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DELHI STATE CONSUMER DISPUTES REDRESSAL COMMISSION, NEW DELHI
Dr. Sangita Dhingra Sehgal, (President) and Rajan Sharma, (Judicial Member)
Mr. Ravi Saxena —Complainant
versus
Shourya Towers Pvt. Ltd. (Formerly Known as Nitishree Infrastructure Ltd. and Ors. —Opp. Parties
Complaint Case No.404 of 2012
Decided on 31.3.2022

Advocates:
Counsel for the Parties:
For the Complainant: Alliance Law Group
For the Opp. Parties:Praveen Mahajan, Advocate

IMPORTANT POINTS
(1) Recurrent cause of action – Complainant has a recurrent cause of action till the possession of the plot is not handed over to him.
(2) 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, Section 24A – [Consumer Protection Act, 2019 – Section 47(1)] – Services – Real Estate – Allotment of Plot – “Recurrent cause of action” Limitation for filing compliant when plot is not handed over – Whether this complaint is within the period of limitation as prescribed in the Consumer Protection Act, 1986 – Commission is empowered to admit a complaint if it is filed within a period of 2 years from the date on which cause of action has arisen – It is clear that the possession of the said plot in question is still not handed over by the opposite party No. 1 to the complainant. Applying the above law, it is clear that the complainant has a recurrent cause of action till the possession of the plot is not handed over to him. Therefore, the present complaint filed by the complainant is within the period of limitation. [Para 11]

(ii) Consumer Protection Act, 1986 – S.17, Section 24A – [Consumer Protection Act, 2019 – Section 47(1)] – Services – Real Estate – Allotment of Plot – Jurisdiction of Commission – In a case where value of goods along with the compensation is more than twenty lakhs and less than One Crore – Whether commission has the jurisdiction to adjudicate the present complaint – Commission shall have the pecuniary jurisdiction in cases where value of goods along with the compensation is more than twenty lakhs and less than One Crore. Moreover, Clause 17(2) of the Act provides the extent of territorial jurisdiction, wherein it has been provided that the state commission shall have the jurisdiction to entertain cases where opposite party at the time of the institution of the complaint, actually and voluntarily resides or carries on business or has a branch office or personally works for gain or the cause of action arose – The facts of the present case reflect that the value of the plot and the compensation prayed for by the complainant is beyond Rs. 20 Lakhs but does not exceed Rs. 1 Crore, accordingly, this commission has the pecuniary jurisdiction to deal with the present complaint – Since the registered office falls within the territory of Delhi, this commission has the territorial jurisdiction to adjudicate the case – Thus, Commission has territorial and pecuniary

jurisdiction. [Para 14].

(iii) Consumer Protection Act, 1986 – Section 17, Section 24A – [Consumer Protection Act, 2019 – Section 47(1)] – Services – Real Estate – Allotment of Plot – Whether Complainant Falls in The Category of ‘Consumer’ Under The Consumer Protection Act, 1986 – Commercial Purpose – Allegation of – It is for the Opposite Party to prove that the plot purchased was for commercial purpose, by way of some documentary proof and a mere bald statement is not sufficient to raise adverse inference against the Complainant – In the present case, the Opposite Parties have merely made a statement that the Complainant purchased the said plot for commercial purpose and on perusal of the record before Commission, also, Commissions 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. Mere allegation, that the purchase of the property is for commercial purpose, cannot be the ground to reject the present consumer complaint. [Paras 18, 19]

(iv) Consumer Protection Act, 1986 – Section 17, Section 24A – [Consumer Protection Act, 2019 – Section 47(1)] – Services – Real Estate – Allotment of Plot – Whether the Opposite Parties are actually deficient in providing its services to the Complainant or not – It is clear that if the possession in a builder buyer agreement is delivered beyond 42 months or 48 months, then there is deficiency of service on the part of builder. In the present case, we find that the possession of the plot in question was not yet delivered by the opposite party and a period of around 11 years (approx.) had passed from the date of booking i.e. 07.06.2006. Therefore, the deficiency on the part of opposite party No. 1 stands proved, hence, the opposite party no. 1 is guilty of deficiency in providing its services to the complainant. [Para 22].

