Judicial Analysis Court Copy Headnote Facts Arguments Court observation

NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION, NEW DELHI
Dr. Sadhna Shanker, Presiding Member
M/s. V.N. Sharma
Builders Private Limited – Appellant
versus
Ram Tirath Gupta – Respondent
First Appeal No.2074 of 2019
(Against the Order dated 18/09/2019 in Complaint No.99/2019 of the State Commission Punjab)
Decided on 1.1.2024

Advocates:
Counsel for the Parties:
For the Appellant:Mr. Dinesh Maurya and Mr. G.S. Sandhu, Advocate
For the Respondent:Mr. Deepak Kumar Garg, Advocate

IMPORTANT POINT
Multiple compensations – Multiple compensations for singular deficiency is not justifiable.

Headnote:
Consumer Protection Act, 1986 – Section 19 [Consumer Protection Act, 2019 – Section 51] – Cross Appeals – Services – Real Estate – Allotment of Flat / Plot – Delayed Possession – Thus multiple compensations for singular deficiency is not justifiable – Thus the builder company shall pay compensation in the form of simple interest @ 6% per annum from the respective dates of deposit till the date of possession i.e. 24.07.2018 within 2 months of this order, failing which the applicable rate of interest shall be 9% per annum till realization – Directions with regard to interest at the rate of 9% per annum on IFMS charges and Club Membership charges are set aside and the builder company is directed to refund the amount of Rs.30,000/- taken as IFMS charges and Rs.50,000/- taken as Club Membership charges – Appeal disposed off. [Paras 16 to 24].
Result: Appeal disposed off.

ORDER

These cross appeals have been filed under Section 19 of the Consumer Protection Act, 1986 (hereinafter referred to as “the Act”) against the Order dated 18.09.2019 passed by the State Consumer Disputes Redressal Commission, Punjab, Chandigarh (hereinafter to be referred to as “State Commission) in complaint No. 99 of 2019, whereby the complaint of the complainant was partly allowed.

2. The appellant (here-in-after referred to as ‘the complainant’) has filed appeal no. 2327 of 2019 for enhancement of compensation whereas M/s V. N. Sharma Builders Private Limited (here-in-after referred to as the ‘builder company’) has filed appeal no. 2074 of 2019 for setting aside the order dated 18.09.2019 of the State Commission.

3. The brief facts of the case are that on 12.05.2011 the complainant applied for the allotment of a flat in the project namely “Savitry Greens,” of the builder company along with Rs. 2,25,000/- as earnest money. The builder company allotted flat No.1201/Block 15, 12th Floor, having a super area of approximately 1360 sq. ft., within Savitry Greens, located on VIP Road, Zirakpur. The total consideration of the flat was Rs.36,29,600/-. It is alleged that after receiving the booking amount, the builder company had neither constructed the flats nor executed the builder – buyer’s agreement and after great persuation, the builder company executed the agreement on 12.02.2015 with the following terms:—

(i) OP fixed the price of flat at Rs.34,68,000/-.

(ii) Claimed preferential location charges of Rs.81,600/-.

(iii) OP agreed to construct, complete and handover the possession of the said flat upto 15.12.2015.

(iv) OP would charge Rs.50,000/- as club fee and club was to be put in operation after minimum 30% occupancy of the project.

(v) OP was also to earmark the parking space of one car for exclusive use of the complainant in the said complex.

(vi) OP was to give notice to the complainant about the date on which it has to deliver possession of the apartment to the complainant.

4. The grievances of the complainant are that the construction of the colony was not approved by the PUDA and other concerned authorities; the builder company had failed to act upon the terms and conditions of the agreement; the builder company had not handed over the possession of the club so far, the registration of the flat had not been done; no space had been earmarked for parking and the builder company had illegally retained Rs. 2,25,000/- for which, the complainant is entitled to interest at the rate of 18% from 12.05.2011 to 12.02.2015. It is further alleged that the builder company agreed to complete the construction within ten months from the date of execution of the agreement i.e. upto 12.12.2015 but the builder company delivered the possession of the flat on 24.07.2018 i.e. with a delay of about two years and seven months. The complainant had deposited total amount of Rs. 35,49,000/-. Therefore, the complainant is entitled to interest at the rate of 18% per annum from 12.12.2015 till 24.07.2018. It is further contended that the builder company agreed to accept a sum of Rs. 36,29,000/- as full and final payment for the flat, inclusive of PLC (preferential location charges), IFMS (interest-free maintenance security), Club Membership, and all other taxes. However, on 24.07.2018, the builder company claimed and charged Rs. 38,89,625/- which included GST and interest on GST, along with interest on delayed payment. A specific interest of Rs.72,359/- was calculated @ 18% per annum on the delayed payment of Rs.5,43,000/-.

5. An offer of possession was issued on 09.08.2017 requesting payment, including the excess amount. In pursuance thereof the complainant deposited Rs.2,13,666/- via receipt No. 9865 dated 26.06.2018 and Rs.2,81,100/- via receipt No. 9910 dated 21.07.2018. After making the full payment on 24.07.2018, a no due certificate was issued and possession of the flat was handed over by issuing a letter of possession on the same date