SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2022 Supreme(Online)(Del) 7277

NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION, NEW DELHI
R.K. Agrawal, President, Dr. P.C. Jain, Member
Ansal Crown Heights Flat Buyers Association – Appellant
Versus
Ansal Crown Infrabuild India Pvt. Ltd. – Respondent
Consumer Complaint No. 86 of 2018



Advocates:
For the Appellants/Petitioners: Mr. Saurabh Jain
For the Respondents: Mr. Rohit Gupta

The Builder must fulfill contractual obligations and cannot enforce unfair terms; delayed possession warrants compensation and potential refunds to buyers.

Headnote:(A) Consumer Protection Act, 1986 - Sections 2(b)(iv), 21 - Deficiency in service and unfair trade practices by builder - Flat buyers association claims for possession of flat, delay compensation, and refund of amounts paid - Delay attributed to developer and contractor disputes deemed unjustifiable - Unfair contract terms deemed unenforceable - Court orders refund or possession with compensation at 9% p.a. based on construction delay. (Para 10)

(B) Contractual Obligations - Consumer Protection - Builders must ensure timelines and adhere to obligations under the agreement - Delay in possession leads to claims for compensation and damages for inconvenience and financial losses. (Para 8)

Facts of the case:
Consumer complaints filed by flat buyer association with claims for possession, compensation for delays, and refunds stemming from construction delays and unfair contract terms.

Findings of Court:
Court finds builder's failure to deliver on time to be unjustified; orders possession or refunds with compensation.

Issues: Delay in possession and its implications; unfair terms in builder-buyer agreements.

Ratio Decidendi: Builders are accountable for undue delays; consumers not bound to unfair contract terms; court emphasizes equitable treatment and consumers' rights.

Result: Both complaints are partly allowed; developer must deliver flats, pay compensation, or refund.

Table of Content
1. consumer complaints filed against builder for possession delay. (Para 1 , 3 , 4)
2. builder’s delay cited due to external factors but ruled unjustified. (Para 5 , 11)
3. court's ruling on compensation and entitlement to refunds. (Para 10 , 12)

1. The present Consumer Complaints have been filed under S.21(a) (i) read with S.2(b) (iv) of the Consumer Protection Act, 1986 (for short the Act) by the Ansal Crown Heights Flat Buyers Association, a Voluntary Consumer Association registered under Haryana Registration and Regulation of Societies Act, 2012, (hereinafter referred to as the Complainant Association) on behalf of its Members against the Opposite Party, Ansal Crown Infrabuild India Pvt. Ltd. (hereinafter to be referred to as the Developer) seeking a direction to them to hand over the possession of the Apartments booked by the Members of the Complainant Association along with delay compensation or in alternative to refund the deposited amount with interest and compensation.

2. Since the facts involved in both the Complaints are similar except for minor variations in the Unit Numbers and their Sale Consideration, these Complaints are being disposed of by this Common Order. However, for the sake of convenience, the facts have been taken from the Consumer Complaint No. 86 of 2018.

3. The facts as narrated in the Complaint are that the Opposite Party - Developer in the year 2007 after obtaining license from the Director, Town and Country Planning, Haryana for setting up a Group Housing Complex floated a Housing Scheme, christened as Ansal Crown Heights situated at Village Prahladpur, Sector 80, Faridabad, Haryana (hereinafter referred to as the Project). The Members of the Complainant Association applied for various Flats / Apartments in the, said Project and vide Allotment Letters they were allotted their respective flats for the sale consideration which included Basic Price, EDC, IDC, External Electrification Charges, Power Back Up Installation Charges, Preference Location Charges and Car Parking Charges. Subsequently, the identical Builder - Buyers Agreements (hereinafter referred to as Agreement) were also executed by the Developer with the Members of the Complainant Association for the respective Flats / Apartments during the period from 7th March, 2010 to 10th June, 2013. As per Clause 4 of the Agreement, the Developer had contemplated to complete the construction of the allotted Apartments / Flats within 36 months from the date of execution of the Agreement, meaning whereby, in terms of the Buyers Agreement, the possession ought to have been handed over to the Complainants by December 2013 to June, 2016. It is averred that the Developer has intentional executed the Agreements after three years from the date of booking of the Apartments to buy the additional time to complete the Project. It is alleged that all the Members of the Complainant Association have made the payment to the Opposite Party - Developer to the extent of 85% to 96% of the total Sales Consideration but still the Opposite Party - Developer has entirely failed to complete the construction work of the Project and to hand over the possession of the Flats / Apartments to the Members. Hence, alleging deficiency in service and Unfair Trade Practice on the part of the Opposite Party - Developer, the Complainant Association has filed the Complaint seeking following relief:
(i) Direct the OP to hand over the possession of the aforesaid apartment complete in all respects to complainant immediately as per the Builder - Buyers Agreement and execute all the necessary and required documents in respect of the said apartment in favor of the complainant along with a sum in the form of compensation at 24% per annum from the total amount paid from the committed date of possession till the actual possession of the apartment as compensation for the delay which amount to deficiency in service as well as compensate for the financial losses incurred viz. EMI































































Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top