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DELHI STATE CONSUMER DISPUTES REDRESSAL COMMISSION, NEW DELHI
Dr. Sangita Dhingra Sehgal, (President) and Rajan Sharma, Member (Judicial)
Mr. Rahul Jain —Complainant
versus
Parsvnath Developers Ltd. —Opp. Party
Complaint Case No.111 of 2013
Decided on 8.3.2022

Advocates:
Counsel for the Parties:
For the Complainant:Mr. Sumit Kaushal, Advocate
For the Opp. Party:Mr. Rakesh Bhardwaj, Advocate

IMPORTANT POINT
Commercial Purpose – Mere allegation, that the purchase of the property is for commercial purpose, cannot be the ground to reject the present consumer complaint.

Headnote:

(i) Consumer Protection Act, 1986 – Section 17 [Consumer Protection Act, 2019 – Section 47(1)] – Services – Real Estate – Jurisdiction of State Commission – Compliant has been filed for alleged delay in possession of flats – Whether The Complainant Falls Under The Definition of ‘Consumer’ As Per The Consumer Protection Act, 1986 – Mere allegation, that the purchase of the property is for commercial purpose, cannot be the ground to reject the present consumer complaint. [Para 12].

Held: In the present case, the Opposite Party has merely made a statement that the Complainant purchased the flat for commercial purpose and on perusal of the record court fails to find any material which shows that the Complainant is engaged in the business of purchasing and selling houses and/or plots on a regular basis, solely with a view to make profit by sale of such flats.

(ii) Consumer Protection Act, 1986 – Section 17 [Consumer Protection Act, 2019 – Section 47(1)] – Services – Real Estate – Jurisdiction of State Commission to adjudicate complicated questions of fact – the complaint falls within the four corners of the jurisdiction of this commission and there is no bar with respect to the jurisdiction of this commission to entertain cases related to the refund of amount deposited with the Opposite Party – Opposite Party failed to honour the terms of the agreement, aggrieved by which, the Complainant has approached this commission. Hence, the Complainant is entitled to file the present complaint before this commission since the Complainant is aggrieved by the deficient services of the Opposite Party i.e. the failure of the Opposite Party to handover the possession within a reasonable time period and it is only due to this reason, that the Complainant has approached this Commission, which this Commission is authorized to adjudicate. [Paras 17 to 20]

Held: Moreover, nothing cogent has been brought on record by the Opposite Party which would reflect that there are such complicated questions involved which cannot be settled on the basis of the pleadings filed on behalf of the contesting parties.

(iii) Consumer Protection Act, 1986 – Section 17 [Consumer Protection Act, 2019 – Section 47(1)] – Services – Real Estate – Contention that Complainant failed to make the payments prescribed as per the construction linked payment plan opted, despite service of various reminder letter – Cancellation made on basis of an unsigned/unexecuted agreement – Whether can be held to be valid – On perusal of the records and documents, we noted that no Provisional Allotment Letter dated 23.02.2007 has been produced by either party and the builder buyer agreement attached with the complaint is unsigned and undated, having only few details filled by the opposite party – Therefore, the agreement, Annexure ‘B’ attached with the complaint, cannot be taken into consideration in any manner as it has no evidentiary value – Therefore, the cancellation on relying upon the basis of an unsigned/unexecuted agreement is not valid and the opposite party is under the liability to refund the amount, already deposited by the Complainant for the apartment in question. [Para 22]

(iv) Consumer Protection Act, 1986 – Section 17 [Consumer Protection Act, 2019 – Section 47(1)] – Services – Real Estate – Whether the Opposite Party was actually deficient in providing its services to the complainant or not – On facts, the unsigned/unexecuted agreement between the parties, however, as per the first payment receipt dated 02.05.2006, issued by the Opposite Party in favor of the complainant, clearly shows that the first payment in regard to the said apartment in question has been made in the year 2006 – However, till date the possession of the Apartment has not provided by the Opposite Party to the Complainant. Moreover, it has been well settled that the Complainant cannot be expected to wait for an indefinite time period to get the benefits of the hard earned money which they have spent in order to purchase the property in question – Therefore, Opposite Party is deficient in providing its services to the Complainant as the Opposite Party had given false assurance to the complainant with respect to the time for delivery of possession of the apartment and had kept the hard earned money of the complainant for about 16 years – Thus, opposite party has also arbitrarily cancelled the allotment of the complainant and forfeited an amount equivalent to 15% of the basic price, which is not justified in the present case. [Paras 24 to 28]

