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2024 Supreme(P&H) 1385

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
VINOD S. BHARDWAJ, J.
M/s Crystal Buildtech Pvt. Ltd. – Appellant
Versus
National Consumer Disputes Redressal Commission and Another - Respondents
CWP No. 4133 of 2024
Decided On : 20-05-2024

Advocates Appeared:
For the Appellants : Shailender Kashyap, Parshant Sethi

Consumer courts' jurisdiction is based on statutory provisions, focusing on protecting consumer interests against defaults. Non-compliance by service providers cannot be excused by technical arguments.

Headnote:(A) Consumer Protection Act, 2019 - Section 34 - Revision petition against National Consumer Disputes Redressal Commission - Petitioner-Company alleged lack of jurisdiction, compliance with contract obligations, and exemption from occupancy requirements - The petitioner offered possession of property in advance of contractual deadline; however, the consumer's non-payment resulted in a complaint and subsequent decisions against the petitioner. (Paras 4, 12, 15)

(B) Jurisdiction - The relevant consumer court had jurisdiction due to the residence of the complainant within its limits as defined under Section 34 - Argument on jurisdiction was deemed untenable due to clear statutory provisions that apply. (Paras 8, 12)

(C) Contractual Obligations - The completion certificate was required under licensing rules, and failure to provide was a lapse by the petitioner. The court ruled it was improper to mislead regarding contractual compliance. (Paras 14, 15)

Facts of the case:
Petitioner challenged the NCDRC’s dismissal of its revision petition concerning a consumer complaint about delayed possession of real estate. After payment of substantial sums, the petitioner claimed timely compliance; however, the consumer alleged delays, leading to litigation.

Findings of Court:
The court found the petitioner failed to establish any jurisdictional or procedural error in the consumer courts and affirmed the consumer's right to seek a refund due to late possession offerings.

Issues: Whether the consumer court had jurisdiction over the case; whether the petitioner fulfilled contractual obligations; and the distinction between completion and occupancy certificates.

Ratio Decidendi: The court held that jurisdiction was properly conferred upon the District Commission according to statutory guidelines; the petitioner could not benefit from its non-compliance, and misrepresentation could not be tolerated.

Result: Petition dismissed.

Table of Content
1. overview of the case and background of the dispute. (Para 1 , 2 , 3 , 4 , 5)
2. arguments presented by the petitioner. (Para 6)
3. court's analysis of territorial jurisdiction. (Para 8 , 11 , 12 , 13)
4. clarification on certificates and obligations. (Para 14 , 15)
5. final conclusion dismissing the petition. (Para 16)

JUDGMENT :

VINOD S. BHARDWAJ, J.

CM-5595-CWP-2024

For the reasons mentioned in the application, the same is allowed and Annexures P-17 to P-24 are taken on record.

CWP-4133-2024

1. Challenge in the present writ petition is to the order dated 27.10.2023 passed by the National Consumer Disputes Redressal Commission, New Delhi in the matter of M/s Crystal Buildtech Pvt. Ltd. vs. Rupesh Gupta in Revision Petition No. 1570 of 2023.

2. Learned Counsel appearing on behalf of the petitioner inter alia contends that the petitioner-Company is dealing in the Real Estate business and has developed a plotted township namely “Krish Seasons” at Village Bureda, Tehsil Tijara, District Alwar, Rajasthan.

3. The respondent No.2-Consumer had approached the petitioner- Company and showed his interest in the project developed by the petitioner. He made an application for provisional registration of a plot admeasuring an area of 120.09 sq. yards therein. A booking amount of Rs. 1,80,000/- was paid through Cheque No. 742971 dated 19.04.2014 drawn on ICICI Bank. The provisional letter of allotment was issued on 29.05.2014 to the respondent No. 2 informing that Plot No. 137 in the said project had been provisionally allotted to him. The allotment agreement was eventually executed on 31.10.2014. A total payment of Rs. 16,79,661/- was made by respondent No.2-Consumer between the period from 19.04.2014 to 20.12.2016 against the total sale consideration of Rs. 23,95,795/-. It is further contended by the Counsel that a completion certificate with respect to the plotted development on the said project was issued to the petitioner on 18.07.2018 and thereafter an offer of possession was sent to the respondent- Consumer vide letter dated 20.07.2018. He contends that the possession of the developed was to be delivered within 24 months of commencement of construction, which as per the respondent-Consumer, commenced on 05.09.2016. Hence, the possession had to be delivered by the petitioner- Developer on or before 04.09.2018 and that the petitioner-developer was compliant of its contractual obligation by offering possession on 20.07.2018 i.e. nearly two months before the time agreed under the agreement, for delivery of possession. The respondent No.2-Consumer was called upon by the petitioner company to clear the outstanding installments towards the cost of the plot in question so that the actual physical possession could be handed over, however, no payment was made. Instead, the respondent No.2-consumer filed a consumer complaint before the District Consumer Disputes Redressal Commission, Gurugram (for short “DCDRC, Gurugram”) bearing CC/458/2019 which was withdrawn on technical grounds seeking liberty to file a fresh complaint. Thereafter the Consumer Complaint No. 230 of 2020 was filed by respondent No.2 before the DCDRC, Gurugram even though the company was not in default.

4. The petitioner-Company however entered appearance before the DCDRC, Gurugram and filed its reply taking various objections with respect to the maintainability of the said complaint as also to the territorial jurisdiction. The DCDRC, Gurugram passed its award on 02.08.2021 against the petitioner-Company and in favour of respondent No.2 directing the petitioner-Company to refund the deposited amount of Rs. 16,79,661/- alongwith interest @ 9% per annum from the date of deposit of each installment till its realization alongwith compensation towards mental agony and litigation expenses as well.

5. Aggrieved thereof, the petitioner-Company preferred an appeal before the State Consumer Disputes Redressal Commission, Panchkula (for short “SCDRC, Panchkula”) registered as Appea

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