NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION, NEW DELHI
Sudip Ahluwalia, Presiding Member
Julian Glynn Broughton and Anr. – Complainants
versus
Bellagio Projects Private Limited – Opp. Party
Consumer Case No.270 of 2020
Decided on 3.4.2023
Consumer Protection Act, 1986 – Section 21(a)(i) – [Consumer Protection Act, 2019 – Section 58(1)(a)(i)] – Services – Real Estate – Allotment of Flat / Plot – Delayed Possession – Refund of Amount deposited ordered – Unfair terms in Contract – Cannot bind Complainants - Complainants cannot be made bound to the terms of the Agreement, which is one-sided and unfair - Commission has no hesitation in holding that the terms of the Apartment Buyer’s Agreement dated 2.2.2015 were wholly one-sided and unfair to the Complainants. The Opposite Party/Builder cannot seek to bind the Complainants with such one-sided contractual terms - The Opposite Parties have also not succeeded in making out a satisfactory case of intervention of Force Majeure events - Consequently, the Opposite Party- Developer is directed to refund to the Complainants Rs.66,31,691/- alongwith interest @9% p.a. from the respective date of each deposit – Complaint allowed. [Paras 10 to 20].
Result: Complaint allowed.
ORDER
Sudip Ahluwalia, Member—This Consumer Complaint has been filed by the Complainants against the Opposite Party under Section 21(a)(i) of the Consumer Protection Act, 1986 for payment of overall compensation of Rs.1,16,31,568/- along with interest at the rate of 18% from 01.02.2020 till date of actual payment.
2. The brief facts leading upto the present Complaint are that the Complainant No.1 is a businessman and Complainant No.2 is the 95-year-old mother of Complainant No.1. The Opposite Party widely advertised their project namely, Bellagio Lvl Nxt at Rajarhat, Kolkata. The Complainants, specifically for residence of Complainant No.2, booked a residential apartment bearing flat no. A109 in Block A on 1st Floor with a super-builtup area of 1344 sq. ft. approx. along with one covered car parking space in the said project. The Complainants paid a booking amount of Rs.5,00,000/- on 29.10.2014 and further paid an amount of Rs.9,03,371/- on 24.11.2014. It is submitted by the Complainants that the Opposite Party unilaterally prepared a Sale Agreement for the said flat which was signed and executed on 02.02.2015 and the Complainants were compelled to sign the said Agreement as they had already parted with substantial sum of money of around 14 Lakhs. It is further averred that as per clause 9.5 of the Agreement, the completion date was mid of 2017 which was subject to force majeure conditions, and a grace period of 6 months. It is further submitted by the Complainants that they have paid 13 out of the 14 instalments totalling to Rs.66,31,691/- out of total consideration of Rs.66,63,040/-.
3. Further, the case of the Complainants is that there was considerable delay in commencement of construction as the demand for laying of foundation was made after 18 months of execution of the Agreement i.e., on 15.07.2016. It is also pleaded that upon inspection, it was found that the project was not progressing as per the Agreement. It is further averred that on nearing the date of completion, the officers of Opposite Party contacted the Complainants and ensured that the said flat would be delivered by Durga Puja of 2018. Further, an Email was received by the Complainants on 02.02.2019 that stated the finish date of construction of Block A to be 30.09.2019. It is further submitted that the Opposite Party gave vague reasons for delay including and not limited to demonetisation, general elections, etc. The Opposite Party further vide email dated 26.11.2019 stated paucity of funds as the main reason for delay. And again on 06.01.2020, the Opposite Party expressed financial distress being faced by the Opposite Party.
4. The Complainants further submitted that they have no hope whatsoever in getting the possession of the flat. The construction has not been carried out within the timeframe covered under the agreement and the construction is not complete even till now (date of filing the Complaint). The Apartment has not been handed over to the Complainants and the possession further cannot be handed over as the opposite Party has neither completed the construction, nor has the work for providing amenities and facilities has been completed even after about 5 years from date of execution of the agreement. It is pleaded that the Complainants have effected payment till November, 2018 even after delay on behalf of the Opposite Party and such, demands were illegal and arbitrary as the construction had not progressed. It is further stated that the Opposite Party has charged for club membership whereas the club is not functional yet. Hence, the Complainants have filed the present Complaint being aggrieved by the acts of the Opposite Party and unfair trade practice and deficiency in service on its part. The Complainants have sought refund of Rs.66,63,040/-, interest of Rs.33,68,528/-, compensation for mental agony Rs.10,00,000/- and Litigation Expenses of Rs.6,00,000 totalling to Rs.1,16,31,568/- along with interest. Consequently, the Complainants have pray
One-sided - Complainants cannot be made bound to the terms of the Agreement, which is one-sided and unfair.
Installment – Once the instalments were collected, the buyers are sought to be non-suited on a multitude of grounds, primarily the liability of the Government in not providing infrastructure and to c....
LAW POINT Global recession – Complainants cannot be made to wait indefinitely for the delivery of possession and the act of the Opposite Party in relying on global recession while retaining the amou....
Refund – it is well within the Complainant’s right to seek for refund of the principal amount with interest and compensation as construction is still not complete.
Valid Possession – Mere completion of structure cannot be said that the Apartment is ready for valid possession.
(1) Earing profits - The onus of establishing that the Complainant was dealing in real estate i.e. in the purchase and sale of plots/ flats in his normal course of business to earn profits, shifts to....
The court held that the delay in possession does not constitute a deficiency in service, provided the developer adheres to the agreed timeline including permissible grace periods.
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