NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION, NEW DELHI
Subhash Chandra, Presiding Member and Dr. Sadhna Shanker, Member
Prescon Realtors & Infrastructures Pvt. Ltd. and Anr. – Appellants
versus
Cynthia A. D’Souza – Respondent
First Appeal No.1863 of 2019
(Against the Order dated 31/07/2019 in Complaint No. 557/2015 of the State Commission Maharashtra)
Decided on 10.10.2024
Consumer Protection Act, 1986 – Sections 2(1)(d) and 19 – Possession of flat – Price escalation – Deficiency in service – Consumer – No evidence on record supporting claim that complainant is not a consumer – As per complaint main prayer is for the possession of flat costing Rs.58,78,485/- & with compensation asked for falls well within the pecuniary jurisdiction of SC – For alleged escalation, no evidence has been placed on record by builder – Complainant deposited Rs.5,59,391/- in SC in compliance of order of SC, however, possession of flat in question was not handed over – Builder had not handed over possession of flat in question till date even after receiving almost 50% of sale consideration of flat – Order of SC is modified; complainant is directed to deposit balance amount as per agreement of sale price of flat to builders – Builder is directed to handover possession of flat to complainant complete in all respects within 2 weeks – Builder is directed to pay compensation in form of interest @ 6% p.a. on amount deposited from promised date of handing over possession of flat till dt. of handing over of possession of flat, failing which rate of interest shall be enhanced to 9% p.a. – Compensation of Rs. 1 lac awarded by SC towards mental agony is set aside. (Paras 20 to 23 and 25)
Result: Appeal disposed of.
ORDER
Dr. Sadhna Shanker, Member.—The present appeal has been filed under Section 19 of the Consumer Protection Act, 1986 (for short “the Act”) in challenge to the order dated 31.07.2019 passed by the State Consumer Dispute Redressal Commission, Maharashtra (hereinafter referred to as the “State Commission”) in Complaint No. 557 of 2015 whereby the complaint was partly allowed.
2. We have heard the learned counsel for the appellants (hereinafter referred to as the ‘builder’) and the learned counsel for the respondent (hereinafter referred to as the ‘complainant’) and have perused the record including inter alia the impugned order dated 31.07.2019 and the memorandum of appeal.
3. The facts, in brief, are that the complainant purchased a flat bearing No. 304, admeasuring 870 sq.ft. carpet area, on the 3rd Floor of the building No.18 of Hill View in the Prestige Residency Complex for a total consideration of Rs.58,78,485/- from the builder and the builder had executed an agreement on 17.12.2012 in favour of complainant. It is alleged that as per agreement, possession of the flat was to be given on or before December, 2014. The builder, vide its letter dated 09.01.2013, demanded an amount of Rs.2,85,651/- towards amount of construction of seventh slab along with service tax and VAT. Accordingly, the complainant deposited that amount with the builder vide cheque on 25.01.2013 and obtained receipt thereof. It is alleged that the builder failed to handover possession of flat to the complainant within the stipulated period. The complainant further alleged that in January 2015 the builder demanded additional amount at the rate of Rs.1,500/- per sq.ft. for getting possession of flat and threatened the complainant to unilaterally terminate the agreement in case the said amount is not paid. As per letter dated 06.02.2015, the builder informed complainant that they are not in a position to complete the construction in time for want of sanctions and approvals from Corporation. It is also alleged that the builder informed the complainant that they are not in a position to handover possession of flat to complainant unless escalation price of flat is paid by her.
4. Being aggrieved, the complainant filed a complaint before the State Commission with the following prayer:
a. This Hon’ble Forum be pleased to direct the Complainant to complete the finishing work with all amenities as per the Agreement and handover to the Complainant flat No.304 on the 3rd Floor admeasuring 870 sq. ft. and 80.82 sq. mtrs. carpet area in building No.18, Hill View in Prestige Residency Complex, Kavesar situated at Waghbil Naka, Kavesar, Thane.
b. The Opposite Parties be directed pay Rs.9,12,000/- (towards mental harassment Rs.5,00,000/-, compensation @ 18% p.a on the amount paid as on December 2014 till today Rs.3,08,000/- and towards legal expenses Rs.1,04,000/- to the Complainant and further compensation @ 18% p.a on the amount paid to the complaint till handing over of possession of the said flat to the Complainant.
c. In the alternative the Opposite Parties be directed to give an ownership flat in the same project after giving options to the Complainant and as per final choice of the Complainant by necessary deed of corrections to the original agreement dated 17/12/2012.
d. Pending the hearing and final disposal of this complaint the Opposite Parties themselves, their employees, agents, representatives be restrained by the order of this Hon’ble Commission from creating third party interest in flat no.304 on 3rd floor, in building No.18, Hill View, Prestige Residency Complex, Kavesar situated at Waghbil Naka, Kavesar, Thane.
5. After appreciation of the facts of the case, the State Commission vide Order dated 31.07.2019, partly allowed the complaint with following directions:
(ii) Opponents are hereby directed to handover possession of Flat No. 304 on the 3rd Floor admeasuring 870sq.ft. situated in building no. 18, Hill View in Prestige Residency Complex,
Kavita Ahuja vs. Shipra Estate Ltd. and Jaikrishan Estate Developers Pvt. Ltd. and Ors.
The builder's delay in possession constituted deficiency of service, requiring compensation with interest under consumer protection law.
Party payment - The complainant undoubtedly is entitled to be duly compensated for the loss and injury inflicted upon him. He is also entitled to a flat in lieu of which he had made part payment.
Multiple compensations – Multiple compensations for singular deficiency is not justifiable.
Deficiency in Service – Deficiency in service is manifest as possession has not been offered by the respondents despite payment of nearly 90% of the consideration agreed upon between the parties.
(1) Force Majeure - Force Majeure is a clause that is included in contract to save from the liability for unforeseen and unavoidable catastrophic that interrupt. (2) “Occupation Certificate” - Issue ....
The court affirmed that delays by builders in possession delivery create a continuing cause of action, entitling consumers to remedies under the Consumer Protection Act.
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.