NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION, NEW DELHI
Ram Surat Ram Maurya, Presiding Member and Dr. Inder Jit Singh, Member
Brig. Dipendra Rawat —Complainant
versus
Emaar MGF Land Ltd. —Opp. Party
Consumer Case No.582 of 2018
Decided on 30.9.2022
Consumer Protection Act, 1986—S. 12(1)(a)[Consumer Protection Act, 2019 —S.35(1)(a)] – Services – Real Estate – Allotment of Flat – Delayed Possession – 2 years - Continuing cause of action - Complaint has been filed for alleged delay in delivery of possession - The objection that the Complaint is barred by limitation is also not accepted. The OP has failed to deliver the possession of the unit to the complainant till date and therefore, the cause of action is continuing. The contention that complainant is not a consumer as he has purchased the unit for commercial purpose is also rejected as no such evidence has been adduced by the OP in this regard. The plea of OP that delay was due to force majeure circumstances has some weight. The construction was entrusted to M/s IL & FS, who was a well established/reputed company at that time, but did not deliver as per agreed time lines, and later on insolvency proceedings were initiated against the M/s IL & FS. The offer of possession was given after obtaining occupation certificate, but with a delay of about 2 and a half years from the committed date of possession as per the agreement, which according to OP is not unreasonable in view of the circumstances beyond their control. Hence, this complainant is liable to take the possession and not entitled for refund - The OP shall deliver physical possession of the unit/flat in question, as per the specifications and along with all the facilities and amenities as promised in the brochure and/or agreed to in the agreement, complete in all respects, within three months from the date of this order, subject to payment of balance due amount and completion of the formalities as per the agreement – Compliant is allowed. [Paras 9,10]
Result: Compliant allowed.
ORDER
Dr. Inder Jit Singh, Member—The present Consumer Complaint (CC) has been filed under Section 12 of the Consumer Protection Act,1986( for short ‘the Act’) by the Complainant against Opposite party (OP) as detailed above, inter alia praying for:—
(i) To direct OP to refund Rs. 88,58,937/- along with interest @ 24 % p.a. from the date of each payment by the Complainant, the rate at which, the OP has collected the late payment from the Complainant.
(ii) Or in alternative, direct the OP to deliver fully completed unit to Complainant along with compensation for delay w.e.f. 08.08.2015 calculated @ 24% p.a. on amount deposited by the Complainant.
(iii) To direct OP to pay Rs.10 lakhs as compensation towards mental agony and harassment to the Complainant.
2. Notice was issued to OP on 13.08.2018, giving them 30 days time to file written statement.
3. It is averred in the Complaint that:—
(i) The complainant booked a residential apartment with the OP in a project namely ‘Palm Gardens’ which the OP was to develop in Sector 83 of Gurgaon. The booking was made on 23.4.2011 paying a booking amount of Rs.7,50,000. After allotment of a residential apartment bearing No. 05/202 to the complainant the parties executed an agreement on 30.05.2011, incorporating their respective obligations in respect of the said transaction. As per the Buyers agreement (hereinafter referred to as agreement), the possession was proposed to be handed over to the complainant within thirty six months from the start of construction. A grace period of three months was also available to the OP. The construction as per the brochure, which the OP had issued in respect of the said project, started on 09.08.2012. It was also stated in the brochure that the construction was progressing as per schedule and the expected delivery was 08.08.2015. The grievance of the complainant is that the possession has not been offered to him and the construction is not complete, despite he having paid Rs. 88,58,937/- out of the agreed sale consideration of Rs. 93,51,388/-.
(ii) OP have used their dominant position and arbitrarily imposed illegal demands for payments i.e on exorbitant interest of 24% p.a. on delayed payments, the said unit and other amenities promised were not ready for possession.
(iii) It is averred that the Complainant has issued legal notice dated 08.08.2017 to OP, however no reply of said letter has been given by OP.
(iv) It is further averred that cause of action arose on April, 2011 when the Complainant booked the unit and is continuing till date.
(v) The conduct of the OP falls under the definition of unfair trade practices and deficiency in services.
4. The OP in their written statement/reply stated that:—
(i) This commission lacks pecuniary jurisdiction and the complainant has inflated the amount in order to reach the jurisdiction.
(ii) Clause 32 of the agreement states that any dispute arising between the parties shall be settled through arbitration.
(iii) The Complainant has bought the flat for investment purpose and cannot be termed as Consumer under the said Act, and the burden of proof lies on the consumer to prove whether he has bought the unit for commercial purpose or investment purpose, which has not been disclosed by the Complainant.
(iv) They could not complete the construction due to unavaiodable force majeure circumstances and slow work by the Infrastructure Leasing and Finance Ltd. (to whom the construction work was entrusted). Further insolvency proceedings against IL&FL, were admitted in NCLT, Mumbai which led to the delay in construction of the project.
(v) It is averred that this Commission cannot amend or modify the terms of the agreement, and the Complainant is praying for relief not mentioned in the agreement.
(vi) The present complaint is time barred as it is filed beyond the time prescribed under Section 24A of the Act.
Pioneer Urban Land & Infrastructure Ltd. vs. Govindan Raglivan
Default by Contractors - Complainant cannot be made to suffer on account of default by contractors engaged by OP.
Right to claim refund - the complainant in the present circumstances have a legitimate right to claim refund alongwith fair delay compensation/interest from the OP.
Delay in delivery of possession constitutes unfair trade practice under the Consumer Protection Act.
Failure to deliver property as promised in agreement constitutes grounds for claiming refund and compensation under consumer protection laws.
Flat Buyers Agreement—If timely payment of instalments is essence of contract, timely delivery of possession has to be essence—Complainant cannot be made to wait for an indefinite time and suffer fin....
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