NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION, NEW DELHI
Deepa Sharma, Presiding Member and Subhash Chandra, Member
M/s. Royal Build Square Pvt. Ltd
and Anr. —Appellants
versus
Kaushalya Memani —Respondent
First Appeal No.299 of 2018
(Against the Order dated 06/12/2017 in Complaint No. 17/2014 of the State Commission Rajasthan)
Decided on 24.6.2022
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 – Proper computation of Compensation “ Whether the State Commission has committed illegality by granting difference of the market rate of the flat or not – Thus the compensation payable to the complainant should not be calculated on the basis of the current ready reckoner price of the flat “ Appellants are directed to make payment of Rs.6,91,459/- to the complainant alongwith interest @9% p.a. from the dates of each deposits till the date of payment “ The complainant is also awarded litigation cost of Rs.25,000/- “ The entire money shall be paid by the appellants within three months from the date of order, failing which a penalty @ 12% p.a. shall be paid on deposited amount from the date of each deposit till payment. [Paras 7 to 12]
Result: Appeal disposed off.
ORDER (ORAL)
Final arguments heard on behalf of both the parties.
2. Vide this appeal, the appellants, who were the opposite parties before the State Commission, have challenged the order dated 06.12.2017 of the State Commission in C.C. No. 17 of 2014.
3. The brief admitted facts of the case are that the respondent, hereinafter be referred as complainant, had booked a flat in the project “Unique Green Acres” of the appellants in Jodhpur. On the basis of the map and documents of the project shown to the complainant, the complainant agreed to buy a flat on 12th Floor of the said project. The consideration amount of the flat was Rs.27,64,500/-. Out of this sum, on various dates, the complainant had paid a sum total of Rs.6,91,459/. Various receipts towards this payment had also been issued by the appellants. Flat No. F-1207 at the 12th Floor was allotted to the complainant. In the month of January, 2014, the complainant learnt that the appellant did not have approval to construct the 12th Floor of the project “Unique Green Acres” and that the appellants had mislead her into this project and thereby adopted unfair trade practices and had committed an act of cheating. Also there was no possibility of getting the approval to build the 12th floor of the said project. She had alleged that she was shown false and fabricated documents and false statement and promises were made to her. Thereafter the complaint was filed before the State Commission in which the complainant had prayed for the refund of the entire money. Besides that the complainant had also claimed a sum of Rs.16,66,610/- on the basis of current market rate. She also claimed Rs.20 lakhs towards mental agony and pain and Rs.25,000/- towards litigation cost and claimed interest @ 24%. Notice to this complaint was when sent to the appellants, they filed their written version. In the written version they had denied all the contentions except the fact that the complainant was their allottee and complainant had paid a sum of Rs.6,91,459/- on various dates. Parties lead their evidence before the State Commission and the State Commission after hearing the arguments on behalf of the parties and perusing the entire evidence on record, passed the following order:—
ORDER
In this situation the complaint of the complainant is accepted and the direction given to the respondents to make payment of Rs.6,91,459/- to the complainant alongwith interest @9% p.a. from the dates of deposition of said amount which was given for flat.
The respondent is directed to disburse the flat difference amount of Rs.16,66,610/- along with interest @ 9% to the complainant from the date of filing the complaint i.e. 09 May 2014.
The false commitment is made to the senior citizen to give flat and due to which the complainant has suffered mental agony for which the compensation amount of Rs.5,00,000/- and litigation cost of Rs.25,000/- also be directed to pay, interest @ 9% per annum shall be given if the amount not given within two months.
4. This order is impugned by the appellants before us on several counts in the appeal. However during the course of arguments learned counsel for the appellants, on instructions, confined his arguments on the relief relating to the payment of Rs.16,66,610/- along with interest @ 9% p.a. to the complainant, which the complainant had claimed as a difference of amount of flat as per market rate, and also the grant of compensation of Rs.5 lakhs towards mental agony.
5. We have heard the arguments of both the parties and have perused the record. In order to substantiate the arguments that the difference of the market rate value cannot be awarded by the Commission under Consumer Protection Act (C.P. Act) and therefore grant of Rs.16,66,610/- was an illegal order, the learned counsel for the appellants has relief on two orders of this Commission in the case of M/s Siraj Developers & Anr. Vs. Yasmin Razak Vanoo in F.A. No. 124 of 2015 decided on 15.11.2017 and M/s Lakadwala Develo
LAW POINTReady Reckoner – Compensation payable to the complainant should not be calculated on the basis of the current ready reckoner price of the flat.
Non-compliance with contractual obligations regarding refunds and unjustified deductions constitutes deficiency in service.
(1) Additional Alternate remedy – When a consumer avails such remedy, the lis has to be decided in its entirety. (2) Inseparable part of dispute – The dispute before it[State Commission] had to be de....
Flat Buyer’s Agreement – Denial of timely possession despite substantial payment – Payment of interest on refund of principal amount is necessary.
(1) Justified Withholding of Payments – An allottee is not necessarily “at fault” for stopping installments if it is evident that the builder is nowhere near completing the project by the committed d....
Just & equitable - the compensation has to be just and equitable, commensurate with the loss and injury suffered.
IMPORANT POINT Paper Possession – without obtaining completion certificate, offering possession is not a valid/legal possession and is only a paper-possession.
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