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KERALA STATE CONSUMER DISPUTES REDRESSAL COMMISSION, THIRUVANANTHAPURAM
K. Surendra Mohan, President, T.S.P. Moosath, Judicial Member, Ranjit R., Member, Beenakumari A., Member and Radhakrishnan K.R., Member
Sunitha Jose @ Sunitha Aji and Ors. – Appellants
versus
Beena Jose @ Beena Joseph and Anr. – Respondents
First Appeal No.A/273 of 2020
Decided on 16.1.2023

Advocates:
Counsel for the Parties:
For the Appellants:C.R. Suresh Kumar, Advocate
For the Respondents:K.G. Mohandas Pai, Advocate

IMPORTANT POINT
Right to approach - Thus as long as the flat is not fully constructed and handed over in time, the person who booked the flat has the right to approach the appropriate forum for redressal of his grievances.

Headnote:

Consumer Protection Act, 2019 – Section 41 - Services – Real Estate – Allotment of Flat / Plot – Delayed Possession – Compensation Award of - Legitimate right to claim – Refund – awarded - Thus as long as the flat is not fully constructed and handed over in time, the person who booked the flat has the right to approach the appropriate forum for redressal of his grievances - The appellants are not able to prove that the inordinate delay in the completion of the project was due to any act of God or due to any statutory regulations or non availability of building materials or any other reason beyond the control of the builder. As per clause 19 they are liable to refund the amount with 18% interest if there is a default on the part of the builder - The Buyers cannot be made to wait for an indefinite time and suffer financially. Hence, the buyers in the present circumstances have a legitimate right to claim refund along with fair delay compensation/interest from the OPs”. In this case there is a clear deficiency on the part of the appellants /opposite parties in not honouring the commitments/fulfilling the contractual obligations as per the agreement – On facts, though there is no specific prayer for refund of the amount paid, the District Commission has ordered to refund the entire amount paid by the respondents/complainants with interest – Thus, District commission ought to have stated these facts in the order passed by them – Thus, there is no illegality and hence we do not find any error in this order of the District Commission – Appeal partly allowed. [Paras 9 to 13].

Result: Appeal partly allowed.

ORDER

Radhakrishnan K.R., Member—This is an appeal filed under section 41 of the Consumer Protection Act 2019 against the order in C.C. No. 176/2018 passed by the Consumer Disputes Redressal Commission, Idukki (District Commission for short).

2. As per the order dated 29.11.2019 the District Commission directed the opposite parties to refund the entire amount of Rs. 18,50,513/- received from the complainants, with 18% interest per annum from 31-07-2009, the date of agreed delivery of the flat, till realisation. Opposite parties are further directed to pay compensation of Rs. one lakh and litigation cost of Rs. 10,000/- to the complainants within 30 days of receipt of a copy of the order, failing which the amount shall carry 12% interest per annum from the date of default, till its realisation.

3. The brief details of the complaint are as under:

The complainants are husband and wife. They booked a flat having 1569 square feet area in the 9th floor of the apartment named “Value View” constructed by the opposite parties in Olamattom Kara in Thodupuzha Village. The agreed price of the flat was Rs.22,26,554/- + Rs.1,25,000/- for car parking. The opposite party agreed to complete the construction on or before 31-07-2009 and the amount was payable in various instalments as per the agreement dated 30-03-2007. An amount of Rs.18,50,513/- was paid by various instalments upto 31-07-2009. The flat was not completed and delivered within the time agreed by the opposite parties. There is a clause in the agreement which provides for payment of interest @ 18% if the flat is not delivered as agreed. Hence the complainants filed this complaint claiming interest at the rate of 18% for Rs.18.5 lakhs for 108 months with compensation of Rs.4 lakhs and legal expenses of Rs.5,000/-.

4. According to the opposite parties who entered appearance and filed version, the complainants did not pay the amount in full as per the agreement and so they have also failed to comply with the terms of the agreement. They submitted that the complaint was filed long after the date agreed for completion of the flat. Hence the complaint was time barred. According to them they are not liable to pay interest and hence they prayed for dismissal of the complaint.

5. Complainant was examined as PW1 and documents P1 and P2 were marked on their side. There was no evidence on the side of the opposite parties. On the basis of the evidence adduced the District Commission passed the impugned order. Aggrieved by the said order the opposite parties have filed this appeal.

6. Heard both sides and perused the records.

7. The learned counsel for the appellant submitted that the complaint was barred by limitation as it was filed nine years after the proposed date of delivering the flat and that they did not pursue the matter for all these years. It was further submitted that the District Commission exceeded its authority by allowing the complaint and directing them to repay the amount paid with 18 % interest. The complainants have not prayed for refund of the amount paid for purchase of the flat. Their prayer is only for interest for the alleged delayed period of 108 months. The complainants are not eligible to claim the interest as they have also not performed their part of the agreement by paying the full amount of the flat as agreed i.e. Rs. 24,26,554/-. The appellants had also suffered loss because of the non-payment of the balance amount by the respondents. The delay in completion of the construction was due to sudden change in the socio economic factors in the society and non-availability of certain materials. The delay was beyond their control and as the respondents are also equally responsible by non-payment of the balance amount. They prayed for setting aside the order of the District Commission.

8. The learned counsel for the respondent submitted that the flat should have been completed and handed over before 31-07-2009 as per the Ext P1 agreement. The balance amount was not paid

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