CHANDIGARH CONSUMER DISPUTES REDRESSAL COMMISSION
K.C. Gupta, President and Maj. Gen. S.P. Kapoor, Member
SAHIB CHAND AND ANR. - Appellants
Versus
PUNJAB URBAN PLANNING AND DEVELOPMENT AUTHORITY (PUDA) - Respondent
Appeal Case No. 164/2005(Pb)/RBT/855 of 2007 and 188/2005/(Pb)/RBT/846 of 2008
Decided on : 07-03-2008
Consumer Protection Act - Real Estate Dispute - Section 3, Section 16, Section 21 - The court discussed the provisions of the Consumer Protection Act, particularly Section 3, which states that the Act's provisions are in addition to and not in derogation of the provisions of any other law. The court also referred to Section 16 and Section 21 of the Act. The court's decision was influenced by the interpretation of these provisions, allowing the complaint to be filed under the Consumer Protection Act despite the existence of arbitration provisions.
Fact of the Case:
The complainants purchased a residential plot from Punjab Urban Planning and Development Authority (PUDA) but did not receive physical possession or promised amenities. PUDA contested the complaint, claiming it was time-barred and should have been referred to arbitration.
Finding of the Court:
The court found that the complainants had made full and final payment for the plot, and PUDA had failed to provide amenities and deliver possession. The court also held that the complaint was maintainable under the Consumer Protection Act, despite PUDA's contention.
Issues: Failure to deliver possession, non-provision of promised amenities, time-barred complaint, and maintainability under the Consumer Protection Act.
Ratio Decidendi: The court held that the complainants had fulfilled their payment obligations and that PUDA's failure to provide amenities and deliver possession warranted compensation. The court also ruled that the complaint was maintainable under the Consumer Protection Act.
Final Decision: The court dismissed both appeals and ordered PUDA to refund the excess amount paid by the complainants and awarded interest at 18% per annum until amenities are provided and site plan is sanctioned.
ORDER
K.C. Gupta, President - Both the appeals have arisen out of same order dated 21.12.2004 and as such are disposed of by common judgment.
2. Briefly stated the facts are that complainants Rajiv Makkar and Sahib Chand jointly purchased a residential plot No. 9 for Rs.13,12,500 in the scheme advertised by Punjab Urban Planning and Development Authority (for short PUDA) for residential and commercial plots at Old Police Academy, Phillaur, by way of auction vide allotment letter dated 15.6.2001. He deposited Rs.1,31,250 i.e. 10% of the sale price on 7.2.2001 at the spot and deposited Rs.1,96,875 being 15% of the total amount on 5.3.2001. The balance price was deposited by complainant vide receipt No. 55 dated 2.8.2001 accepting it as full and final payment of the total price of the plot.
3. It was next averred that however, PUDA failed to deliver physical possession of the said plot and further failed to provide amenities/facilities in the colony as promised through advertisement and as per terms and conditions of the allotment letter.
4. It was further averred that site plan was submitted for sanction which was returned as zoning plan of the scheme was not approved by 26.1.2003. Issuance of No Due Certificate was also refused on 28.11.2002, although full and final payment was made as early as on 2.8.2001. PUDA started asking for the payment of interest amount of Rs.1,05,604 and consequently alleging deficiency in service, the complaint was filed.
5. PUDA contested the complaint and stated that in view of the terms and conditions, the matter was to be referred to the Arbitrator and as such complaint was not maintainable. It further stated that the complaint was to be referred to the Chief Administrator which was not done and as such the complaint was not maintainable. It next stated that the complaint was also time barred as the last payment was made on 2.8.2001 and the present complaint had been filed on 20.11.2003 after a lapse of more than two years. It next stated that the remaining payment was required to be paid to get rebate of 5% within 60 days of the date of auction and since, payment was not made within 60 days, so, complainant was not entitled to 5% rebate. It further stated that the complainant was bound by the terms and conditions of the allotment letter. According to allotment letter, balance payment should have been deposited on or before 7.4.2001 and not on 2.8.2001 to claim rebate. It also stated that facilities like water supply and sewerage were to be provided by the Municipal Corporation and not by PUDA and it had already deposited Rs.1,27,240 with Nagar Council, Phillaur for carrying out the works of sewerage and water connection. Therefore, if there was any dealy, it was not to be blamed. It next stated that complainant was still liable to pay Rs. 93,550 on 25.2.2004,so, complaint should be dismissed.
6. Parties adduced their evidence by way of affidavits.
7. After hearing Counsel for the parties, District Consumer Forum vide order dated 21.12.2004 accepted the complaint with costs of Rs. 2,000 and directed PUDA to refund Rs. 80,000 paid in excess and further to pay compensation @ Rs. 20,000 per year from the date of final payment i.e. 2.8.2001 till handing over of actual possession and providing of amenities.
8. Aggrieved by the said order, both parties have filed abovementioned two appeals.
9. We have heard Mr. Asa Singh, Advocate for Mr. Sahib Chand, etc., complainant, Mr. Harsh Aggarwal, Advocate for PUDA, and carefully gone through the file.
10. It is an admitted fact that residential plot No. 9, near Veterinary Hospital, Phillaur at Old Police Academy, Phillaur was purchased by Shri Sahib Chand and Shri Rajiv Makkar, complainants in open auction on 7.2.2001 for Rs.13,12,500. They had deposited Rs.1,31,250 being 10% of the sale price vide receipt No. 70 dated 7.2.2001 and the balance amount of Rs. 1,96,875 on 5.3.2001 so, as to make 25% vide demand draft dated 5.3.2001 issued by State Bank of India, P
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