NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION, NEW DELHI
Deepa Sharma, Presiding Member and Subhash Chandra, Member
M/s. TDI Infrastructure Ltd. – Appellant
versus
Ashish Gupta – Respondent
First Appeal No.126 of 2022
Decided on 21.7.2022
Consumer Protection Act, 1986 – S.19 [Consumer Protection Act, 2019 – S.51] – Appeal against order of State Commission - Services – Real Estate – Allotment of Flat – Delayed Possession – Demand of money for “Excess area” – “Super Area”- Test laid down for “Excess area” – Original approved commercial space and finally approved commercial space – Comparison to be provided - Whether Justified - In respect of excess area, the complainant has made a point that without any basis the opposite party sent the demand for excess area and the certificate of the architect was sent to the complainant, which is of a later date. The justification given by the opposite party that on the basis of the internal report of the architect the demand was made for excess area is not acceptable because no such report or any other document has been filed by the opposite party to prove the excess area. Once the original plan is approved by the competent authority, the areas of residential unit as well as of the common spaces and common buildings are specified and super area cannot change until there is change in either the area of the flat or in the area of any of the common buildings or the total area of the project (plot area) is changed - The real test for excess area would be that the opposite party should provide a comparison of the areas of the original approved common spaces and the flats with finally approved common spaces/ buildings and the flats. This has not been done - In fact, this is a common practice adopted by majority of builders/developers which is basically an unfair trade practice. This has become a means to extract extra money from the allottees at the time when allottee cannot leave the project as his substantial amount is locked in the project and he is about to take possession. There is no prevailing system when the competent authority which approves the plan issues some kind of certificate in respect of the extra super area at the final stage. There is no harm in communicating and charging for the extra area at the final stage but for the sake of transparency the opposite party must share the actual reason for increase in the super area based on the comparison of the originally approved buildings and finally approved buildings -Thus, the idea is that the allottee must know the change in the finally approved lay-out and areas of common spaces and the originally approved lay-out and areas – Therefore, the opposite party is not entitled to payment of any excess area. Though the Real Estate Regulation Act (RERA) 2016 has made it compulsory for the builders/developers to indicate the carpet area of the flat, however the problem of super area is not yet fully solved and further reforms are required – On facts, the findings of the State Commission which are based on the evidences and contentions before it cannot be said to be illegal findings or suffering with any infirmity – Appeal dismissed. [Paras 12 to 14].
Result: Appeal dismissed.
ORDER
The present Appeal has been filed against the order dated 14.01.2021 of the State Consumer Dispute Redressal Commission, Delhi (for short “the State Commission”) in Complaint No.638 of 2018.
2. The brief facts of the case are that the Respondent (hereinafter referred as “the Complainant”) booked a residential apartment in the project of the Appellant (hereinafter referred as “the Opposite Party”) called “Tuscan Heights” situated at Tuscan City, Kundli, District Sonipat Haryana. An allotment letter dated 18.08.2011 for unit No.T-7/0503, measuring 1520 sq. ft. was issued to him and he had paid a sum of Rs.3,50,000/- for the said purpose on 21.01.2010. A Builder Buyer Agreement was subsequently executed between the parties on 18.11.2011 for a total consideration of Rs.41,18,726/-.
3. The case of the Complainant was that he had paid a sum of Rs.39,80,699/- till the date of filing of the Complaint in the year 2018 and no offer of possession had been made to him, rather the Opposite Party had made untimely demands as car parking charges along with 14th instalment while the same was to be made at the time of possession. As per Clause 30 of the Builder Buyer Agreement, the possession was to be delivered within 30 months from the date of execution of the Agreement, i.e., by May 2014. He had also contended that the Opposite Party had unilaterally enhanced the area by 288.80 sq. ft. which was reflected in the final statement of account dated 03.03.2018 and the Opposite Party had wrongly charged additional amount of Rs.10,89,449/- for increased area. He had further contended that vide letter dated 10.04.2018, he had asked for explanation about the increased area and also mentioning about the delayed possession. He had further contended that even after eight years from the date of booking, the possession had not been offered to him and the project is under construction. He had further contended that the Opposite Party was deceitful, fraudulent and malicious from the very beginning and is guilty of unfair trade practice and there is deficiency in service on their part. He had paid approximately 96% of the total consideration by February 2017. Opposite Party had also used its position and strength in dictating one side terms. On these contentions, the Complainant had prayed for handing over of the possession of the apartment complete in all respects within six months of the date of filing of the Complaint and in case of failure on the part of the Opposite Party in handing over the possession within that period, for refund of the total amount paid by him along with interest @ 18% p.a., Rs.6,000/- per day for failure to provide the possession within the stipulated time, compensation of Rs.5 Lakh for mental agony, harassment, discomfort and undue hardships and Rs.1 Lakh towards litigation costs.
4. The Opposite Party before the State Commission was served on 16.01.2019 and put in appearance through Counsel Sh.Bhrigu Dhami. Copy of the Complaint was supplied to him and he was directed to file written version within 30 days. Written statement was, however, filed on 05.03.2019 which was beyond the statutory period of 30 days and the delay was condoned on the no objection of the Counsel for the Complainant on payment of costs of Rs.3,000/- vide order dated 05.03.2019. Since the Opposite Party failed to pay the costs by 24.10.2019, the Opposite Party was given one more opportunity to pay the costs by 13.03.2020. However, by that date also, the costs were not paid and vide order dated 13.03.2020, the written statement was taken off from the record. The Complainant filed its affidavit in evidence and also written arguments.
5. After hearing the arguments, the State Commission allowed the Complaint and ordered for refund of the deposited amount with interest @ 9% p.a.
6. This order is impugned before us on several counts. On the date of hearing, learned Counsel for the Complainant/Respondent was also present on caveat. Arguments of learned Counsel
“Excess Area” - The real test for excess area would be that the opposite party should provide a comparison of the areas of the original approved common spaces and the flats with finally approved comm....
Additional Payment – the demand of the Opposite Party for additional payment on account of the alleged increase in Super Area of the Flat was unjustified.
Consumer complaints regarding possession delays and super area increases must adhere to contract stipulations and reasonable compensation is eligible for delays in possession.
The court established that failure to provide promised amenities and delays in possession constitute unfair trade practices, entitling homebuyers to compensation and punitive interests under consumer....
(1) Contract - A term of a contract, will not be final and binding if it is shown that the consent to the said term was not really voluntary, if the person giving consent had no other choice. (2) Nom....
Super Built-up area – The alteration in super built up area in large projects including common areas is a common feature and is acceptable if is within a reasonable variable of 5 to 10%.
A purchaser of a commercial unit qualifies as a consumer if the acquisition is for self-employment or personal use. An offer of possession by a developer is invalid if it lacks clear legal documentat....
Deficiency in service occurs when contractual obligations regarding property delivery are not met, warranting compensation for delay and mental anguish.
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