MAHARASHTRA STATE CONSUMER DISPUTE REDRESSAL COMMISSION, BOMBAY
S.P. Tavade, President and S.T. Barne, Judicial Member
Sudhakar Kondaji Jadhav – Complainant
versus
Pavan Patil – Respondent
Consumer Complaint No.1380 of 2017
Decided on 12.7.2022
Consumer Protection Act, 1986 – S.17[Consumer Protection Act, 2019 – S.47(1)] – Services – Real Estate – Allotment/ Execution of Sale Deed / Delay in handing over of possession of Flat – Complaint has been field for the alleged delay in allotment of the Flat - It reveals from the evidence that, opponent though accepted the amount of booking and substantial consideration against purchase of flat he failed to execute the agreement to sale, as required under Sec.4 of MOFA Act, when received more than 20 % of the amount. Thus, the opponent committed deficiency in service - Further the opponent avoided to give response to the request of complainant to execute the sale deed and to handover the possession in spite of complete of construction by using huge amount of complainant, adopted unfair trade practice - Thus, the opponent in spite of issuance of notice by complainant failed to give response to it and made him to file this consumer complaint and thereby caused mental agony to the complainant and also deprived him from enjoying the flat. He was constrained to live in rental premises - The complainant though claimed that he is required to say in rental premises, and that the opponent has given the flat on rent for one year to someone else and earned profit – Complaint is allowed. [Paras 6 to 7]
The complainant shall deposit balance consideration of Rs. 85,000/- payable to opponent as against agreed amount of flat, within one month from the date of receipt of this order, with this Commission under intimation to opponent. The opponent shall execute the sale deed in respect of flat.
Result: Complaint allowed.
JUDGMENT
S.T. Barne, Judicial Member—The complainant Sudhakar Kondaji Jadhav, has filed this consumer complaint under section 17 of Consumer Protection Act 1986. The complainant is resident of Tagore Nagar, Vikhroli, East Mumbai-40083. The opponent is Builder and developer. He is carrying proprietory business as a Builder and developer in the name and style as M/s Navnath Construction. In the year 2013 the opponent started his new project at Sagarali Village Dombivali (East) District Thane. He made advertisement for sale of flats in the said building named as “Shiv Prerana” building. The complainant approached the opponent. The opponent has shown him papers of said project and explained the details about Prerana building. The opponent also assured that he would hand over the possession within 1 year once the construction is over. On believing the assurance of opponent the complainant booked the flat of 555 square feet area, situated on second floor in “B” wing of the said building at the rate of Rs.3000/- per square feet, for total consideration of Rs.16,65,000/-.
2. It is further contention of complainant that he has paid Rs.5,00,000/- towards booking amount on 20.01.2013. The opponent has also issued receipt regarding the same. Thereafter the complainant from time to time made payment of Rs. 9,50,000/- to the opponent by cheque. The opponent also issued receipt for the same. The complainant thereupon requested the opponent to execute registered agreement to sale. Then the opponent called the complainant in the month of December 2015 and asked him to make payment of balance amount in cash. As the complainant had already paid major amount, he has made further payment of Rs.1,30,000/- in cash to the opponent. However the opponent has not issued the receipt regarding the same. Thus, only amount of Rs. 85,000/- remained to be paid to opposite party
3. It is the contention of complainant that he has from time to time requested the opponent to execute the sale deed. However, he avoided to execute the registered agreement. The complaint has paid substantial amount to opponent and also was ready to pay balance amount of Rs.85,000/-. However, the opponent refused to hand over the possession of said flat to the complainant. The opponent has used the huge amount of complainant in the said project. The construction of flat no.205 is ready since January 2016. The complainant is trying to meet the opponent. However the opponent is not responding the complainant. The complainant is residing in rented premises and paying rent in spite of paying huge amount for purchase of flat since January 2016. The complainant therefore issued notice to the opponent on 22.08.2017 and called upon him to enter into registered agreement for sale (or sale deed) and to handover the possession by accepting the balance amount of Rs.85,000/-. However, the opponent avoided to give response to the complainant. The opponent has also earned rent fir one year by illegally giving possession of said flat to someone else on rent. Hence, the complainant has filed this consumer complaint and claimed the possession of flat by executing the registered sale deed. And also claimed compensation towards mental agony of Rs. 7 Lakhs and cost of proceeding.
4. The opponent though served with the notice of consumer complaint remained absent before this Commission. Hence, our predecessor has passed order to proceed ex-party against the opponent.
5. The complainant in support of his contention has produced documents along with list exhibit 4. Those documents are at page number C4 to c 27 consisting of the payment receipts of payment made against the consideration of flat and also produced the copies of notices issued to opponent and its copy to police station, along with postal receipt and acknowledgement receipts.
6. The complainant has also submitted affidavit of evidence in support of his consumer complaint as well as written notes of argument. The opponent has not come forward to c
Transaction of sale in question not covered under consumer protection laws; complainant entitled to refund of payment made.
The court established that failure to execute a sale agreement and delay in possession amounts to deficiency in service under consumer protection laws.
A developer cannot indefinitely delay project completion or provide inferior construction contrary to the agreement; in such cases, a consumer is entitled to a refund of their payments if the develop....
Non-delivery of possession within stipulated period, after receipt of consideration of amount, amounts to deficiency in service as well as unfair trade practice.
Non-delivery of possession within stipulated period, after receipt of consideration of amount, amounts to deficiency in service as well as unfair trade practice.
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