KARNATAKA STATE CONSUMER DISPUTES REDRESSAL COMMISSION, BANGALORE
Ravishankar, Presiding Member and Sunita Channabasappa Bagewadi, Member
Pramitha Marina Menezes – Complainant
versus
M/s T3 Urban Developer
Ltd. and Ors. – Opp. Party
Complaint Case No.424 of 2019
Decided on 14.12.2023
Consumer Protection Act, 1986 – Section 17 – Consumer Protection Act, 2019 – Section 47 – Services – Real Estate – Allotment of Flat / Plot – Delayed Possession – Entitlement of Interest – The complainant alleges before this Commission that the Opposite Parties have not kept their promise and not completed the work has undertaken. The photos produced before this Commission discloses that the Opposite Parties have not completed the construction work as per the Ex-C-16 and Ex-C-17. At the same time as per the version of the Opposite Party No.10, they have initiated recovery proceedings against Opposite Party No.1 and others for recovery of the loan to the Rs. 5,00,00,000/- which was sanctioned for the purpose of construction of the said apartment. Such being the case, it is clear case that the Opposite Parties have not completed the construction work. The complainant has established before this Commission that she had paid such huge amount for purchase of the said flat. Therefore, it is a clear case for deficiency of service on the part of Opposite Party Nos.1 to 9 in not completing the work, when they have not completed the work and registered the said flat in the name of the complainant. The Opposite Party Nos.1 to 9 are liable to refund the amount of Rs.11,01,000/- which was paid by the complainant with the interest at the rate of 18% – The complaint is allowed – The Opposite Parties are directed to refund an amount of Rs.11,01,000/- to the complainant along with the interest at 9% per annum on the said amount from the date of respective payment till the date of realization – Complaint allowed. [Paras 9, 10].
Result: Complaint allowed.
ORDER
Ravishankar, Judicial Member—The complainant filed this complaint against the Opposite Parties alleging deficiency in service in not given possession of the flat by registering the sale deed, inspite of payment of the entire consideration amount. Hence, prays for refund of the entire amount with the interest at the rate of 18% and also compensation of Rs.15,00,000/- for deficiency of service and Rs.25,000/- towards litigation expenses.
2. The brief facts of the complaint are as under:—
The Opposite Party Nos.1 to 9 have started giving advertisement for construction for “T3 Green City – Rose” at Vamadapadav, Mangalore and agreed to complete the construction within 2015. The complainant attracted by the advertisement given by them and paid an amount of Rs.11,01,000/- as a consideration value of the flat. In this regard, the Opposite Parties had issued a receipt and undertaken to complete the work within 2015. There afterwards, the Opposite Parties have keep on issuing the letter on different dates disclosing the status of the building. The complainant noticed that inspite of issuance of a different notices and letter correspondence the Opposite Parties have not completed the construction work and it is learned that the bank has filed a complaint against the Opposite Parties for recovery of the loan which was sanctioned for the purpose of construction. The Opposite Parties have misguided and falsely assured to complete the construction and hand over the possession. The complainant finally filed a police compliant against the Opposite Parties u/s 403, 405, 415, 420 and other provisions of the Indian Penal Code, 1860 under PCR No.9560/2019. Even inspite of police complaint they are not undertaken to complete the construction work. Apart from the police complaint this complainant issued a legal notice on 13.05.2019 and called upon them to refund the amount paid towards the purchase of the flat, inspite of notice was refused and unclaimed. The complainant subsequently filed a complaint before this Commission alleging a deficiency of service and sought for refund of the entire amount of Rs.11,01,000/- with interest at the rate of 18% along with compensation of Rs.15,00,000/- and Rs.25,000/- towards litigation expenses in the interest of justice and equity.
3. Notice issued through substituted service by way of paper publication, inspite of service of notice through paper publication Opposite Party Nos.1 to 9 not appear before this Commission. Hence, they placed ex-parte.
4. The Opposite Party No.10 appeared through his counsel filed version and contended that during 2017 the Opposite Party No.1 T3 Urban Developers Ltd has approached this OP No.10 for sanction of the loan to the tune of Rs.5 crores as a security for repayment of the above said credit facility sanctioned by this Opposite Party. The Opposite Party No.1 along with others have created mortgage and hypothecation in favour of bank with respect to the immovable property and current assets with stocks and receivables. The Opposite Party Nos.1 to 9 Directors failed to repay the above said credit facility sanctioned by this bank having no option this Opposite Party had filed O.A No.652/2019 before Debt Recovery Tribunal at Bangalore for recovery of an amount of Rs.5,00,04,703.50/- (Rupees Five Crores Four Thousand and Seven Hundred and
Three and Fifty paise Only) with interest from January 2019 against the first and other Opposite Party. The said O.A is pending before DRT.
5. In view of the proceedings pending before DRT the rights of this Opposite Party Bank over the mortgage property and current assets has a secured the creditor is paramount. There is no any deficiency of service made out by the complainant against this Opposite Parties they are not liable to pay any compensation to the complainant and this Opposite Party is not a necessary party to this complaint. Hence, prays for dismissal of the complainant against this Opposite Parties.
6. The complainant filed affida
Failure of Developer to comply with contractual obligation to provide flat to a flat purchaser within a contractually stipulated period amounts to a deficiency.
Deficiency in services occurs when contractual obligations regarding timely delivery are not met, allowing for consumer redress.
“Non-delivery of subject flat within stipulated time and not giving the complainant till date any assurance with respect to exact date of delivery of possession amount to deficiency in service.”
Delayed possession of the apartment constitutes deficiency of service under the Consumer Protection Act, entitling the complainant to compensation.
False assurance of time delivery of possession – Opposite Parties are deficient in providing its services to the Complainants as the Opposite Parties had given false assurance to the Complainants wit....
(1) Possession – Directing possession of the apartment without the requisite certificates would be inappropriate and not in the interest of justice.(2) National Commission – National Commission deter....
Compensation - The complainants cannot be compelled to wait any more for the builder to deliver and they are entitled to seek refund of the money paid by them along with appropriate compensation.
(1) Housing Construction - The expression ‘service’ in Section 2(1) (o) means a service of any description which is made available to potential users including the provision of facilities in connecti....
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.