Legitimate claims for refund and compensation under Consumer Protection Act upheld despite unjustified project cancellation.

1. Brief facts that in the year 2014, the Complainants booked a 2 - BHK unit / flat in the project 'Coral City' of M/s Radhakrishna Buildtech Pvt. Ltd (hereinafter referred to as the "Opposite Party No. 1") at Jaipur, Rajasthan. Each Complainant paid booking amount of Rs.2,50,000 and the letter of allotment was issued. It was alleged that the possession of each flat was to be delivered by 31.12.2015. However, the Opposite Parties failed to complete the project and handover possession of the respective units by the said date. For the undisclosed reasons the Opposite Parties arbitrarily cancelled the project and vide letter dated 15.4.2017 offered to refund the booking amount along with interest @ 9% p.a. to each Complainants. However, even after lapse of 6 months the Opposite Parties did not refund the booking amount of Rs.2,50,000. Therefore, on 14.12.2017, a legal notice was served upon the Opposite Parties, but there was no avail.

2. Being aggrieved, the Complainants filed the instant Complaint under S.12(1)(c) read with S.21(a)(i) of the Consumer Protection Act, 1986 against the Opposite Parties / Builder Co. for indulging in unfair trade practice and deficiency in services. The Complainant prayed for a direction to the Opposite Parties to refund the booking amount of Rs.2,50,000 at an interest rate of 21% p.a. from the date of booking to each Complainant; a compensation of Rs.5,00,000 towards mental agony to each Complainant; and Rs.2,00,000 as litigation cost to each Complainant.

3. The Director of the Opposite Party Builder Co., Mr. Giriraj Daga filed a joint written statement. It was submitted that the builder Co. floated a scheme 2 BHK flat in "CORAL CITY" at Jaipur and the booking amount of Rs.2, 50,000 was accepted from each Allottees during July to November 2014. The Opposite Parties raised preliminary objection on maintainability of the Complaint that the Complainants booked the flats not for their personal use, but for investment purpose. The Complaint was filed intentionally before this commission under S.12(1) c of the Act, 1986 to avoid the jurisdiction of the District Forum, Jaipur. It was further submitted that due to unavoidable circumstances, the Opposite Parties had to cancel the said project and it was intimated to each Allottees without any delay and requested them to file an affidavit with respect to "cancellation of booking" in order to refund the booking amount of Rs.2.5 lakh at an interest of 9% p.a. But none of the Allottees furnished the affidavit; there fore the refund of their booking amount could not be initiated by the Opposite Parties. The Opposite Parties also denied acknowledgement of any legal notice dated 14.12.2017 from the Allottees.

4. We have perused the material on record. It is an admitted fact that in the year 2014, the Opposite Parties have accepted the booking amount of Rs.2.5 lakh from each Complainant for the booking of a 2 BHK flat in their project. Admittedly, due to some unavoidable circumstances, the Opposite Parties, have cancelled the construction project and intimated the Complainants. The Opposite Parties also agreed to refund Rs.2.5 lakh with interest @ 9% p.a. and also sought an affidavit from the Complainants about cancellation of the booking.

5. We have perused the cancellation letters issued by the builder co., surprisingly, all the letters are undated, and signed by an authorized signatory of the Opposite Parties. In our view, it was vague and casual approach of the Opposite Parties. Nothing is forthcoming as when they have cancelled the project and when the cancellation letters were sent to the respective Complainants. We further note that the "cancellation affidavit" dated 15.9.2017 from each C