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NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION, NEW DELHI
AVM J. Rajendra, AVSM VSM (Retd.), Presiding Member
Omaxe Limited – Appellant
versus
Sandhya Singh – Respondent
First Appeal No.254 of 2023
(Against the Order dated 31/01/2023 in Complaint No. 37/2022 of the State Commission Uttar Pradesh)
Decided on 27.9.2023

Counsel for the Parties:
For the Appellant:Mr. Tarun Sharma, Mr. Abid Ali, Mr. Shubham Madaan and Mr. Manek Sharma, Advocates along with AR in person
For the Respondent:Mr. Ritwik Choudhary, Advocate

Headnote:

Consumer Protection Act, 2019 – Section 51 – Appeal - Services – Real Estate – Allotment of Flat / Plot – Delayed Possession – Pecuniary Jurisdiction – when value doesn’t exceed prescribed limit - It is a statutory position in terms of Section-47 of the Consumer Protection Act, 2019, and the Consumer Protection (Jurisdiction of the District, the State Commission, and the National Commission) Rules, 2021 that the learned State Commission has pecuniary jurisdiction of matters above Rupees Fifty Lakhs, but not exceeding Rupees Two Crores – Thus, it is evident and admitted position that the value of consideration paid by the Complainant/Respondent in the case is Rs.34,56,529/-, out of total Consideration of Rs.44,73,750/- lakhs. This does not exceed Rs.50,00,000/-. Therefore, the learned State Commission does not have pecuniary jurisdiction to entertain the Consumer Complaint – On facts, Appeal is allowed, and the impugned order is set aside. The Respondent/Complainant is granted the liberty to file requisite complaint before the appropriate forum in accordance with law. [Paras 5 to 28].

Result: Appeal allowed.

ORDER

This First Appeal, under Section 51 of the Consumer Protection Act, 2019 (hereinafter referred to as “the Act”) has been filed by Omaxe Limited (hereinafter referred to as the “Appellant” or the “Opposite Party”), against the Impugned Order dated 31.01.2023 passed by the State Consumer Disputes Redressal Commission, Lucknow, UP (hereinafter to be referred to as “the State Commission”) in Consumer Complaint No. 37 of 2022.

2. The complainant booked an independent residential built up floor named ‘Grand Omax, Lucknow’ floated by the Opposite Party (OP) in July, 2015. The OP promised the prospective buyers to complete the project within a period of 36 months from the date of booking. The total consideration as for the said independent floor was Rs.44,73,750/-. For Registration in the housing scheme, the Complainant paid Rs.2,00,000 on 07.07.2015 and Flat No. GOL/Florence-A-Sixth/601 was allotted to her.

In the course of time, till 2017 she paid Rs.20,97,558/- to the OP. Even after making such substantial payment and repeated requests, the builder did not get the agreement made. Only on 22.03.2017, the OP entered into Builder Buyer Agreement and handed over a copy to her.

3. Subsequently, the Complainant visited the area of the project and found no progress. The OP indulged in unfair trade practices as the other projects which started later were completed. Being aggrieved, she forwarded a legal notice on 25.09.2017 and sought refund of the entire amount deposited i.e. Rs.20,97,558, along with interest. In reply dated 09.11.2017, the OP reiterated that the construction is progressing in full swing and the project will be completed in time. Thereafter, on being advised, she met Omax Head of UP. He again assured her that the project will be completed in time. Thus, she made further payments demanded by the OP. Subsequently, she visited the site of the project during March 2022 and found that the construction was not progressing. She was disappointed and suffered severe mental agony as the OP was making her wait eternally. The OP committed major fraud by collecting Rs.2,00,000 as the Registration fees on 07.07.2015 itself and did not enter into the Builder Buyer Agreement with the Complainant. Only when continually demanded, the Agreement was done on 22.03.2017. In terms of Para 40(a) of the said Builder Buyer Agreement, the OP has stated that “the Company shall complete the development/ construction of the unit/ project 48 months from the date of signing of this Allotment Letter by the allottee or within an extended period of six months”.

4. As per the Complainant, the period of 54 months commenced on 07.07.2015 when she deposited the registration money and she was issued a genuine receipt and was allotted the Flat in question. So, the period of 54 months having commenced on 07.07.2015 ended in January 2020. There is no hope for completion of the project in the next 3-5 years. There is no Completion Certificate, Occupancy Certificate, NOCs of Fire Department or Pollution Control Department. She is in dire need of residential unit and has taken financial assistance to pay the OP with the hope that the OP will handover the possession of the flat at the earliest. However, she was shocked to see no construction work going on except the skeleton of the building. She lived in Lucknow by taking a flat on rent awaiting the completion of the work and paid Rs. 20,000 per month for two years. Despite several reminders the OP failed to handover the flat to her. The complainant suffered acute mental agony and depression. The OP indulged in unfair trade practices as her hard-earned money was utilized elsewhere. The indefinite delay frustrated her plans beyond redemption. Till date, almost six years have gone by and the fate of completion of the flat still hangs in balance. Therefore, left with no option, she claimed for refund of the market value of the flat along with damages, compensation and interest @ at the rate of 18% interest.

5. The

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