IMPORTANT POINT
Award of Interest - when interest is awarded as compensation then awarding additional compensation was not justified.

ORDER

Heard Mr. Naresh K. Daksh, Advocate, for the complainants and Mr. Shekhar G. Devasa, Advocate, for opposite party.

2. Above complaint has been filed for directing the opposite party to (a) refund Rs.15960114/- with interest @ Rs.150000/- per month from the date of deposit till its realization; or in alternative (b) hand over the possession of Flat No.N-1603, Block-5 located on 16th Floor having area of about 1710 sq. feet in project “Mantri Serenity” at land bearing Sy. No.57(P), 58 (P), 59(P) and 60(P) all situated at Doddakallasandra Village, Uttarahalli Hobli, Off Kanakapura Road, Bangalore South Taluk, Bengaluru along with all agreed infrastructure, amenities, fittings, fixtures an facilities within stipulated period and; (c) to award an amount of Rs.4950000/- being damages/penalty @18% per month since 01.01.2016 till 30.09.2018 and also award sum of Rs.150000/- per month since 01.10.2018 till the date of handing over possession of flat after completion in all respect; (d) to award a sum of Rs.2000000/- in favour of complainants and against opposite party towards compensation for negligent, deficient and unfair trade services and practices of the opposite party and also for causing immense tension, harassment, agonies etc. to the complainants due to non-receipt of possession of flat and enjoyment of their ownership and property; (e) to award the amount of Rs.55000/- towards litigation cost; and/or (f) any other relief which may be deemed fit and proper in the facts and circumstances of the case.

3. The complainants stated that M/s. Mantri Castles Private Limited (the opposite party) (the developer) was a company, incorporated under the Companies Act, 1956 and engaged in the business of development and construction of group housing project and selling its unit to the prospective buyers. The developer launched a project of group housing in the name of “Mantri Serenity” at land bearing Sy. No.57(P), 58 (P), 59(P) and 60(P) all situated at Doddakallasandra Village, Uttarahalli Hobli, Off Kanakapura Road, Bangalore South Taluk, Bengaluru, in the year 2012. The developer widely advertised the project and represented for on time delivery of possession and world class modern facilities and amenities including temperature controlled indoor swimming pool with Jacuzzi. Believing upon the representation and tall promises of the developer, the complainants booked one 3BHK flat on 21.04.2013. The developer allotted Flat No.-N-1603 (super built up area 1710 sq.ft., land cost Rs.5369400/- and construction cost Rs.5369400/-) to the complainants. The developer and the owner executed an Agreement for Sale dated 08.05.2013, in respect of undivided proportionate saleable area and the developer executed a Construction Agreement dated 08.05.2013, in favour of the complainant, for construction of above flat. Schedule-B-1 provided date of possession as 31.12.2015. The builder offered to pay EMI to the bank till delivery of possession, in case, 95% of sale price is paid before 31.05.2013. The complainants deposited Rs.1060625/- on 27.04.2013, Rs.1059437/- on 27.05.2013 and Rs.7867000/- on 31.05.2013. For deposit of last instalment, the complainants took loan from ICICI Bank. The developer neither complete the construction nor offered possession on due date. From October, 2017, the developer stopped payment of bank interest on the loan. The complainants gave a legal notice dated 18.06.2018, calling upon the builder either to handover possession of the flat complete in all respect as per specification along with delayed compensation within 7 days of service of the notice or refund his entire amount along with interest @18% per annum, which was served on 27.06.2018. The developer vide their reply notice dated 17.09.2018, informed that the construction could not be completed for the reasons beyond their control and they informed that they may be able to handover possession till January, 2020. Thereafter, this complaint was filed on 18.11.2018.

4.