IMPORTANT POINT
Owing of House – The desire of a person to own a house of his own is sacred and sacrosanct. It was to satisfy the said desire of the complainant that he had parted with such a huge amount, raising part thereof through a bank loan also.

JUDGMENT

K. Surendra Mohan, President—This is a complaint filed under Section 17 of the Consumer Protection Act, 1986 (hereinafter referred to as the Act for short) claiming compensation for alleged deficiency in service and unfair trade practice of the opposite parties. The 1st opposite party is a Private Limited Company engaged in the business of land development, construction and sale of apartments, villas and other residential structures. The 2nd opposite party is the Managing Director of the Company while the other opposite parties are the Directors of the 1st opposite party.

2. The opposite parties were in the process of executing an apartment project in a property admeasuring 17.20 cents comprised in Survey No 1451/1/1/1, 1451/1, 1451/1/1 of Kowdiar Village, Thiruvananthapuram District. The project was named “Samson & Sons Merry Land”. The property is described more particularly in ‘A’ Schedule appended to the agreement. Opposite parties 2 to 4 persuaded the complainant to purchase an apartment in the project. According to them, it was a luxurious apartment having a built up area of 1500 sq.ft. She was also offered undivided interest in the land. The total cost of the apartment was represented to be Rs.60,00,000/- (Rupees Sixty Lakhs). The apartment is more particularly described in Schedule ‘B’ appended to the agreement. On the basis of the representations made by opposite parties 2 to 4, the complainant agreed to purchase an apartment in the proposed project. Accordingly, an agreement was executed between the complainant and the 1st opposite party on 16.02.2013.

3. In accordance with the terms of the agreement the complainant paid him the entire amount as per details given below:—

1. Rs. 6,00,000/- on 16-02-2013 vide receipt No. 1509

2. Rs. 4,00,000/- on 19-02-2013 vide receipt No. 1512

3. Rs. 20,00,000/- on 25-10-2013 vide receipt No. 1875

4. Rs. 10,00,000/- on 04-04-2016 vide receipt No. 2706

5. Rs. 20,00,000/- on 25-04-2016 vide receipt No. 2711.

Five receipts, evidencing payment of the said amounts, totalling Rs.60,00,000/- (Rupees Sixty Lakhs) are produced along with the complaint.

4. The opposite party had promised to hand over possession of the fully constructed apartment to the complainant on or before 31.05.2015. But they have not made any progress in the construction, so far. Moreover, they have fraudulently alienated the properties to strangers. Though the complainant has requested the opposite parties to settle their claim, they have not cared to do so.

5. As there was violation in the terms of agreement, the complainant approached the opposite parties on many occasions and demanded return of the amount paid by her, together with compensation for the loss and mental agony suffered by her. The complainant has every right to recover the amount of Rs.60,00,000/- (Rupees Sixty Lakhs) from the opposite parties with interest thereon @12% per annum together with compensation for the loss and mental agony caused to him. According to the complainant, she is a consumer under the Act. There is deficiency in service and unfair trade practice on the part of the opposite parties, who are the service providers.

6. The complaint was admitted and notice was issued to the opposite parties by this Commission. On receipt of notice the opposite parties entered appearance through counsel and contested the complaint. According to the common written version filed by the opposite parties, the complaint itself was not maintainable. According to them, the dispute falls outside the jurisdiction and powers of the Redressal Authorities constituted under the Act. The dispute in this case comes within the scope of the Real Estate (Regulation and Development) Act 2016, a specific enactment made for the purpose of resolving the disputes between a builder and an allottee. The Real Estate Regulatory Authority (RERA for short) is specially constituted to look into the complaints as in the present case. Section 79 of the said Act spec