NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION, NEW DELHI
Dr. Inder Jit Singh, Presiding Member
Rakesh Singh and Anr. – Appellants
versus
Great Mohali Area Development Authority and Anr. – Respondents
First Appeal Nos.246 of 2019 and 205 of 2021
Decided on 16.10.2024
Allotment of flat – Failure to deliver possession of apartment within stipulated period despite making substantial amount – Refund of amount without forfeiture of money – Supreme Court went wrong in interpreting relevant clauses and holding that OP Authority is entitled to forfeit 10% of amount – Complainant is entitled to refund in accordance with Clause 3(II) and action of OP in forfeiting 10% is not correct – Order of Supreme Court suffers from material irregularity and cannot be sustained – OP Authority directed to refund entire amount paid by complainant alongwith interest @ 8% p.a. (Paras 10 and 11)
Result: First Appeal allowed.
ORDER
The present First Appeals (FAs) have been filed against the common order dated 03.10.2018 of State Consumer Disputes Redressal Commission, Punjab (hereinafter referred to as ‘State Commission’) in CC No. 55 of 2018. FA No. 246 of 2019 has been filed with a delay of 2 days and FA No. 205 of 2021 has been filed with the delay of 760 days. In FA No. 246 of 2019, no condonation of delay application has been filed. Delay of 2 days is condoned after considering the reasons adduced during the hearing. In FA No. 205 of 2021, an IA No. 2552 of 2021 has been filed for condoning the delay. The delay as reported by the Registry is 760 days while delay mentioned in the said IA is 378 days. FA was filed on 15.03.2021. Period from 15.03.2020 to 14.03.2021 i.e. 364 is excluded being the Covid exempted period. Hence the balance delay, after excluding the statutory permissible
period of 30 days comes to 413 days. Interalia, following reasons have been given in the said IA:
a. That the free certified copy of the impugned order was dispatched by the State Commission on 28.12.2018 and received by the Appellant on 15.01.2019 and was diarized in the office of Appellants.
b. Thereafter, the orders of the State Commission were examined by Legal Cell, GMADA on 10.05.2019 and recommended filing of appeal against the impugned order of the State Commission. The file was sent to the Estate Officer (Housing) on 10.05.2019.
c. Subsequently, the Estate Officer (Housing) marked this file to the higher authorities of GMADA on 16.05.2019 for taking the approval for filing the First Appeal against the impugned order before this Hon’ble Commission and for engaging the panel counsel for filing the said appeal.
d. That on 17.05.2019 the Chief Administrator GMADA gave the approval for filing the First Appeal against the impugned order.
e. The file was sent to the office of Ld. Advocate General, Punjab for engagement of panel counsel and thereafter the file was received on 13.06.2019 alongwith sanction to engage the present counsel for filing the present appeal on 28.06.2019.
f. The certified copy of the impugned order was sent to the counsel in Delhi by post on 06.07.2019. Thereafter, the necessary documents were collected in the matter and sent to the Counsel in Delhi by post which were received on 6.7.2019
g. During the intervening Diwali holidays, the counsel for the Appellant had the office white washed and during that process several new files of the counsel were misplaced. Since the papers involving the instant matter had been received contemporaneously, the same had not been inadvertently diarized by the office of the counsel for the Appellant and were misplaced by the staff of the Appellant’s counsel.
h. After the winter break, the papers of the instant matter were located and tied alongwith some disposed of files in the storage room of the office of the Appellant’s counsel.
i. Thereafter, drafting of the Appeal started.
j. Due to outbreak of Covid-19, the Hon’ble Supreme Court passed various orders from time to time.
k. Drafts of the instant appeals were sent to the Appellants and the appellant provided the approved draft for filing on 12.03.2021.
Although, we do not find the reason convincing, however, considering that cross appeal pertaining to same case i.e. FA No. 246 of 2019 is being taken up on merits, in the interest of justice, we condone the delay in filing the FA No. 205 of 2021 and take up the case on merits.
Notice was issued to the respondent in both the FAs. Complainant-Rakesh Singh filed Written arguments on 30.4.2024 in FA No.246 of 2019.
2. Brief facts of the case as presented by the Complainant and as emerged from the FAs, Order of the State Commission and other case records are that Complainant applied for allotment of residential allotment Type-2 in Purab Premium Apartments at Sector 88, SAS Nagar, Mohali under the general category with the OP. The complainant was declared successful in draw of lots held on 19.
Allotment – Once an allotment letter is made its conditions prevail over the conditions mentioned in the earlier LoI.
(1) Possession - If the developer fails to deliver possession of the allotted plot/flat within the stipulated time, the allottee is under no obligation to accept an alternate plot.(2) Interest - When....
Authorities must clarify payment structures and ensure timely refunds, as consumer rights are pivotal in contractual agreements.
Flat Buyer’s Agreement – Denial of timely possession despite substantial payment – Payment of interest on refund of principal amount is necessary.
(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....
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Real Estate – SC in cases of delay in offer of possession has ordered refund with 9% S.I. per annum which appears to be reasonable.
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