IMPORTANT POINTS
(1) Consumer Protection Act - Complainant has chosen his remedy under the Consumer Protection Act, his complaint before this Commission is perfectly maintainable and there is no embargo in proceedings with this complaint.
(2) Interest - the contention of the complainant that he is entitled to recover the amount paid by him, with interest is fully justified.
(3) Mental Agony - The mental agony at losing his hard-earned money and at the same time being unable to acquire his dream house cannot be trivialised.

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 45 cents comprised in Survey No.2762 of Kowdiar Village located at TKD Road, Pattom. The project was named “Samson & Sons NOVA Castle Apartment”. The property is described more particularly in ‘A’ Schedule appended to the complaint. Opposite parties 2 to 5 persuaded the complainant to purchase an apartment in the project. According to them, it was a luxurious apartment having a built up area of 2100 sq.ft. He was also offered 1.15 cents of undivided interest in the land. The total cost of the apartment was represented to be Rs. 80,00,000/-. The apartment is more particularly described in Schedule ‘B’ appended to the complaint. On the basis of the representations made by opposite parties 2 to 5, the complainant agreed to purchase an apartment on the 7th floor of the building numbered as 7C (type C) in the proposed project. Accordingly, an agreement was executed between the complainant and the 1st opposite party on 22.08.2012.

3. In accordance with the terms of the agreement the complainant has paid the entire sale consideration to the opposite parties. An amount of Rs.50,00,000/- was paid on 22.08.2012, for which payment, a receipt was also issued by the 1st opposite party. According to the complainant, an amount of Rs.20,00,000/- was paid vide RTGS of Federal Bank, Parassala Branch, an amount of Rs.22,00,000/- was paid through two cheques of the Indian Bank, Parassala Branch, Thiruvananthapuram, an amount of Rs.6,00,000/- was paid through cheque No.015861 of the State bank of Travancore, Parassala Branch and the balance amount of Rs.2,00,000/- was paid in cash, making up the total amount of Rs.50,00,000/-. Thereafter, the complainant paid an amount of Rs.12,50,000/- through cheque No. 343776 of the ICICI Bank, Thiruvananthapuram. For the said payment, the 1st opposite party has issued receipt No.1559 dated 25.03.2013. The remaining amount of Rs.17,50,000/- was paid by the complainant through his ICICI Bank, Nagercoil Branch Account on different dates. Thus, an amount of Rs.2,50,000/- was paid on 02.05.2013, Rs.5,00,000/- on 03.05.2013, Rs.5,00,000/- on 27.05.2013 and Rs.5,00,000/- on 28.05.2013. For the said payments, the 1st opposite party has issued receipt No.1674 dated 28.05.2013.

4. The opposite party had promised to hand over possession of the fully constructed apartment to the complainant on or before 31.12.2014. But they have not made any progress in the construction, so far. Moreover, they have pledged the property to the Kerala Financial Corporation (KFC) and obtained a loan without informing the complainant or the other purchasers. Thus they have obtained a loan from the KFC on the security of the property agreed to be sold to the complainant and have thereby cheated them. Though the complainant has requested the opposite parties to settle their claim, they have not cared to do so.

5. The complainant therefore caused the issue of a notice dated 23.11.2016 through his lawyer demanding return of the amount paid by him, together with compensation for the loss and mental agony suffered by him. The complainant has every right to recover the amount of Rs. 80,00,000/- from the opposite parties with interest thereon @12% per annum together with an amount of Rs.10,00,000/- as compensation for the loss and mental agony caused to him. According to