NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION, NEW DELHI
Dinesh Singh, Presiding Member and
Karuna Nand Bajpayee, Member
Estate Officer (H), Greater
Mohali Area Development
Authority (GMADA) and Anr. – Appellant
versus
Surjeet Bedi – Respondent
First Appeal No.1605 of 2019
(Against the Order dated 04/02/2019 in Complaint No.178/2018 of the State Commission Punjab)
Decided on 10.4.2023
Consumer Protection Act, 1986 – Section 19 [Consumer Protection Act, 2019 – Section 51] – Appeal - Services – Real Estate – Allotment of Flat / Plot – Delayed Possession – Implementation of equal policy - It is unclear whether delay in down payment under Plan ‘A’ was regularised by imposition of some monetary penalty in respect of other similarly situate person(s). On the other hand, rather than a categorical assertion that it has not regularised such delay in respect of any other person(s) and the condition of 60 days for making payment has been strictly implemented in all (repeat all) cases without exception, there is loaded reticence on the part of the development authority apropos this crucial aspect - It is also uncertain whether any rational and fair method of adjusting down payment received in advance against deferred instalments due in future was at all in place as a systemic practice. Again, on the other hand, rather than an unequivocal assertion that it retains down payment under Plan ‘A’ if received after the 60 day stipulated period as advance payment against future instalments due under Plan ‘B’ as a matter of policy, there is expressive silence on the part of the development authority regarding this vital aspect - Its policy, uniformly applicable to all such cases, has not been produced before the State Commission or before this Commission. In the absence of the same there is no other alternative but to observe that its functioning in this arena is not in an objective regular manner but is more or less subjective and adhoc on case-to-case basis – Therefore, the award made by the State Commission vide its impugned Order dated 21.07.2020 is sustained – Appeal disposed off. [Paras 4 to 8].
Result: Appeal disposed off.
ORDER
This appeal under section 19 of the Act 1986 is in challenge to the Order dated 04.02.2019 of the State Commission in complaint no. 178 of 2018.
2. We have heard the learned counsel for the development authority (the appellants herein) and for the complainant (the respondent herein) and have perused the record.
3. The appeal has been filed with reported delay of 135 days.
However, in the interest of justice, inter alia having regard to the reasons contained in the application for condonation of delay, in order to decide the matter on merit rather than dismiss it on the threshold of limitation, the delay in filing the appeal is condoned.
4. Learned counsel for the development authority submits that earlier appeal no. 602 of 2021 was decided by this Commission vide its Order dated 16.11.2022. She provides a copy of the said Order of 16.11.2022, which is being reproduced below for reference:—
Dated: 16.11.2022
ORDER
1. This appeal has been filed under section 51(1) of the Act 2019 in challenge to the Order dated 21.07.2020 of the State Commission in complaint no. 996 of 2018.
We have heard the learned counsel for the development authority (the appellants herein) and the complainant in person (the respondent herein). We have also perused the material on record including inter alia the State Commission’s impugned Order dated 21.07.2020 and the memorandum of appeal.
2. The appeal has been filed with reported delay of 391 days.
There is no application for condonation of delay. However, in the interest of justice, to provide fair opportunity to the appellant development authority, to decide the matter on merit rather than dismiss it on the threshold of limitation, the delay in filing the appeal is condoned.
3. As evinces from the material on record, the complainant had applied online on 11.01.2012 for the subject apartment under the category of Defence Personnel. The tentative price of the apartment was Rs.37,00,000/-. The complainant paid 10% thereof i.e. Rs.3,70,000/- with his application through electronic transfer. He was successful in the draw of lots held on 16.03.2012. Letter of Intent (LoI) dated 18.05.2012 was issued by the development authority to the complainant. The LoI stipulated that initial 30% of the tentative price had to be paid by 22.06.2012. The complainant paid the same on 22.06.2012 through electronic transfer.
Two schemes apropos further payment of 65% of the tentative price (i.e. total 95%) were provided for. Plan ‘A’ required that 65% of the tentative price be paid within 60 days of issue of the LoI and it allowed rebate of 5% on the balance amount payable. Plan ‘B’ required that 65% be paid with 12% interest in six half yearly instalments from the date of issue of the LoI i.e. on 18.11.2012, 18.05.2013, 18.11.2013, 18.05.2014, 18.11.2014 and 18.05.2015.
Balance 5% of the tentative price was payable at the time of possession under both Plans.
The complainant opted for Plan ‘A’. He paid a total amount of Rs.33,94,750/- by 09.10.2012, out of which Rs.22,29,561/- was paid by taking loan from a bank and Rs. 11,65,189/- from his own sources including savings from salary and advance from provident fund. The loan was sanctioned by the bank for down payment under Plan ‘A’. The development authority had endorsed / signed the loan agreement between the complainant and the bank. The bank disbursed the loan directly to the development authority. The complainant paid 30% + 65% = 95% of the tentative price (with 5% rebate on 65%) under Plan ‘A’. However the payment of 65% was not made within the stipulated period of 60 days from the issue of the LoI.
Since the payment was made beyond the stipulated period, the development authority did not treat his case under Plan ‘A’ and also did not give him the benefit of rebate for down payment. It treated his case under Plan ‘B’.
The complainant took up the matter with the development authority. He ultimately wrote a letter dated 25.01.2017 for refund of the
(1) Development Authority - The development authority is a government authority and is required and expected to function in accordance with the prescribed administrative and financial rules, its acco....
Allotment – Once an allotment letter is made its conditions prevail over the conditions mentioned in the earlier LoI.
Authorities must clarify payment structures and ensure timely refunds, as consumer rights are pivotal in contractual agreements.
Delay in allotment of flat – Deficiency in service – Failure to provide completion/occupation certificate by Development Authority.
(1) Justified Withholding of Payments – An allottee is not necessarily “at fault” for stopping installments if it is evident that the builder is nowhere near completing the project by the committed d....
Flat Buyer’s Agreement – Denial of timely possession despite substantial payment – Payment of interest on refund of principal amount is necessary.
(1) Possession - If the developer fails to deliver possession of the allotted plot/flat within the stipulated time, the allottee is under no obligation to accept an alternate plot.(2) Interest - When....
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