NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION, NEW DELHI
A. P. Sahi, President and Dr. Inder Jit Singh, Member
TDI Infrastructure Ltd. – Appellant
versus
Prakash Vohra and Anr. – Respondents
First Appeal No. 662 of 2015
(Against the Order dated 13/05/2015 in Complaint No. 221/2012 of the State Commission Delhi)
Decided on 16.10.2024
Consumer Protection Act, 1986 – Section 19 – Allotment of flat – Cancellation of unit due to non-payment – Refund of amount with interest without forfeiture of any earnest money – No illegality or irregularity in order of Supreme Court – In neither pre-cancellation letter nor in the cancellation letter, OP has either conveyed any specific reason to forfeit earnest money or made any mention of its intention to forfeit the earnest money – OP s have already initiated process sale to third party even before cancellation – Therefore, OP cannot forfeit any earnest money even if complainants have defaulted in some payments – National Consumer is in agreement with final directions of Supreme Court in ordering money refund with interest, without forfeiture of any earnest money – Order of Supreme Court is upheld. (Paras 10 and 13)
Result: First Appeal dismissed.
ORDER
Dr. Inder Jit Singh, Member.—The present First Appeal (FA) has been filed by the Appellant against Respondents as detailed above, under section 19 of Consumer Protection Act 1986, against the order dated 13.05.2015 of the State Consumer Disputes Redressal Commission, Delhi (hereinafter referred to as the ‘State Commission’), in Consumer Complaint (CC) No. 221/2012 inter alia praying for setting aside the order dated 13.05.2015 passed by the State Commission in CC/221/2012.
2. The Appellants were Opposite Parties before the State Commission and the Respondents were Complainants in the said CC/221/2012 before the State Commission. Notice was issued to the Respondents on 01.07.2016. Parties filed their Written Arguments/Synopsis on 18.11.2016 (Appellants) and 07.10.2016 (Respondents) respectively.
3. The present Appeal has been filed with a delay of 73 days as pointed out by the Registry. IA/5912/2016 has been filed for Condonation Delay. Delay in filing the First Appeal is condoned after hearing both sides and after considering the reasons mentioned in the application for condonation of delay and those adduced during the hearing.
4. Brief facts of the case as presented by the complainants and as emerged from the First Appeal, Order of the State Commission and other case records are that: -
The complainants/Respondents herein are Non-Resident Indian (NRI). On 20.06.2009, the complainants had booked Flat/Unit scheme of Opposite Party namely, “KINGSBURY TERRACE GARDEN” in TDI City, Kundli, Sonepat (Haryana) @2200/- per Sq.Ft. under construction linked plan along with 15% Registration Charges. Vide allotment letter dated 23.10.2010, a Unit No. TB-0603, admeasuring about 2400 sq.ft. in the said scheme of the OP was allotted to the Respondents and the complainants/Respondents deposited/paid total amount of Rs.37,25,346/- on various dates (till 20.12.2011), which was duly acknowledged by the OP-1. The agreement to sell dated 08.05.2009, proposed to give possession of the said flat to the complainants within 36 months from the date of the signing of the agreement to sell, i.e., by May 2012. The complainants received a letter dated 21.02.2012, of cancellation of provisional allotment of their unit from authorized person of OP-1 stating therein that due to non-payment of dues they have cancelled the provisional allotment of the unit, as per company’s policy, of the complainants. The OP-1 without informing or giving any notice to the complainants, cancelled the allotment in an arbitrary and illegal manner. On 22nd, 23rd and finally on 26th March 2012, Sh. Manmohan Singh, the representative of Complainants, visited the office of the OPs at G-7 Connaught Circus, who refused to listen to the complainants and threatened him also saying that there was nothing wrong in their actions. The OP also stated that the possession of the flat has been handed over to Sonia Verma (OP-4 before the District Forum). The OP thus failed in performing its part of the agreement even after receiving the consideration for the same. The complainants issued legal notice on 31.03.2012 and filed consumer complaint before the State Commission.
5. Vide Order dated 13.05.2015, the State Commission has allowed the complaint and directed the OP to a) to refund to the complainants the amount of Rs.37,25,346/- alongwith interest @9%; b) to pay compensation to the tune of Rs.50,000/-; c) to pay litigation charges of Rs.10,000/-.
6. Appellant(s) have challenged the Order dated 13.05.2015 of the State Commission mainly on following grounds:
i) The impugned order is erroneous and liable to be set aside on account of the fact that the same is not a speaking order. The impugned order does not deal with any of the defenses raised by the Appellants. The impugned order thus, does not speak for itself, hence, cannot be sustained.
ii) The impugned order is erroneous as the same has been passed without any consideration to the factual matrix of the case. The State Commission
Kailash Nath Associates vs. Delhi Development Authority
Bharat Amratlal Kothari and Anr. vs. Dosukhan Samadkhan Sindhi and Ors.
(1) Justified Withholding of Payments – An allottee is not necessarily “at fault” for stopping installments if it is evident that the builder is nowhere near completing the project by the committed d....
Flat Buyer’s Agreement – Denial of timely possession despite substantial payment – Payment of interest on refund of principal amount is necessary.
Forfeiture of earnest money beyond 10% of the sale price without evidence of actual loss is unreasonable; hence, only reasonable deductions from consumer funds are permissible.
(1) Delay – It is undisputed that there has been delay in the handing over possession of the Flat as per the Agreement and the OP had cancelled the allotment to the Complainant.(2) Question of Law – ....
One-sided contractual terms - Appellant-Builder cannot seek to bind the Respondent with such one-sided contractual terms.
Refund rights of consumers upheld despite payment issues, highlighting supplier's persistent obligation to deliver services as contracted under consumer protection principles.
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