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2021 Supreme(Online)(Del) 4555

NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION, NEW DELHI
V. K. Jain, J
Allottees / Complainants – Appellant
Versus
M/s. Maruthi Corporation Ltd. – Respondent
Consumer Complaint No. 379 of 2013 | Consumer Complaint No. 411 of 2019 | Consumer Complaint No. 791 of 2019



Advocates:
For the Appellants/Petitioners: Ms. Vaishnavi
For the Respondents: Mr. B.K.V. Subrahmanyam

Consumers are entitled to a refund with interest if the promised service is not delivered, irrespective of arbitration clauses.

Headnote:The present Consumer Complaints arise under S.21 of the Consumer Protection Act, 1986, filed by the Allottees against M/s. Maruthi Corporation Ltd. for alleged deficiency in service concerning failure to complete construction of Villas in a timely manner. The Complainants sought a refund of Rs. 3,33,60,000 along with interest @24% per annum. The court held that the Opposite Parties failed to establish adequate justification for the non-completion of construction. The arbitration clause does not bar the jurisdiction of the Consumer Forum to entertain complaints of this nature. The court directed the Opposite Parties to refund the amounts paid along with interest quantified at 9% per annum due to the failure of construction.

Table of Content
1. allegations of deficiency in service (Para 1 , 2 , 3 , 4 , 5)
2. defense arguments on payment and arbitration (Para 6 , 7 , 8 , 9)
3. court's view on service deficiency and consumer rights (Para 10 , 11 , 12 , 13 , 14 , 15 , 16)
4. court orders refund with interest (Para 18 , 19 , 20 , 21 , 22)

1. The present Consumer Complaints have been filed under S.21 of the Consumer Protection Act, 1986 (for short "the Act") by Allottees / Complainants against Opposite Parties, M/s. Maruthi Corporation Ltd., having been allotted Units / Villas in the project "Green Fields" proposed to be developed by Opposite Partiesat Chattana Palli Village Shadnagar Mandal, Mahaboobnagar District. Alleging deficiency in service, the Complainants are before this Commission seeking refund of amount paid towards purchase of Units along with interest and costs.

2. Since the facts involved in these Complaints are similar except for minor variations in the Unit numbers and their sale consideration, these Complaints are being disposed off by this common Order. However, for the sake of convenience, facts as enumerated in Consumer Complaint No. 379 of 2013 have been discussed at length herein.

3. The Complainants are Indian Origin naturalized U.S. citizens and are resident in United States of America. The Complainants allege that Opposite Party No. 2 / Managing Director of Opposite Party No. 1 had approached and offered to sell them Villa in project "Green Fields" which was supposed to be a splendid private residence with ultra - modern facilities. Upon believing the Opposite Party and their Representatives, in the year 2005 the Complainants booked two Units / Plots being Plot Nos. 129 and 130 in the project for a total sale consideration of 4,00,00,000 (Rupees Four Crores Only) via Registered Sale deeds bearing Nos. 10938/2007 and 10940/2007 both dated 28.6.2007. It was mutually agreed between the Parties to develop two Villas in the agreed price of 2,00,00,000 (Rupees Two Crores Only) each in area of 1,000 sq. yards each. As per the Sale deeds, the consideration of the land value is 4,00,000 (Rupees Four Lacs Only) each. As per Clause 12 of the Agreement / Sale Deed, the construction work was supposed to be completed within 48 months from the date of sanction of Villa Plan. The Complainants allege to have paid an amount of 3,33,60,000 (Rupees Three Crores Thirty Three Lacs and Sixty Thousand Only) towards sale consideration of both the Plots.

4. The Complainants allege that the Opposite Parties have miserably failed to develop the above mentioned Township, inspite of receiving huge sums from Complainants. Complainants have relied on photographs taken on 13.8.2011 wherein it is illustrated that no development activity has been carried out by the Opposite Parties. In view of the gross deficiency in service as committed by the Opposite Parties, the Complainants, via legal Notice dated 17.8.2013, demanded refund of entire monies paid along with interest @24% p.a. The Opposite Parties vide letter dated 1.10.2013, replied to the said legal Notice, further raising demand of 6,00,10,004 (Rupees Six Crores Ten Thousand and Four Only) on account of dues and interest.

5. In view of the gross deficiency in service and unfair trade practices of the Opposite Parties, the Complainants have thus filed the present Consumer Complaint with the following prayer:
"Allow the complaint and direct the opposite parties to pay a sum of 3,33,60,000 (Rupees Three Crores Thirty Three lakh Sixty Thousand Only) along with interest @24% p.a. from the date of first payment from the year 2005 along with damages to the tune of 35 lacs towards mental agony, dereliction of service and damages.
Award cost of the litigation.
Pass any other or further order which this Hon'ble Commission may deem fit and proper in the facts and circumstances of the case."

6. The Opposite Parties have filed its Written Version and has denied the contents of the Complaint, further stating that the Complainants
























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