(v) Consumer Protection Act, 1986 – Section 17, Section 24A – [Consumer Protection Act, 2019 – S.47(1)] – Services – Real Estate – Allotment of Plot – Refund – whether refund can be awarded in the present case as the complainant had prayed for possession of the plot – Opposite Party No. 1 failed to hand over the possession of the said plot even after receiving the amount of Rs. 5,20,000/- – In these circumstances, it appears that the Opposite Party No. 1 is not in a position to handover the plot in question to the complainant. Therefore, as per the facts and circumstances of the present case, we are of the view that it is justified to refund the amount already paid by the complainant – Thus, direct the Opposite Party no. 1 to refund the entire amount paid by the complainant i.e. Rs. 5,20,000/- along with interest. [Para 25].

Result: Complaint Allowed.

JUDGMENT

Dr. Sangita Dhingra Sehgal, (President).—The present complaint has been filed by the complainant before this commission alleging deficiency of service and unfair trade practice by the opposite parties and has prayed the following:

(a) Direct the Respondents to deliver possession of the Plot No. G 1380 situated at NH 24 Shauryapuram, Ghaziabad, UP; and

(b) Quash the demand of Rs. 13,54,097.00 (Rupees Thirteen Lakhs Fifty-Four Thousand Ninety-Seven Only) raised by the Respondents and declare the same to be unreasonable and void.

(c) Direct the Respondent to pay the Complainant an amount of Rs. 1,69,263/- and further interest to be calculated at the rate of 24% per annum from the date of deposit and till the time of handing over of the possession together with pendente-lite and future interest.

(d) Direct the respondent to pay the complainant an amount of Rs. 10,00,000 (Rupees Ten lakhs Only) as compensation and damages on various counts suffered by the Complainant due to wilful breach of contract and deficiency in service committed by Respondents, which has led to untold agony, misery, harassment, loss of profit, loss of reputation and esteem etc.

(e) Award cost.

(f) Pass such other or further order(s) as this Hon’ble Court may deem fit and proper to meet the ends of justice.

(g) In total sum of Rs. 25,23,360/- (Twenty-Five Lacs, Twenty-Three Thousand, Three Hundred and Sixty)

2. Brief facts necessary for the adjudication of the present complaint are that in the year 2006, the Complainant booked a 240 sq yards plot in the upcoming projects of Opposite Party no. 1 at Meerut Road, Ghaziabad. While booking the Opposite party no. 1 assured the complainant that the possession of the plot will be given within a year. The complainant paid the booking amount of Rs. 1,00,000 (Rupees One Lakhs Only). After lapse of one year, the opposite party no. 1 informed the complainant that the construction work cannot commence on the said site and possession of the allotted plot cannot be handed over as the Ghaziabad Development Authority had not given necessary approvals to the Opposite Party to build the said project on the said land. Feeling aggrieved by the default in handing over the possession of the plot, the Complainant requested the opposite parties to refund the amount paid by him with interest at the rate of 24% per annum. However, the opposite party refused to refund the said amount and in alternate offered the Complainant another plot bearing no. G-1380 in Shouryapuram” at NH 24, Ghaziabad, UP. The complainant accepted the alternate flat offered by the complainant and paid Rs. 2,20,000/- to the Opposite Party no. 1. The total price of the plot as agreed and subsequently incorporated in the allotment letter was Rs.15,00,712.50 including preferential location charges, extra development charges and interest free maintenance charges amounting to Rs. 2,39,837.50. The allotment letter also acknowledged the special discount of Rs. 8,00,000 given to the Complainant as a compensation for breach of its earlier commitment. The opposite parties also assured the complainant again to handover the possession of the plot by December 2008 but till date no possession has been delivered by the opposite party no. 1 to the complainant.

3. Moreover, on 20.06.2012, the opposite party no. 1 arbitrarily demanded a sum of Rs. 13,54,097 within a period of 15 days. The opposite party no. 1 without any prior intimation to the Complainant increased the original agreed total cost of the said Plot from Rs. 15,00,712.50 to Rs.22,23,625. Upon receiving the said letter, the complainant sent various communications to the opposite parties but was of no avail. The complainant over the time had paid a sum a Rs. 5,20,000/- to the opposite party no. 1 as and when demanded by it.

4. The Opposite Parties contested the present case and raised preliminary objections as to the maintainability of the complaint case. The counsel of the Opposite Parties submitted that

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