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2022 Supreme(Online)(Del) 7272

NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION, NEW DELHI
S. M. Kantikar, MEMBER, Binoy Kumar, MEMBER
Mrs. Manju Sharma – Appellant
Versus
M/s Raheja Developers Limited – Respondent
Consumer Complaint No. 728 of 2020 | Consumer Complaints No. 729 to 734 of 2020



Consumers have the right to timely possession and compensation for undue delays as established by precedents under the Consumer Protection Act.

Headnote:(A) Consumer Protection Act, 1986 - Section 21 - Delayed possession of purchased unit in a real estate project - Complainants sought refund and compensation for delay - Supreme Court precedents establish consumer rights to timely possession and compensation for undue delay. (Paras 10, 14, 19, 20, 26)

(B) Contractual obligations - One-sided terms declared unfair - Contractual terms and conditions cannot bind consumers if deemed inequitable or unreasonably unfair. (Paras 17, 18)

(C) Jurisdiction of Consumer Forum upheld - Consumer Protection Act remedies exist alongside other laws and cannot be negated by arbitration clauses in agreements. (Paras 13, 15)

Facts of the case:
Complainants alleged delay in possession of constructed unit well beyond agreed timelines, having made substantial payments. They sought timely possession or a full refund due to delays exceeding eight years.

Findings of Court:
Delay by the Opposite Party in handing over possession is established, leaving consumers entitled to fair compensation.

Issues: Entitlement to compensation due to delay in delivery of possession and unfair one-sided terms in agreements.

Ratio Decidendi: It is affirmed that flat purchasers are subjected to valid compensation claims for delays that defy what is reasonable under the law, and contractual terms must not be inequitable.

Result: Consumer Complaints are partly allowed with directives to provide possession, compensation, or refund as per the stipulations detailed in the order.

Table of Content
1. delay in possession despite full payments. (Para 3 , 5 , 6)
2. rights of consumers against unfair practices. (Para 8 , 12)
3. consumer protections uphold validity against unjust contract. (Para 10 , 14)
4. consumer entitlement to fair compensation for delay. (Para 19 , 20)
5. final directions for possession and compensation. (Para 24 , 26 , 27)

1. The present batch of Consumer Complaints have been filed under S.21(1) (a) of the Consumer Protection Act, 1986 (for short “the Act”) by the Complainants, against M/s Raheja Developers Limited (hereinafter referred to as the ‘Opposite Party’) for delay in construction of the Project.

2. Since the facts and question of law involved in these Complaints are similar except for minor variations in the dates, events and flat numbers, these Complaints are being disposed of by this common Order. However, for the sake of convenience, Consumer Complaint No. 728 of 2020 is treated as the lead case and the facts enumerated hereinafter are taken from Consumer Complaint No. 728 of 2020.

3. Brief facts of the case as narrated in the Complaint are that initially Mrs. Manju Sharma booked an Apartment on an independent floor (hereinafter referred to as the Unit) in Project “Rahejas Shilas” situated in Sector 109, Gurgaon, Haryana of the Opposite Party. She paid a booking amount of Rs. 2,00,000 (Two Lakhs Only) to the Opposite Party on 8.3.2011. Thereafter, she was allotted Unit bearing No. IF17-03 on 17th floor, Tower - 3, Area - 2102 sq.ft. for a total consideration of Rs. 1,03,10,906 (One Crore Three Lakhs Ten Thousand Nine Hundred and Six Only). An Agreement to Sell (hereinafter referred to as the Agreement) was signed between Mrs. Manju Sharma (Initial Allottee) and Mrs. Charu Sharma (Hereinafter referred to as the Complainant) on 21.12.2012.

4. The Complainant stated that as per clause 4.2 of the Agreement, the possession of the Unit was to be delivered within 30 months from the date of execution of the Agreement in case of an Independent Floor. Hence, the possession was to be delivered by January, 2014. The relevant portion of clause 4.2 of the Agreement reads as under:
“That the seller endeavors to give possession of the Apartment to the Purchaser within 24 months from the date of the execution of this Agreement and after providing of necessary infrastructure in the sector by the Government, but subject to force majeure conditions or any Government / Regulatory authority’s action, inaction or omission and reasons beyond the control of the Seller The seller shall be entitled for compensation free grace period of 6 months, in case the construction is not completed within the time frame mentioned above.”

5. The Complainant stated that she diligently followed the payment plan of the Opposite Party and made payments as and when the demands were raised by the Opposite Party. The Complainant has paid Rs. 91,46,333 (Ninety One Lakhs Forty Six Thousand Three Hundred and Thirty Three Only) by August, 2012. She averred that the Opposite Party failed to give possession of the Unit even after the expiry of more than 6 years from the promised date of possession.

6. The complainant stated that she had paid more than 90% of the total Sale Consideration to the Opposite Party by 2014. She further averred that though timely payment timely payment has been made an essential pre - requisite in the Agreement, timely completion of the Project was not given similar importance. She further averred that the Agreement is filled with one - sided and arbitrary terms.

7. Thus, aggrieved by the delay in possession of their Unit, the Complainants have filed this Complaint with following prayer to:
(a) Direct the Opposite Party to handover the possession of the Unit to the Complainant, Complete in all respect and in conformity with the Agreement to Sell and for the consideration mentioned therein, with all additional facilities and as per quality standards promised and execute all necessary and requir




















































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