NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION, NEW DELHI
R.K. Agrawal, President
Amit Agarwal – Appellant
versus
Shree Vardhman Infrahome Pvt. Ltd. – Respondent
Execution Application No.99 of 2020 in
CC/1893/2017
Decided on 25.4.2022
Consumer Protection Act, 1986 – S.25[Consumer Protection Act, 2019- S.71] – Execution Application – Old Act – New Act – Which was prevalent at the time of filing of application - Subsequent applications - Whether Execution proceedings are separate and independent proceedings for execution of the decree are to be only filed under the new Act - The Execution Proceedings being separate proceedings and be filed under the Act which has been prevalent at the time of filing of the Execution Proceedings – In the present cases, the Execution Applications are filed under the Act, whether Old Act of 1986 or New Act of 2019, which was prevalent at the time of filing of the said Execution Applications. Therefore, the plea of the JD Developer that as the Complaint was decided under the Old Act, all the subsequent proceedings related to such Consumer Complaint including Execution Applications are to be filed under the Old Act, is rejected. [Para 22]
(ii) Consumer Protection Act, 1986 – S.25[Consumer Protection Act, 2019 - S.71] – Execution Application – Force Majeure – Covid-19 Pandemic – If can be a ground to get Occupancy Certificate in time – No specific direction in the said Order for extension of compliance of any Order passed by any Court/Tribunal - Non-compliance of Settlement Agreement - Developer relying upon Order dated 08.03.2021 passed by the Hon’ble Supreme Court in Suo Motu Writ Petition (Civil) No. 3 / 2020 - From a bare perusal of the Order dated 08.03.2021 passed by the Hon’ble Supreme Court in Suo Motu Writ Petition (Civil) No. 3 / 2020, it is crystal clear that there was direction with regard to computation of the period of limitation in filing of the Petitions/ applications/ suits/appeals/all other proceedings before any Court/Tribunal across the Country. There was no specific direction in the said Order for extension of compliance of any Order passed by any Court/Tribunal meaning thereby the Judgment Debtor cannot take the advantage of this Order in relation to their obligation in terms of the Settlement Agreement dated 15.01.2019 - The Executing Court cannot go behind the decree even if it be erroneous is still binding between the Parties - In the present cases, the Complaint was disposed off in view of the Settlement Agreement arrived at between the Parties vide Order dated 15.01.2019 and the Settlement Agreement is part and parcel of the Decree dated 15.01.2019. Undisputedly, the Opposite Party / JD Developer has miserably failed to comply with the terms of the Settlement Agreement by not achieving the milestone mentioned in Annexure C of the Settlement Agreement by 31.03.2020 and even failed to receive the O.C. by 31.08.2020, in view of which as per terms of the Settlement Agreement, the Decree Holders are entitled for refund of the amount with interest @12% p.a – Thus, Opposite Party / JD Developer is directed to refund the respective amount deposited by the Members/Decree Holders along with interest @12% p.a - Applications disposed off. [Paras 25 to 29]
Result: Application disposed off.
ORDER
R.K. Agrawal, President.—The present Execution Applications have been filed by the Complainants / Decree Holders against Shree Vardhman Infrahome Pvt. Ltd. (hereinafter referred to as the Opposite Party / JD Developer).
2. The Complainants/Decree Holders, being Members of the Flora Welfare Association, filed Consumer Case No. 1893/2017 titled Flora Welfare Association Vs. Shree Vardhman Infrahome Pvt. Ltd. before this Commission. In view of the Settlement Agreement between the Parties, the Complaint was disposed off vide Order dated 15.01.2019 in following terms:
“The matter has been settled between the parties. The learned counsel for the complainant, on instructions from Mr. Sangeet Bali, President of the complainant association who is present in the Court, seeks disposal of the complaint in terms of the written settlement dated 15.01.2019 which is annexed to the application IA No.894 of 2019 filed today in the Court for recording the settlement. The complaint is accordingly disposed of in terms of the settlement dated 15.01.2019 which shall form part of this order. It is also made clear that in case the OP offers to pay the balance payable in kind, such as through additional parking, additional power back-up etc. as per clause 4 and para 2 of the settlement, which shall be for the discretion of the concerned allottees whether to accept such balance in kind such as additional parking, additional power back-up etc. or not. In the event they are not agreeable to accept the said balance in kind, the OP shall pay the balance to them by way of Demand Drafts/bank transfers etc. It has also been agreed between the parties and is ordered accordingly that the aforesaid settlement would not be treated as a binding precedent”
3. As the Opposite Party/Judgment Debtor failed to satisfy the Decree dated 15.01.2019, all the Members of the Complainant Association had filed individual Execution Application seeking enforcement of the Decree dated 15.01.2019 as well as penalties to be imposed upon Judgment Debtor, Shree Vardhman Infrahome Private Limited and its directors for noncompliance with the Decree dated 15.01.2019.
4. Since the facts and question of law involved in all these Execution Applications are similar, these Execution Applications are being disposed off by this common Order.
5. The Opposite Party/Judgment Debtor has contested the Execution Applications by filing Replies/Objections, in which it was stated that the Complaint was filed by the Flora Welfare Association and the Settlement Agreement dated 15.01.2019 was executed between the said Association and the Opposite Party, therefore, the individual Member cannot be said to be a Decree holder and is not entitled for seeking execution of the Decree.
6. It was further submitted that some of the Execution Applications have been filed under the Consumer Protection Act, 2019 (for short the New Act) instead of Consumer Protection Act, 1986 (for short the Old Act). As the Complaint was decided under the Old Act as such all the subsequent proceedings related to such consumer Complaint including Execution Applications are to be filed under the Old Act. It was also stated that no proceedings under Section 27 of the Consumer Protection Act, 1986 can be initiated against the Opposite Party / JD Developer as the prayer which is necessarily required to be made for initiation of proceedings under Section 27 of the Act, has not been made in EA No. 99 and 100 of 2020. The Execution Application are not filed in accordance with mandatory provisions of law and as such same is liable to be dismissed.
7. It was further submitted that in the Settlement Agreement the principle understanding between the Parties was completion of project and delivery of possession of the respective flats. However, in certain contingencies the option of refund alongwith interest, was given to the Allottees merely to deter the Opposite Party / JD Developer against any willful default or negligence and to ensure t
1. EP Proceedings - The Execution Proceedings being separate proceedings and be filed under the Act which has been prevalent at the time of filing of the Execution Proceedings.2. Non Compliance of Or....
The JD Developer cannot evade responsibility for noncompliance due to force majeure claims when clear obligations exist under the settlement agreement.
Force majeure includes delays due to external restrictions, such as the COVID-19 pandemic and government bans, impacting contract compliance and obligations.
The court remanded the case to reconsider the plea of force majeure, recognizing the developer's claim of Covid-19 related delays in complying with a settlement agreement timeline.
Executing court cannot go behind decree to grant interest on rebates or entertain fresh claims on sale deed clauses or settled issues like club charges, strictly enforcing decree terms without enlarg....
Appeal Execution – The impugned Order against which the present Appeal Execution has been filed cannot be termed to be an Order passed under Section 17 of the Consumer Protection Act, 1986 at all.
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