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MAHARASHTRA STATE CONSUMER DISPUTES REDRESSAL COMMISSION, MUMBAI
P.B. JOSHI, PRESIDING JUDICIAL MEMBER, S.K. KAKADE, MEMBER
Narayan Prasad Goenka & Anr. – Appellant
Versus
Kingston Properties Pvt. Ltd. & Anr. – Respondents
Complaint Case No. CC/14/328
Decided on : 09-01-2019

Advocate Appeared:
For the Complainant :Mr. Uday B. Wavikar a/w Ms. Bhagyashree Dhamapurkar and Ms. Supriya Patil, Advocates.
For the Opponents :Mr. Ajay Pawar i/b Mr. A.V. Patwardhan, Advocates.

The statutory duty of the builder to execute the agreement upon accepting any amount and the entitlement of the flat purchasers to possession despite cancellation attempts by the builder.

Headnote:

Consumer Complaint - Flat Booking Dispute - Maharashtra Ownership Flats Act, 1963 - Section 4, Section 8 - The court found deficiency in service on the part of the opponents for not executing the agreement for sale despite accepting a partial payment. The court also held that the complainants were entitled to possession of the flat and awarded compensation for mental agony and incidental expenses.

Fact of the Case:

Complainants booked a flat with opponents for a total consideration of Rs. 38,32,000. They paid Rs. 1,91,600 but did not receive possession or an executed agreement. The opponents contended that the complaint was barred by limitation and that there was no deficiency on their part.

Finding of the Court:

The court found that the complaint was within limitation, there was deficiency in service on the part of opponents, and the complainants were entitled to possession of the flat. The court also ruled that the complainants were entitled to compensation for mental agony and incidental expenses. The court dismissed the claim for interest on the amount paid.

Issues: Limitation, Deficiency in Service, Entitlement to Possession, Interest, Compensation, Incidental Expenses

Ratio Decidendi: The court held that the opponents' failure to execute the agreement for sale despite accepting a partial payment constituted deficiency in service. The court also emphasized the statutory duty of the builder to execute the agreement upon accepting any amount. Additionally, the court ruled that the complainants were entitled to possession of the flat and awarded compensation for mental agony and incidental expenses.

Final Decision: The complaint was partly allowed, with the opponents directed to execute the agreement, pay compensation for mental agony, and cover the complainants' litigation costs.

ORDER :

Mr. P.B. Joshi, Presiding Judicial Member-We have heard submissions of Mr. Uday B. Wavikar, Advocate a/w. Ms. Bhagyashree Dhamapurkar, Advocate and Supriya Patil, Advocate for complainants and Mr. A.V. Patwardhan, Advocate and Mr. Ajay Pawar, Advocate for opponents.

2. It is necessary to note here that both these complainants had filed consumer complaint before the District Forum, Mumbai Suburban and it was numbered as CC/144 of 2005. However, that complaint was withdrawn by the complainants as the District Forum had no pecuniary jurisdiction. Permission was granted for withdrawal of complaint by the District Forum and thereafter, same complaint was filed before this State Commission without even changing title cause. It was necessary for the complainants to prepare a fresh complaint addressing to this Commission without changing facts of the case. However, complainants instead of doing that same complaint which was actually addressed to District Forum filed here in this Commission. However, even our office did not notice the same and registered the same.

3. Complainants booked a flat with opponents for total consideration of Rs. 38,32,000. Complainants paid Rs. 1,91,600 on 2.4.2004. No receipt for payment was issued. However, letter was issued by the opponents to the complainants mentioning about receipt of said amount out of total consideration of Rs. 38,32,000 for booking a flat and car parking space in a building ‘Oberoi Woods’ at Goregaon (East), Mumbai. As per complainant possession was to be given within eight months and balance was to be paid at the time of possession. It was contended that the opponents did not execute the agreement, did not hand over possession and hence there is deficiency on the part of opponents. It is because of that consumer complaint has been filed against the opponents with prayer that opponents be directed to hand over possession of the flat in the building “Oberoi Woods” situated at Goregaon (East), Mumbai–400 63. Complainants also prayed that opponents be directed to execute agreement in favour of complainants in respect of said flat and register it. Complainants also prayed that opponents be directed to obtain Occupation Certificate and Completion Certificate in respect of said building. Complainants prayed that opponents be directed to obtain water connection and electricity supply in respect of said flat and to provide all amenities. Complainants prayed that opponents be directed to pay interest @ 21% on the amount of Rs. 1,91,600. Complainants prayed that opponents be directed to pay Rs. 2 lakh towards compensation on account of mental agony suffered by the complainants and Rs. 50,000 towards incidental expenses incurred by the complainants.

4. Opponents resisted the complaint by filing written version which is at pages-101 to 115 of complaint compilation. Opponents have not disputed about booking of the flat, total consideration, part payment, however, contended that there is no deficiency on the part of opponents. It was contended that complainants had not paid remaining amount and hence, opponents cancelled the booking and returned the amount by way of cheque and hence, there is no question of giving possession of the flat to the complainants. Opponents also raised a plea of limitation that the complaint is barred by limitation. It was contended that there was no cause of action for filing consumer complaint. Opponents prayed for dismissal of complaint.

5. Considering the rival contentions of the parties, considering the record and keeping in view the scope of the complaint, following points arise for our determination and our findings thereon are noted for the reasons as below:

Sr. No.

 Points

Finding

1.

Whether complaint filed by the complainants is within limitation?

Yes

2.

Whether there is deficiency in service on the part of opponents?

Yes

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