SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION, NEW DELHI
R.K. Agrawal, President and Dr. S.M. Kantikar, Member
Bushan Chimanlal Jain and Ors. —Appellants
versus
City & Industrial Development Corporation
of Maharashtra Ltd. (CIDCO Ltd.)
and Ors. —Respondents
First Appeal No.300 of 2013, First Appeal No.301 of 2013 and First Appeal No.302 of 2013
Decided on 20.1.2021

Advocates:
Counsel for the Parties:
For the Appellants: Mr. Bhushan Chimanlal Jain, In person, (In FA No.300 / 2013 and AR (in FA 301 & 302 / 2012)
For the Respondents:Mr. Ajit S. Bhasme, Advocate

IMPORTANT POINT
Not providing correct, rectified and complete documents to allottee amounts to deficiency in service on part of development authority.

Headnote:

Consumer Protection Act, 1986—Section 19 : [Consumer Protection Act, 2019—Section 41]—Allotment of flat—Cancellation—Legality of—Allotment of flat made in favour of complainant cancelled for default in payment of instalments—Because of non-issuance of corrected and error-free allotment documents complainant could not obtain home loan by mortgage to secure repayment of instalment—CIDCO could not provide rectified allotment letter—Defective allotment letters not accepted by the financial institutions and to secure loan for payment of balance sale consideration—Thus, complainants cannot be held liable for default in making the payment of instalments—CIDCO admittedly could not issue allotment letter afresh by mentioning name of individual allottee and not in joint names—Deficiency in service found on part of CIDCO by not providing the correct, rectified and complete allotment documents to complainants—Impugned order of State commission set aside—CIDCO directed to restores the cancelled apartments is the individual names of complainant—Further directions issued. (Paras 12 to 18)

Result: Appeals allowed.

ORDER

The challenge in these First Appeals, filed under Section 19 of the Consumer Protection Act, 1986 (hereinafter referred to as “the Act”), is to the Order dated 24.01.2013 in Complaint Case Nos. 70, 71 & 72 of 2010 passed by the Maharashtra State Consumer Disputes Redressal Commission (hereinafter to be referred to as “State Commission”), whereby the Complaints filed by the Complainants were dismissed with cost of Rs. 25,000/- to be paid to the Opposite Party No.1, “The City and Industrial Development Corporation of Maharashtra”.

2. Since the facts and question of law involved in these Appeals are similar except for minor variations in the flat numbers and their sale consideration, these Appeals are being disposed of by this common Order. However, for the sake of convenience, First Appeal No. 300 of 2013 is treated as the lead case and the facts enumerated hereinafter are taken from Complaint No. 70 of 2010.

3. Briefly stated the facts as narrated in the Complaint are that the Opposite Party No. 1, namely, ‘The City and Industrial Development Corporation of Maharashtra Ltd.’ (hereinafter referred to as ‘CIDCO’) is a limited company duly registered under the Companies Act and engaged in development of new township at Navi Mumbai as a part of its housing Project; Opposite Party No. 2 is the Managing Director of CIDCO; Opposite Party No. 3 is the Marketing Manager-1 working with CIDCO and Opposite Party No. 4 is State of Maharashtra which is a formal party in the Complaint. The CIDCO proposed a housing Project under the name and style of “Seawoods Estate”, Phase-II, Part - I&II” situated at Sector - 54, 56, 58, Nerul (West), Navi Mumbai. The Complainant by depositing a sum of Rs.5,000/- towards Demand Registration Charges (DRC) booked his demand for an Apartment in the said Project with CIDCO on 19.11.2004.In the year 2007, the Complainant came to know about release of allotment of “Seawoods Estate Phase-II (Part-1)” to the registration holders. Since the Complainant was a registration holder, he applied for the allotment of apartment and deposited Rs.6,00,000/- towards earnest money with CIDCO.CIDCO allotted Apartment No. 303, third floor in Building No. 52 [B-NL-SW2-52-303], admeasuring 1230.610 sq. ft. at Rs.3,700/- per sq. ft. to the Complainant vide Allotment Letter dated 05.10.2007.According to Allotment Letter total sale consideration was Rs.45,53,257/- and after adjusting the Demand Registration Charges and Earnest Money, the balance amount of Rs.39,48,257 was payable in four installments of Rs.9,87,064/- each, scheduled to be paid on 04.01.2008, 04.04.2008, 04.07.2008 and 03.10.2008.The Complainant alleged that he had applied for Apartment solely in his name despite that CIDCO wrongly issued the Allotment Letter and the Permission Letter to mortgage the Apartment for obtaining housing loan, in joint names of Bushan Chimanlal Jain & Veena Bushan Jain. The Complainant sent letter dated 08.10.2007 to CIDCO and objected the same and brought the said lapses to their knowledge and requested to issue correct Allotment Letter. CIDCO vide letter dated 31.12.2007 informed the Complainant that “your request for correcting the name in the allotment letter, NOC for loan and the payment has been considered and accordingly the necessary corrections have been made in our record. It is also stated that the said letter be treated as amendment to the original document already issued to him. The Complainant alleged that in the subject of the said letter CIDCO has mentioned Apartment No. B-NL-SW2-48-1303 instead of B-NL-SW2-52-303. The Complainant approached CIDCO Office in the middle of January 2008 to satisfy his doubts. On the advice and instruction of the Assistant Marketing Manager-1, CIDCO, the Complainant paid Rs.200/- towards the administrative fees for the procurement of fresh allotment documents and pending receipt of earnest money deposited. The Complainant alleged that despite his repeated requests and depositing fees of Rs.

Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top