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NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION, NEW DELHI
C. Viswanath, Presiding Member and Ram Surat Ram Maurya, Member
K. Madhusudhan Rao —Complainant
versus
M/s Lodha Healthy Constructions
& Developers Pvt. Ltd. (LHCPL)
and Anr. —Opp. Parties
Consumer Case No.150 of 2013
Decided on 1.7.2022

Counsel for the Parties:
For the Complainant:Mr. Venkateshwar Rao Anumolu, Advocate
For the Opp. Party No.2:Ms. Neha Gupta and Mr. Rishabh Sahu, Advocates

IMPORTANT POINTS
(1) Delayed Construction - There was no evidence of any lock-out or strike by the labour at the site of the project. There was no civil commotion, war, enemy action, terrorist action, earthquake or any act of God which could have delayed the construction of the project.
(2) Possession - A consumer cannot be kept to wait for taking possession of the apartment.


Headnote:

(a) Consumer Protection Act, 1986 –S.21(1)(a)(i)[Consumer Protection Act, 2019 – S.58(1)(a)(i)] – Services – Real Estate – Allotment of Flat – Delayed Possession - Complaint filed for alleged delay in possession of Flat – The preliminary objection of the Opposite Party, that the dispute in the Complaint is barred due to existence of contractual relation between the Parties, does not stand – It is settled law that the remedy under the Consumer Protection Act is an additional remedy and is not curtailed due to any specific law – Therefore, the Complainant is a “Consumer” and the Complaint filed by the Complainant is maintainable. The Consumer Protection Act was enacted, inter alia, “to provide for better protection of the interest of the consumer”; to promote and protect the rights of consumers such as “the rights to seek redressal against unfair trade practices or unscrupulous exploitation of consumers”. [Para 14]

(B) Consumer Protection Act, 1986 –S.21(1)(a)(i)[Consumer Protection Act, 2019 – S.58(1)(a)(i)] – Services – Real Estate – Allotment of Flat – Delayed Possession – Refund of Amount - unforeseen and unexpected event – Proof of – The ground taken by the Opposite Party No. 1 that the delay was due to force majeure circumstances – “lock-out or strike by the labour” if can be ground for delayed possession – Deficiency of Service – The ground taken by the Opposite Party No. 1 that the delay was due to force majeure circumstances is devoid of merit – There was no evidence of any lock-out or strike by the labour at the site of the project. There was no civil commotion, war, enemy action, terrorist action, earthquake or any act of God which could have delayed the construction of the project. The Opposite Party merely narrated a set of events and obstacles which are routinely faced by project developers – The Opposite Party failed to prove that there was any unforeseen and unexpected event which prevented the completion of the Project within the stipulated time period - The Complainant paid substantial amount of total consideration – Therefore, homebuyers’ cannot be made to wait indefinitely for possession of the flat. Opposite Party No.1 failed to produce any evidence to the effect that the delay had occurred due to force majeure conditions – Thus, a consumer cannot be kept to wait for taking possession of the apartment. In these circumstances, the respondent flat purchaser was entitled for the relief prayed i.e. refund of the entire amount deposited alongwith compensation – Therefore, Opposite Party No.2 is deficient in service in disbursing the loan amount to Opposite Party No.1 without verifying the stage of construction - Complaint is partly allowed. Opposite Party No.1 is directed to refund the entire amount deposited by the Complainant with interest @ 9% p.a. [Para 15 to 20].

Result: Complaint partly allowed.

ORDER

The present Complaint is filed under Section 21(a)(1) of the Consumer Protection Act, 1986.

2. The Complainant is a non-resident Indian. Opposite Party No.1 is a developer and Opposite Party No.2 is a Bank. The case of the Complainant is that on 08.08.2009 he booked Apartment No.800 on 8th floor in “Beverly Hills Tower in Lodha Bellezza Complex” Kukatpally Hyderabad having a carpet area of 3282 sq. ft. along with 3 car parking for a total consideration of Rs.2,30,73,876 launched by Opposite Party No.1, by paying an advance of Rs.4,50,000/-. Thereafter, the Complainant paid two instalments of Rs.22,45,288/- and Rs.24,16,288/- on 25.08.2009 and 30.09.2009 respectively. The Complainant, thus, paid an amount Rs.51,11,576/-, which was 22 % of the total sale consideration. After receiving the payment, Opposite Party No. 1 sent the Agreement for Sale dated 21.10.2009.

3. According to the Complainant, Opposite Party No. 2 was major shareholder of the Project and offered housing loan to all purchasers. The Complainant applied for housing loan with Opposite Party No.2 who, vide letter dated 27.11.2009, approved the Housing loan of Rs.2,00,00,000/-. The Complainant accepted the Housing loan, after which a Tripartite Agreement dated 30.01.2010 was executed between the Complainant, Opposite Party No. 1 and Opposite Party No. 2. Payment would be directly disbursed by the Opposite Party No. 2 to Opposite Party No. 1 after satisfying itself regarding the progress of construction. The Complainant also entered into housing loan agreement dated 01.02.2010 with Opposite Party No. 2.

4. Opposite Party No. 2 disbursed all the 13 installments, amounting to Rs.1,68,80,531/- without verifying the progress of construction. The details of payment made to the Opposite Party No. 1 are as under:—

Payment made on report of progress of construction

Date of Payment

Cheque No.

Paid through

Amount Paid (Rs)

Booking Advance

08-Aug-09

487929

INGVYSYA

4.50,000

Within 21 days from booking

25-Aug-09

365929

HDFC

22,45,288

Within 51 days from booking

30-Sep-09

365931

HDFC

24,16,288

On initiation of the Footing (collected with basement slab payment on 01 February, 10)

 

 

 

 

On initiation of Basement B1 slab

01-Feb-10

Direct

By OP-2

22,45,288

On initiation of Plinth

25-Feb-10

Direct

By OP-2

22,45,288

On initiation of 2nd slab

31-Mar-10

Direct

By OP-2

11,22,644

On initiation of 5th slab

25-May-10

Direct

By OP-2

11,22,644

On initiation of 9th slab

30-Jun-10

Direct

By OP-2

11,22,644

On initiation of 12th slab

30-Jun-10

Direct

By OP-2

11,22,644

On initiation of 16th slab

12-Aug-10

Direct

By OP-2

11,51,552

On initiation of 19th slab

25-Sep-10

Direct

By OP-2

11,51,552

On initiation of 23rd slab

30-Nov-10

Direct

By OP-2

10,64,828

On initiation of 26th slab

20-Dec-10

Direct

By OP-2

11,22,644

On initiation of 30th slab

02-Feb-11

Direct

By OP-2

11,22,644

On initiation of Brickwork

21-Feb-11

Direct

By OP-2

11,22,644

On initiation of Internal Plaster

15-Jul-11

Direct

By OP-2

11,22,644

On account of additional amount collected (not explained by Opposite Party 1)

15-Jul-11

Direct

By OP-2

40,871

 

Total Amount

 

 

2,19,92,107

Opposite Party No.1 also charged interest @ 12% p.a. By July, 2011, the Complainant paid principal amount of Rs.21,992,107/- and Rs.9,824,600/- as interest, tota

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