NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION, NEW DELHI
R.K. Agrawal, President
Virender Kumar Kataria – Appellants
versus
BPTP Ltd. and Anr. – Respondents
Review Application No.18 of 2023 in
CC/3023/2017
Decided on 17.4.2023
Consumer Protection Act, 1986 – S.22[Consumer Protection Act, 2019 – S.60] – Power of Review – Recall of order - Services – Real Estate – Allotment of Flat / Plot – Delayed Possession - The Members of the Complainant Association had booked their Flats/Apartments with the Opposite Party Developer during the period from April 2011 to July 2012 and thereafter the Floor Buyers Agreements were executed between the respective parties in the year 2013. In terms of Clause 5.1 of the Agreement, the possession of the Apartments booked by the Members of the Complainant Association was to be delivered to them within a period of 30 months from the date of execution of the Agreement with a grace period of 180 days that means the Developer was under an obligation to complete the Project and offer the possession of the dwelling units, complete in all respect around July 2015. There is no dispute between the parties that the Occupation Certificate in respect of the Project, namely “Parkland Pride” was issued by the Competent Authorities to the Opposite Party Developer in June 2018 and as such admittedly there is delay of more than 3 years in completing the Project. It is also undisputed that an offer of possession after obtaining the Occupation Certificate was made to the Members of the Complainant Association in July 2018 – Therefore, while allowing the Review Application Commission recalled the direction to the Opposite Parties to refund the principal amount deposited by the Members of the Complainant Association who are not interested in taking the possession and direct the Opposite Parties to deliver the possession to the Members of the Complainant Association in terms of the Order dated 14.02.2022 – Thus, in the cases where the allotments had been terminated due to default in payment of the due installments in time, the Complainants, if so interested, shall also be entitled for possession of the booked Units inasmuch as the Complainants did not make the payment due to delay in completion of the Project by the Opposite Party Developer. [Paras 5 to 13].
Result: Petition allowed.
ORDER
The present Review Application Nos. 18 to 32 of 2023 have been filed by the Opposite Party Developer i.e., BPTP Ltd., (hereinafter referred to as “the Developer”) praying for review of the Common Order dated 04.01.2023 passed by this Commission wherein Consumer Complaint Nos. 3023/17, 339/18, 340/18, 1130/18, 1204/18, 1211/18, 1516/18, 697/19, 1492/19, 1598/19, 1671/19, 1885/19, 2018/19, 1225/18, 255/19 and 300/20 were partly allowed by directing the Developer to either hand over the possession with delayed compensation or refund the deposited amount with interest as per the discretion of the Flat Buyers.
2. The relevant facts which are material to dispose of the present Review Applications, are that the Complainants/Non-Applicants were allotted different Residential Units in “TERRA” Residential Project, to be developed by the Opposite Party Developer at sector 37D, Gurugram, Haryana. Flat Buyers Agreements (hereinafter referred to as “The Agreement”) were executed between the Parties almost in the year 2012-2013. As per Clause 1.6 of the Agreement, the Opposite Parties were under an obligation to deliver the possession of the allotted Unit to the Flat Buyers within a period of 42 months from the date of execution of Agreement or sanction of Building Plan, whichever was later, extendable by another 180 days as grace period from the date of signing and execution of the Agreement. Since the Opposite Party Developer had failed to deliver the possession of the allotted Flats within stipulated period despite having received a substantial amount, alleging deficiency in service on the part of the Opposite Party Developer, the Non-Applicants/Complainants filed aforesaid Consumer Complaints claiming refund of the entire deposited amount along with interest and compensation.
3. This Commission vide its Order dated 04.01.2023 disposed of the Consumer Complaints by observing as under:—
“In brief, it is the case of the Complainants/Unit Holders of the Project “TERRA” that despite being paid the substantial amount towards the total Sales Consideration of the allotted Units to the Opposite Parties Developer, they have miserably failed to hand over the possession of the Units, complete in all respect, within the stipulated time as promised in Clause 1.6 of the Flat Buyer’s Agreement and hence they are entitled for refund of the deposited amount with interest and reasonable compensation even though the Developer have obtained the Occupancy Certificate in the year 2021 i.e. after delay of 4 years from the committed date of delivery.
16. According to the Developer, the delay in completing the Project has occurred due to default on the part of the Complainants in making the timely payments of due installments. Having charged interest at the very high rate for the said delay, in my considered opinion, the Developer has condoned the said delay and cannot deny refund with compensation on account of the aforesaid condoned defaults. Even if, some of the Complainants have defaulted in making the payments to the Developer, the Complainants who admittedly did not commit any default cannot be penalized for the default on the part of the other buyers. This is more so when there is delay in completing the construction and handing over the physical possession on the part of the Opposite Parties Developer. The Developer cannot take the advantage of its own wrong. Delay in completion of the Project by the Developer was one of the reasons due to which the Complainants did not make the payment of the due instalments inasmuch as the payment was linked with the construction status of the Project in question.
17. The stand taken by the Opposite Parties Developer that the period of delivery of possession in 42 months as defined in Clause 1.6 of the Agreement is not sacrosanct and the delay is attributable to Force Majeure events, and, therefore, no deficiency of service can be attributed to them, is totally unsustainable, as the Opposite Parties Developer
Promised date of delivery – after the promised date of delivery, it is the discretion of the Complainant whether he wants to accept the offer of possession, if any, or seek refund of the amounts paid....
No Occupancy Certificate – The Occupation Certificate is not available even as on date, which clearly amounts to deficiency of service.
Consumers are entitled to refunds for unreasonable delays in property possession, affirming their rights under contracts.
(1) Possession – Directing possession of the apartment without the requisite certificates would be inappropriate and not in the interest of justice.(2) National Commission – National Commission deter....
Delay in possession and unfair contractual terms lead to a mandated refund with interest for allottees.
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