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2022 Supreme(Online)(Del) 7242

NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION, NEW DELHI
R. K. Agrawal, J
Complainants – Appellant
Versus
Opposite Party – Respondent
Complaint No. 51 of 2020



Advocates:
For the Complainants: [N/A]
For the Opposite Party: [N/A]

The court affirmed consumer rights to timely possession and reasonable compensation despite contractual waivers, emphasizing obligations of developers in real estate transactions.

Headnote:(A) Consumer Protection Act, 1986 - Sections 2(1)(d) and 24A - Delay in possession - The Opposite Party failed to deliver possession as per the Buyer’s Agreement, resulting in deficiency of service. Court awarded compensation at 9% simple interest from the promised delivery date, emphasizing the obligations of developers towards consumers. (Paras 24, 25)

(B) Contractual Terms - The Opposite Party argued that the Complainants had waived their right to compensation through indemnity agreements, but the Commission found such clauses one-sided and not enforceable against the Complainants. (Paras 17)

Facts of the case:
The Complainants purchased a residential unit but faced a delay of over four years beyond the promised date of possession as stipulated in the Buyer’s Agreement. Despite repeated communications, the Opposite Party failed to justify the delay and presented additional charges.

Findings of Court:
The Opposite Party was found deficient in service for failing to deliver possession on time and was directed to pay compensation along with interest to the Complainants. The increase in unit cost was ruled as unjustified without consent from the Complainants.

Issues: Whether the Complainants are entitled to compensation for delayed possession and whether the contractual clauses inhibiting such claims are enforceable.

Ratio Decidendi: The court held that consumers retain rights to compensation even when signing indemnity agreements that appear to forfeit those rights when they are one-sided or not accepted fairly. The developer must expedite possession in accordance with agreed timelines or compensate for delays.

Result: Complaint disposed in favor of the Complainants with a directive to the Opposite Party to deliver possession and compensate with interest.

Table of Content
1. delay in possession and obligations of the developer. (Para 1 , 2 , 5 , 9 , 15)
2. contracts and fairness in compensation terms. (Para 10 , 11 , 18 , 19)
3. consumer rights under the consumer protection act. (Para 12 , 14 , 21)
4. court's guidelines on reasonable compensation for delays. (Para 17 , 20 , 24)

1. In the Project, christened as “The Enclave” situated at Sector - 66, Gurgaon, Haryana, admeasuring super area 1920 sq. ft., launched by the Opposite Party, a Residential Unit, being Unit No. TEN - P - F01-03, was purchased by the Complainants in order to provide their family with quality standard of living in a spacious apartment. The Complainants are the subsequent Buyers of the Unit that had been purchased by them from one Ms. Archana Tanwar (hereinafter referred to as the Original Buyer) on 5.7.2013. Initially, the Original Buyer had booked one such Unit in the Project known as “The Meadows” of the Opposite Party but on the option given to her by the Opposite Party vide letter dated 8.6.2009 (Annexure C - 2), the booking was transferred to a new Project, namely, “The Enclave” and the Unit in question had been allotted to her vide Provisional Allotment Letter dated 13.1.2010 (Annexure C - 3). The sale consideration for the said Unit was Rs. 62,36,784 and the amount of Rs. 60,33,230 paid by her towards the initial Unit had been adjusted towards the consideration of the new Unit in question. On 14.9.2010, the Apartment Buyer’s Agreement, hereinafter referred to as the Agreement (Annexure C - 4), was executed between the Original Buyer and the Opposite Party. Subsequently on 5.7.2013 an Agreement to Sell was executed between the Original Buyer and the Complainants, which had been duly endorsed by the Opposite Party in favour of the Complainants on the said date (see page 116 of the Complaint), and the Complainants had paid a sum of Rs. 70,00,000 to the Original Buyer as the sale consideration for the Unit in question. vide Nomination letter dated 12.7.2013, the transfer was also acknowledged by the Opposite Party. Both the Agreement to Sell dated 5.7.2013 and the Nomination letter dated 12.7.2013 are annexed to the Complaint as Annexure C - 5 (Colly.).

2. As per Clause 14(a) of the Agreement, the possession of the Unit was to be delivered / handed over within 30 months, including a grace period of 6 months, from the date of start of construction. The Opposite Party was to handover possession by 21.2.2013 as the Project had started on 21.8.2010. The said Clause of the Agreement reads as under:
“14(a) Subject to terms of this clause and the Allottee(s) having complied with all the terms and conditions of this Agreement and not being in default under any of the provisions of this Agreement and upon complying with all provisions, formalities, documentation etc. as prescribed by the Developer, the Developer proposes to hand over the possession of the Unit within 24 months from the start of construction. The Allottee(s) agrees and understands that the Developer shall be entitled to a grace period, for applying and obtaining the occupation certificate in respect of the Complex.”

3. It is averred that a sum of Rs. 60,33,230 stands paid by the Complainants to the OppositeParty, which is in excess of Rs. 1,29,923 as per the Revised Statement issued by the Opposite Party to the Complainants.

4. Though, as per the assurances given by the Opposite Party at the time of purchase of the Unit in question by the Complainants from the Original Buyer, the Unit was required to be handed over to the Complainants by October, 2013 but the Opposite Party failed to deliver possession of the Unit within the promised time period. The Complainants vide their various emails communicated their concerns to the Opposite Party, which kept on giving false assurances to the effect that the Occupation Certificate will be applied for in the first quarter of 2014. vide their emails dated 30.4.2015 and 18.4.2017 (which had been sent







































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