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KERALA STATE CONSUMER DISPUTES REDRESSAL COMMISSION, THIRUVANANTHAPURAM
Ajith Kumar D., Judicial Member and
Radhakrishnan K.R., Member
S. Rajkumar – Complainant
versus
Kerala Chamber of Commerce and
Industry Chamber Corner and Ors. – Opp. Party
Complaint Case No.04 of 2015
Decided on 8.1.2024

Advocates:
Counsel for the Parties:
For the Complainant:G.S. Kalkura, Advocate
For the Opp. Parties: Asok Kumar J.S. for OP3
For the Opp. Parties: S. Reghukumar and George Cherian for OPs 1, 2 and 4

Headnote:

Consumer Protection Act, 1986 – Section 17 – Consumer Protection Act, 2019 – Section 47 – Services – Cancelation of Allotment – Direction for repayment / refund – On facts, the entire fault is on the part of the opposite parties in cancelling the allotment made in favour of the complainant in an arbitrary manner – Therefore, the complainant is entitled to get back the balance amount of Rs.5,00,000/- (Rupees Five Lakhs only) along with interest. The complainant would claim interest @ 18% per annum with regard to the payments made by him on various dates as evidenced through the receipts and exhibits produced and marked in support of the complaint. The Consumer Commission is not expected to award exorbitant rate of interest. But at the same time the complainant is found entitled to get legitimate interest in respect of the amount illegally retained by the opposite parties. Having due regard to the facts and circumstances of the case it is found that the complainant is entitled to get interest in respect of the payment made by him till refund @ 8% per annum.He is also entitled to get the very same rate of interest with respect to the amount of Rs.5,00,000/- (Rupees Five Lakhs only)to be refunded by the opposite parties.All the opposite parties are found jointly and severally liable to pay the amount received along with interest in respect of the amount retained by them during the period mentioned in the complaint – Complaint allowed. [Para 20].

Result: Compliant allowed.

JUDGMENT

Ajith Kumar D., Judicial Member.—This is a complaint filed by Sri. Rajkumar against opposite parties 1 to 4 attributing deficiency in service and unfair trade practice. The case of the complainant in brief is as follows:

The 1st opposite party is a company incorporated under the Companies Act having its registered office at Kochi. The 2nd opposite party is the present Chairman and the 3rd and 4th opposite parties are the Former Chairmen of the 1st opposite party. The opposite parties are directly involved in the affairs of the company. The complainant had booked a studio flat at the Kerala Trade Centre, a project of the Chamber of Commerce and he had paid a sum of Rs. 2,00,000/- (Rupees Two lakhs only) as booking advance and the 1st opposite party had issued a receipt for Rs. 1,00,000/- (Rupees One Lakh only) dated 03.12.2007. The 3rd opposite party who was the Chairman of the Company at the relevant time had assured that the construction will be completed soon and possession of the flat will be handed over to the complainant before December 2009. The booking was made on the basis of the assurance and representation made by the 3rd opposite party though no formal agreement was executed. On 03.01.2008, the 4th opposite party, the then Chairman had sent a letter to the complainant that the application put in by him is under progress and requested to make payment of 25% of the total amount at the time of confirmation and the remaining amount in instalments. On 23.09.2008, the 4th opposite party had issued another letter to the complainant that the offer of the complainant was accepted and the complainant had been allotted Apartment No. 4 on the 11th floor. The complainant had paid Rs. 15,00,000/- (Rupees Fifteen Lakhs only) to the 1st opposite party by way of a cheque dated 29.09.2008 towards 25% of the total land value and apartment cost for which a receipt was issued by the opposite party on 29.09.2008.He was also informed that a formal agreement will be entered into very soon. The 1st opposite party had also forwarded the plan of the studio apartment signed by the 4th opposite party. The payment of Rs. 17,00,000/- (Rupees Seventeen Lakhs only) by the complainant was received by the opposite parties as advance for the apartment in the 11th floor of the building.

2. On 05.06.2009 the complainant had issued a letter to the 1st opposite party requesting to inform about the formalities to be initiated before signing the agreement. Thereafter on 07.07.2010 the opposite party had issued a letter to the complainant requesting him to execute the agreement. The construction was moving in a snail phase. The 1st opposite party found fault with the complainant in not causing execution of agreement. But no draft agreement was forwarded to the complainant.

3. On 19.07.2010 the complainant had again issued a letter to the 1st opposite party requesting to furnish a draft of the agreement with a specification regarding the actual date of completion and handing over of the apartment. He had also expressed his willingness to make payment of the balance instalments.

4. The 1st opposite party had sent a draft agreement, but the provisions contained in the agreement were contrary to the representation and assurance made by the opposite party at the time of receiving the booking advance and hence the complainant had suggested certain amendments to the agreement by a registered letter dated 09.08.2010 which was duly received by the 1st opposite party on 11.08.2010. But there was no response. The complainant was waiting for the amended agreement so as to execute the same and to make the balance payment. In the middle of April 2013 complainant had gone to the office of the 1st opposite party and enquired about the progress of the work. But he was told that the allotment in his favour was cancelled in the first week of April 2013. So, on 23.04.2013 the complainant sent a letter to the 1st opposite party to return the advance amount of Rs. 17,00,

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