse of more than one year and half, the OPs failed and neglected to perform their part of the agreement i.e. agreement dated 12.2.2009 and failed to delivers vacant possession of the said flat completed in all respects. Complainants stated that they sent a legal notice dated 28.10.2010 to the OPs calling upon them to terminate the agreement as per Clause 3(e) and to refund the consideration amounts paid by the Complainants or to immediately deliver vacant possession of the said flat completed in all respects and in spite of the receipt of the said legal notice, the OPs failed and neglected to comply with the same. The Complainants filed the complaint to recover from the OPs a sum of Rs. 14,00,000 inclusive of the amount of consideration paid by them of Rs. 7,97,500; interest of about Rs. 2,10,000; expenditure incurred by them of Rs. 1,50,000; stamp duty and registration charges of Rs. 10,500; loss of investment of Rs. 1,50,000; and compensation for harassment of Rs. 20,000.

8. The case of the OPs is that the Co

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