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NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION, NEW DELHI
R.K. Agrawal, President and Dr. S.M. Kantikar, Member
Nagesh Maruti Utekar and Ors. – Complainants
versus
Sunstone Developers Joint Venture – Opp. Party
Consumer Case No.12 of 2017, Consumer Case No.13 of 2017, Consumer Case No.14 of 2017, Consumer Case No.145 of 2017, Consumer Case No.15 of 2017, Consumer Case No.16 of 2017, Consumer Case No.17 of 2017, Consumer Case No.19 of 2017, Consumer Case No.20 of 2017, Consumer Case No.21 of 2017, Consumer Case No.22 of 2017, Consumer Case No.23 of 2017, Consumer Case No.24 of 2017 and Consumer Case No.25 of 2017
Decided on 4.5.2022

Counsel for the Parties:
For the Complainants:Mr. Mohit Bhansali and Mr. Praveen Kalra, Advocates
For the Opp. Party:Mr. Sachin Datta, Sr. Advocate, Mr. Rajat Sehgal and Mr. Vikas Mehta, Advocates

IMPORTANT POINTS
(1) Unreasonable and unfair - The Complainant cannot be made bound to the terms of the Agreement, which are unreasonable and unfair.
(2) Dotted lines - A terms of a contract will not be final and binding if it is shown that the flat purchasers had no option but to sign on the dotted line, on a contract framed by the builder.


Headnote:

Consumer Protection Act, 1986 – S. 21(a)(i) – [Consumer Protection Act, 2019 – S.58(1)(a)(i)] – Services – Real Estate – Allotment of Flat / Plot – Delayed Possession – Builder Buyer Agreement – Dotted lines - incorporation of one sided clauses – unreasonable and unfair terms - Not binding - Compensation for delayed possession - Complaint has been filed for alleged delayed possession - The Complainant cannot be made bound to the terms of the Agreement, which are unreasonable and unfair - A terms of a contract will not be final and binding if it is shown that the flat purchasers had no option but to sign on the dotted line, on a contract framed by the builder. The contractual terms of the Agreement dated 08.05.2012 are ex-facie one sided, unfair and unreasonable. The incorporation of such one-sided clauses in an agreement constitutes an unfair trade practice as per Section 2(r) of the Consumer Protection Act, 1986 since it adopts unfair methods or practices for the purpose of selling the flats by the Builder - It is not in dispute that the Complainant booked/hold the Flat in the Project to be developed by Opposite Party Developer on 07.03.2011. As per terms of the Agreement the expected date of delivery of the possession of the Flat was March 2014. Despite having received a huge sum, the Opposite Party Developer failed to deliver the possession within stipulated period - Consequently, the Opposite Party Developer is directed to pay interest @9% on the amount deposited by the respective Complainant – Complaint partly allowed. [Paras 13 to 19]

Result: Complaint partly allowed.

ORDER

The present batch of Consumer Complaints has been filed by the Complainants, against the Opposite Party, Sunstone Developers Joint Venture seeking compensation for delayed delivery of the Flats booked by them in the complex to be constructed by the Opposite Party Developer in the name and style of “Hubtown Sunstone”, within stipulated period.

2. Since the facts and question of law involved in these Complaints are similar except for minor variations in the dates and events and flat numbers, these Complaints are being disposed of by this common Order. However, for the sake of convenience, Consumer Complaint No. 12 of 2017 is treated as the lead case and the facts enumerated hereinafter are taken from Consumer Complaint No. 12 of 2017.

3. Brief facts as narrated in the Consumer Complaint are that Akruti Nirman Limited, i.e., erstwhile company of Hubtown Limited and Swapanrajan Infrastructure Pvt. Limited formed a Joint Venture, i.e., Sunstone Developers Joint Venture (hereinafter referred to as Opposite Party Developer) vide Joint Venture Agreement dated 23.12.2011 with object to develop and construct the sale component by constructing the saleable components by utilising the FSI generated till 23.12.2011 on Property bearing Survey No. 341(pt.), CTS No. 629/1251, Village Bandra, Bandra East, Mumbai, in the name and style of ‘Hubtown Stone’ (hereinafter referred to as the Project) consisting of 3 Basements + Ground + 19 Upper Floors.

4. Allured by the various representations given by the representatives of the Opposite Party Developer that the Project has received Commencement Certificate and all other approvals and sanctions have been received, the Complainant approached the Opposite Party Developer for allotment of a Flat. Accordingly, Flat No. 601, 6th Floor admeasuring 690 sq. ft. carpet area was allotted for the aggregate consideration of Rs.1,96,00,800/- payable as per progress of the Project. Agreement for Sale (hereinafter referred to as the Agreement) was executed between the Parties on 31st March 2012. As per Clause 2.5 of the Agreement, the Possession of the Flat was to be delivered by March 2014. It is stated that till the agreed date of possession, i.e., March, 2014, the Complainant has made about payment of Rs.1,37,76,945/- out of total sale consideration of Rs.1,96,80,000/- despite that the Opposite Party Developer failed to deliver the possession of the Flat till the agreed date of possession. It was also stated that till the date of filing of the Complaint, as per demand of the Opposite Party Developer from time to time, the Complainant has made a total payment of Rs.1,57,44,945/-, i.e., 80% of the total sale consideration to the Opposite Party Developer, despite that they failed to deliver the possession of the Flat within stipulated period. Alleging deficiency in service on the part of the Opposite Party Developer, the present Complaint was filed with the following prayer:-

“(a) That this Hon’ble commission be pleased to declare that the Opposite Party is guilty of deficiency in service and be further please to direct to Opposite party to rectify the defects in its service as builder and developer with further directions to the Opposite Party to handover possession of flat being flat No.601, 6th admeasuring 690 sq.ft carpet area together with ca parking no. 44 A/B in building known as Hubtown Substone situated at land bearing survey No.341 (pt), CTS no. 629/1251 Village Bandra, Bandra (East), Taluka Andheri as per the terms and conditions of agreement dated 31th March 2012 by obtaining the occupation certificate from the concerned authorities in accordance with law forthwith or in such reasonable time this Hon’ble Commission may deem fit and proper by accepting the balance consideration of Rs.39,35,055/- as per terms and conditions of agreement dated 31.03.2012 by and between the parties.

(b) That this Hon’ble Commission be pleased to declare that the Opposite Party is guilty of delay in delivery of po

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