IMPORTANT POINTS
(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 determines that the Complainants are entitled to a refund of the amounts deposited for the purchase of the apartment.

ORDER

These Consumer Complaints have been filed alleging deficiency in service and unfair trade practice on the part of the Opposite Parties, and seeking refund with ancillary reliefs.

2. The facts and question of law involved in these Complaints are similar in all material particulars except for minor variations in the dates, consideration amount and Flat numbers, therefore these Complaints are being disposed of by this common Order. However, for the sake of convenience, CC/1938/2019 is treated as the lead case and the facts enumerated hereinafter are extracted from this Complaint.

3. The factual background, in brief, is that in the year 2011, the Opposite Party No. 1 represented to the Complainants that they were developing a project named “Townsville” on land located at Sy No. 352, Hulimangala Village, Jigani Hobli, Anekal Taluk, Bengaluru, Karnataka, and claimed to be the exclusive owners of this land. The Complainants submitted an application for the allotment of a residential apartment on 15.03.2012 and was subsequently allotted Unit No. 31A in Block No. 16, with a total area of 3,477 Sq. Ft. and two parking spaces, as per the Allotment Letter dated 24.03.2012. Following the payment of Rs. 5,00,000/- to the Opposite Party No. 1, a Sale Agreement was executed on 26.06.2012, setting the total sale consideration at Rs. 1,76,33,762/-. According to the Agreement, the possession of the flat was assured by December 2013, with an additional grace period extending to June 2014. However, the Opposite Party No. 1, without prior notice to the Complainants, entered into a Development Agreement with Opposite Party No. 2. This agreement entailed constructing, marketing, selling, and realizing the sales proceeds of the unsold units and overseeing the completion and handover of the project. In adherence to the payment schedule, the Complainants made a total payment of Rs. 1,21,47,705/- through various means, including bank loans. Despite this, the construction was incomplete as of December 2013. The Complainants raised the issue with the Opposite Party No. 1 but did not receive an adequate response. It later emerged that Patel Realty (India) Limited, the original party to the Agreement, had undergone a Corporate Insolvency Resolution Process and was amalgamated with Opposite Party No. 1. Due to the continued non-delivery of the flat by 2019, the Complainants issued a Legal Notice dated 12.06.2019 to the Opposite Party No. 1. However there was no proper response. Aggrieved with the deficiency in service on the part of the Opposite Parties, the Complainants have filed the present complaint.

4. In view of the aforesaid facts, the Complainant prayed for the following reliefs -

“(A) Allow the present consumer complaint;

(B) Declare the act of the OPs of non - completion & delay in the project “Townville”, an act of “Deficiency in service” under Section 2 (g) of the Consumer Protection Act, 1986 & the Opposite Party and its Directors are liable to be accordingly punished accordingly;

(C) Direct the Opposite Parties deliver the possession of the subject flat along with interest at the rate @24% per annum till date of realization which at the date of filing of the instant Complaint is Rs. 1,76,33,762/- (Rupees One Crore Seventy Six Lacs and Thirty Three Thousand and Seven Hundred and Sixty Two Only)

(D) Direct the Opposite Parties for reimbursement of interest paid till 30.08.2019 towards Loan Financing of the subject Flat of the Complainant;

(E) Direct the Opposite parties to reimburse towards rentals to stay in alternate accommodation till the possession is finally granted to the Complainant;

(F) Direct the Opposite Parties to furnish Rs. 25,00,000/-( Rupees Twenty Five Lacs Only) towards Mental Agony faced by the Complainant;

(G) Direct the Opposite Party to reimburse amount towards litigation cost incurred by the Complainant to the tune of Rs. 5,00,000/- (Rupees Five Lacs Only);

(H) In the interim, this Hon’ble Commission be