Developers are liable to pay delay compensation when possession of flats is not delivered within the agreed timeframe, reinforcing consumer rights against unfair contractual terms.

1. The present batch of Consumer Complaints has been filed by the Complainants, against the Opposite Party, Sunstone Developers Joint Venture seeking compensation for delayed delivery of the Flats booked by them in the complex to be constructed by the Opposite Party Developer in the name and style of “Hubtown Sunstone”, within stipulated period.

2. Since the facts and question of law involved in these Complaints are similar except for minor variations in the dates and events and flat numbers, these Complaints are being disposed of by this common Order. However, for the sake of convenience, Consumer Complaint No. 12 of 2017 is treated as the lead case and the facts enumerated hereinafter are taken from Consumer Complaint No. 12 of 2017.

3. Brief facts as narrated in the Consumer Complaint are that Akruti Nirman Limited, i.e., erstwhile company of Hubtown Limited and Swapanrajan Infrastructure Pvt. Limited formed a Joint Venture, i.e., Sunstone Developers Joint Venture (hereinafter referred to as Opposite Party Developer) vide Joint Venture Agreement dated 23.12.2011 with object to develop and construct the sale component by constructing the saleable components by utilising the FSI generated till 23.12.2011 on Property bearing Survey No. 341 (pt.), CTS No. 629/1251, Village Bandra, Bandra East, Mumbai, in the name and style of ‘Hubtown Stone’ (hereinafter referred to as the Project) consisting of 3 Basements + Ground + 19 Upper Floors.

4. Allured by the various representations given by the representatives of the Opposite Party - Developer that the Project has received Commencement Certificate and all other approvals and sanctions have been received, the Complainant approached the Opposite Party Developer for allotment of a Flat. Accordingly, Flat No. 601, 6th Floor admeasuring 690 sq. ft. carpet area was allotted for the aggregate consideration of 1,96,00,800 payable as per progress of the Project. Agreement for Sale (hereinafter referred to as the Agreement) was executed between the Parties on 31st March, 2012. As per Clause 2.5 of the Agreement, the Possession of the Flat was to be delivered by March 2014. It is stated that till the agreed date of possession, i.e., March, 2014, the Complainant has made about payment of 1,37,76,945 out of total sale consideration of 1,96,80,000 despite that the Opposite Party Developer failed to deliver the possession of the Flat till the agreed date of possession. It was also stated that till the date of filing of the Complaint, as per demand of the Opposite Party - Developer from time to time, the Complainant has made a total payment of 1,57,44,945, i.e., 80% of the total sale consideration to the Opposite Party - Developer, despite that they failed to deliver the possession of the Flat within stipulated period. Alleging deficiency in service on the part of the Opposite Party Developer, the present Complaint was filed with the following prayer:
“(a) That this Hon’ble commission be pleased to declare that the Opposite Party is guilty of deficiency in service and be further please to direct to Opposite party to rectify the defects in its service as builder and developer with further directions to the Opposite Party to handover possession of flat being flat No.601, 6th admeasuring 690 sq.ft carpet area together with car parking No. 44 A/B in building known as Hubtown Substone situated at land bearing survey No. 341 (pt), CTS No. 629/1251 Village Bandra, Bandra (East), Taluka Andheri as per the terms and conditions of agreement dated 31th March, 201