IMPORTANT POINT
In the event of failure to give possession of flat as agreed, purchaser is entitled to approach Consumer Commission.

ORDER

Thiru.R.Pongiappan, President—This complaint has been filed under section 11 and 12 of the Consumer Protection Act, 1986 praying to direct the opposite parties

(i) To return a sum of Rs.40 lakhs alongwith interest at the rate of 24% per annum,

(ii) To pay a compensation of Rs.10 lakhs for the deficiency in service on the part of the opposite parties and to pay a sum of Rs.5 lakhs for the mental agony and frustration suffered by the complainant.

(iii) To pay a sum of Rs.20 lakhs for the expenditures incurred by the complainant by way of interest to the bank loan processing and travelling expenses.

2. Case of the complainant is as follows:

The second opposite party is the absolute owner of complaint mentioned ‘A’ schedule property. The second opposite party had appointed the first opposite party as her authorized power agent by way of General Power of Attorney dated 15.06.2011 for the construction of building in the complaint mentioned ‘A’ schedule property. Further, a Joint Venture contract was entered between the first and second opposite parties, wherein it was agreed by the first opposite party to construct flats in the complaint mentioned ‘A’ schedule property and the same was registered on 15.06.2011 vide registration No.2587/2011 on the file of the Sub-Registrar, Puducherry. On 15.07.2012 an agreement for sale of undivided land was entered between the first opposite party and the complainant i.e. the ‘B’ schedule. Further, on the same day, the construction agreement was entered between the first opposite party and the complainant, wherein it was agreed by the first opposite party to construct and allot a residential apartment in ‘Lotus Maruthi’ bearing No.S -1.

3. For the said flat, the total sale consideration was fixed as Rs.43 lakhs, out of which the complainant has paid a sum of Rs.40 lakhs on the same day. The receipt of sale consideration was duly acknowledged by the first opposite party. The sale consideration amount was paid by the complainant by way of borrowing loans from the banks and in this regard he is paying interest without any default. The performance of the sale period was agreed for a period of one year. The first opposite party had not fulfilled his part of contract i.e. completing the flat within the stipulated period. The opposite party has failed in his duty in handing over the flats even after the lapse of two years. On 27.08.2014, the complainant issued a notice to the first opposite party and even after receipt of the same, the first opposite party had neither replied nor handed over the flats. Hence, the complainant again sent a letter dated 12.09.2014 requesting to handover the flats within the period of 30 days. On 24.09.2014, the first opposite party gave a reply letter stating that “I am always ready and willing to execute the sale of the land and flat to you and handover possession thereof to you if you remit the balance amount of Rs.3 lakhs and come forward to finalize the sale by producing appropriate stamp and registration” but there is not even a single whisper or word about completion and handover of flat.

4. Again on 28.10.2014, the complainant issued a letter to the first opposite party, wherein he requested the first opposite party to show necessary documents alongwith occupancy certificate at the earliest. Further, the complainant repeatedly has sent communications to the first opposite party for confirming the date of handing over the flat and fix date for registration. In this regard the first opposite party is particular in demanding the complainant to pay the balance sale consideration. The complainant waited for months together and on 12.08.2015 and 30.08.2015, the complainant again issued a letter requesting to refund the advance amount, within one week of receipt of this reminder letter, i.e. the amount of Rs.40 lakhs with interest at 24% per annum from the date of payment. In this regard, there is no positive reply from the opposite party till date.

5. The first