Held: In addition to the aforesaid and taking into consideration the facts of the present case, the Opposite Party is directed to pay a sum of:

A. Rs. 1,00,000/- as cost for mental agony and harassment to the complainant; and

B. The litigation cost to the extent of Rs. 50,000/-.

Result: Complaint allowed.

JUDGMENT

Dr. Sangita Dhingra Sehgal, (President).—The present Complaint has been filed before this Commission under Section 17 of the Consumer Protection Act, 1986, by the Complainant alleging deficiency in service and Unfair Trade Practice on the part of Opposite Party and has prayed for the following reliefs:

(a) Direct the Opposite Party for the refund of the amounts paid by the complainant along with 18% p.a. from the dates of the respective payments;

(b) Take suitable action under law against the Opposite Party for knowingly and intentionally indulging into unfair trade practices and duping the innocent consumers of their hard earned money;

(c) Pass orders directing the Opposite Party to compensate and pay a sum of Rs. 10.00 Lac to the Complainant for the unnecessary mental harassment, agony, inconvenience and harassment caused to the Complainant by the Opposite Party;

(d) Pass orders directing the opposite party to pay litigation fee to the tune of Rs.55,000/- to the complainant;

(e) Any other order that this Hon’ble Commission may deem fit and proper under the fact and circumstances of the case may also be passed in favour of the Complainant and against the Opposite Party in the interest of Justice;

(f) the total amount is Rs. 56,81452.5/-.

2. Brief facts necessary for the adjudication of the present complaint are that the Complainant booked a 3 BHK apartment bearing no. T12-802, measuring 1855 sq. ft. with the Opposite Party in the project ‘Parsvnath Privilege’ situated at Greater Noida, U.P. Thereafter, a Provisional Allotment Letter dated 23.02.2007 was issued to the Complainant and subsequently an unsigned builder buyer agreement was given to the Complainant. In accordance with the provisions of the builder buyer agreement, the Opposite Party was bound to deliver the flat within 36 months from the date of commencement of construction of the particular block. The Complainant had opted for the construction linked plan and over the time had paid a sum of Rs. 22,24,256/- out of the total demand of Rs. 42,78,702/- raised by the Opposite Party. Thereafter, the Complainant visited the site, where the said project is situated and was shocked to see that the construction was not complete despite the passage of stipulated period provided in the builder buyer agreement. Also, the Opposite Party failed to provide any links for the construction and development of the said tower to the Complainant, therefore, the Complainant stopped paying the instalments demanded by the Opposite Party and demanded refund of money which was already paid by him but was of no avail.

3. Consequently, due to non payment of outstanding amount as per the opted plan, the Opposite Party vide letter dated 24.07.2013, cancelled the allotted flat of the Complainant. Thus, left with no other option, alleging deficiency of service and unfair trade practice on the part of the Opposite Party, the Complainant approached this commission.

4. The Opposite Parties have contested the present case and had raised preliminary objections as to the maintainability of the complaint case. The counsel of the Opposite Party submitted that the Complainant is not “Consumer” as defined under the Consumer Protection Act, 1986 as the said flat has been purchased for investment purpose in order to earn profit. The counsel for the Opposite Party further contended that the jurisdiction of this commission is barred as the matter involves complicated question of facts and law which is needed to be proved by detailed oral and documentary evidences.

5. The counsel of the Opposite Party further submitted that the Complainant has defaulted in making due payments as per the payment plan opted by the Complainant and therefore, the booking of the Complainant was cancelled vide letter dated 24.07.2013. Pressing the aforesaid objections, the counsel appearing on behalf of the Opposite Parties prayed that the complaint be dismissed.

6. The Complainant has filed the Rejoinder rebuttin

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