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2025 Supreme(Online)(CS) 30775
CONSUMER STATE
SANGITA DHINGRA SEHGAL, CJ, MS. PINKI, J
MRS. REENA AGGARWAL – Appellant
Versus
M/S. K.D.P. INFRASTRUCTURE PVT. LTD – Respondent
Complaint Case No. 342/2017
For the Appellants/Petitioners: Dr. R.S. Gupta
For the Respondents: Mr. Ashawani Kumar
Contractual obligations and deficiency in service lead to liability for damages and refund in consumer disputes.
Headnote:(A) Consumer Protection Act, 1986 - Sections 17(1)(a) and 17(2) - Deficiency in service and unfair trade practice alleged against the builder for failure to deliver possession of the apartment within the stipulated time - The court found that the builder had failed to adhere to the conditions of the Apartment Buyer Agreement, leading to a ruling in favor of the complainants regarding possession and financial compensation. (Paras 12, 23, 26, 27)
(B) Jurisdiction - Territorial and Pecuniary jurisdiction of the State Commission to adjudicate the complaint confirmed under Section 17 of the Act as the claim exceeds the mandated limit. (Paras 12, 18)
Facts of the case:
The Complainants booked an apartment in a project but faced significant delays in construction and possession, leading to a complaint for deficiency in service against the builder and the bank involved in financing.
Findings of Court:
The Opposite Party No. 1 was found deficient for failing to fulfill contractual obligations regarding timely possession, and was ordered to refund the amount with interest, along with compensation for mental anguish.
Issues: Whether the complaint falls under the jurisdiction of the State Commission amidst the claims of deficiency in services by the builder.
Ratio Decidendi: The court determined that the Opposite Party No. 1 failed to meet its service obligations as per the Apartment Buyer Agreement, justified by the delay and non-delivery of possession.
Result: The Opposite Party was directed to deliver possession and refund the payment with interest.
| Table of Content |
|---|
| 1. complaint filed for deficiency in service and unfair trade practice. (Para 1 , 2 , 3) |
| 2. jurisdictional determination based on statutory provisions. (Para 10 , 11 , 12 , 13) |
| 3. findings on deficiency in service and its implications for the builder. (Para 21 , 23 , 25) |
| 4. final directives concerning possession, refund, and damages. (Para 26 , 27) |
JUDGMENT
1. The present Complaint has been filed before this Commission by the Complainant alleging deficiency in service and unfair trade practice on the part of Opposite Party and has prayed for the following reliefs:-
(i) to direct the Respondent no.1 / opposite party to hand over the physical possession of the aforesaid flat no. A- 203 "GRAND SAVANA" 2nd Floor, Tower-A, complete in all respects to the complainants immediately and execute all necessary and required documents in respect of the said flat in favour of the complainants;
(ii) quash or set aside the illegal demands raised by the Respondent no.1/ opposite party dated 20.12.2012, 18.10.2013 and 09.11.2016 (before Mediation) and other charges;
(iii) direct the Respondent no.1 & 2 to pay the complainants the amount of interest paid by complainants Rs. 19,77,633=00 with interest @ 24 % per annum as 41 PRE-EMIs paid by complainants under different amounts and rest 47 EMIs @ 26,175=00 per month have been paid out of 152 EMIs by complainants pertaining to the loan amount of 22,00,000=00 vide A/c No. PH 1260100187345 existing in the joint names of the complainants from 01.11.2009 till date and pay the interest on Rs.4,55,000=00 with 24% compound interest, paid by complainants from respective dates which has been used by Respondent no. 1 till realization;
(iv) direct the Respondent No.1 to pay the amount of Rs. 18,00,000=00 with interest @24% per annum, as rent amount paid by complainants for 90 months @ Rs.20000=00 per month from the date of execution of the Allotment Letter i.e. September, 2009 till date as the complainants have been residing under tenancy and the rent amount paid by complainants since the date of executing the Allotment Letter of the flat i.e. September 2009 till date;
(v) an order thereby directing the Respondent no.1 & 2 to pay Rs. 10,00,000=00 each to the complainants as special costs for the physical harassment, mental pain & agony caused by willful misconduct of the Respondent No.1& 2 for mental pain, agony as well as physical harassment suffered by the complainants, along with interest @24% per annum till its realization to the complainants;
vi) an order thereby directing the Respondents to pay Rs. 1,00,000/-to the complainants towards the legal expenses incurred by the complainants;
vii) any other order(s), relief(s) which this Hon’ble forum may deem fit and proper may kindly be passed in favour of the complainant and against the respondents, in the interest of justice.”
2. Brief facts necessary for the adjudication of the present Complaint are that the Complainants booked Apartment bearing No. 203, IInd Floor in Tower ‘A’ a residential project named “Grand Savana” measuring approx. 1550 sq. ft. being developed by the Opposite Party No. 1 (M/s. K.D.P. Infrastructure), located at NH- 58, Raj Nagar Extension, Ghaziabad vide application dated 14.01.2009. The Apartment Buyer Agreement was executed between the Complainant and the Opposite Party No. 1 on 24.09.2009, with a clear understanding with regard to timely possession of the said Apartment within 36 months from the date of signing of the Apartment Buyer Agreement.
3. The Complainants till date have made a total payment amounting to Rs.54,21,210/- (including a loan amount of Rs. 49,85,000/- from the Opposite Party No. 2 for which the Complainant continues to pay EMIs to the Opposite Party No. 1) towards the sale consideration of the Apartment. Despite the payment of a significant sum, when the Complainant visited the site to check the progress of the construction in April 2017, it was found that no significant construction work had been completed, th
