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) 7354

NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION, NEW DELHI
R. K. Agrawal, PRESIDENT, Binoy Kumar, MEMBER
Deepika Chaudhary Chandra and Arun Kumar Chandra – Appellant
Versus
M/s. Emaar MGF Land Limited – Respondent
Consumer Complaint No. 84 of 2018



Advocates:
For the Appellants/Petitioners: Mr. Varun Garg
For the Respondents: Mr. Sunil Mund

Consumer agreements with one-sided clauses are unenforceable; delayed possession incurs compensation at 8% interest.

Headnote:(A) Consumer Protection Act, 1986 - Sections 21(a)(i), 22(1) - Dispute regarding non-delivery of possession of an apartment - Complaint filed for compensation regarding delayed possession - Terms in agreement deemed one-sided and thus unenforceable against consumers - Delay in possession leads to entitlement for compensation calculated at 8% interest. (Paras 1, 9, 17, 18)

(B) Jurisdiction - Consumer Forum’s jurisdiction not ousted by arbitration clause in the agreement as per precedent established.

(C) Pecuniary jurisdiction - Consumer Forum possesses jurisdiction where compensation amounts exceed Rs.1 Crore. (Paras 7)

Facts of the case:
Complainants booked a residential apartment under an agreement that promised possession within 36 months, failed to receive possession, leading to claiming delayed compensation and various other reliefs.

Findings of Court:
OP Developer is liable for the delayed possession and must compensate the Complainants as per provisions contained in the Consumer Protection Act, with a directive to pay interest on the amount deposited at 8% p.a. from due date. Refund of car parking charges is also mandated.

Issues: The main issues revolved around the enforceability of arbitration terms and the definition of the term 'Consumer' as per the Act.

Ratio Decidendi: Terms were found to impose undue hardship on consumers, prompting the court to rule against the Developer's rigid adherence to one-sided contractual terms.

Result: Complaint partly allowed.

Table of Content
1. claim regarding delayed possession and unilaterality of agreement terms. (Para 1 , 2 , 3)
2. discussion on jurisdictional matters and consumer definitions. (Para 4 , 5 , 6 , 7 , 8 , 9)
3. final ruling regarding compensation and directive for action. (Para 10 , 11 , 17 , 18 , 19)
4. determination of delay compensation eligibility and computation methodology. (Para 12 , 15)

1. The present Consumer Complaint has been filed under S.21(a)(i), S.22(1) of the Consumer Protection Act, 1986 (for short the Act) against Opposite Party M/s. Emaar MGF Land Limited (hereinafter referred to as OP Developer) by Deepika Chaudhary Chandra and her husband Arun Kumar Chandra, Complainants / Allottees of Residential Apartment in a Group Housing Project, namely, Palm Terrace Select (for short the Project), to be developed and constructed by the OP Developer in Village Badshahpur, Sector 66, Gurugram, Haryana, seeking compensation towards delayed delivery of the possession of the allotted Apartment / Unit besides other reliefs.

2. According to the Complainant, the brief facts giving rise to filing of the present Complaint are that allured by the advertisement and the assurances given by the representative of the OP Developer that the construction of the Apartment would be completed and possession would be given within stipulated time, the Complainants jointly booked an Apartment in the Group Housing Project, namely, Palm Terrace Select (for short the Project), to be developed and constructed by the OP Developer in Village Badshahpur, Sector 66, Gurugram, Haryana, on 18.7.2010 by paying a booking amount of Rs.10,00,000. The Complainants were allotted Unit No. PTS - 10-0502 by the OP Developer vide allotment letter dated 16.8.2010. It is averred that two copies of Apartment Buyer's Agreement (hereinafter referred to as Agreement) were sent by the Developer for signature vide letter dated 17.9.2010 and thereafter one signed set was sent back to them vide letter dated 15.10.2010. However, no date of execution of the Agreement was mentioned on the Agreement. It was also averred that the Agreement contained various unilateral terms and conditions which were wholly one - sided, unfair and without giving any bargaining power to them. As per Agreement the total cost of the Apartment was Rs.1,71,56,670. As per Clause 14 of the Agreement, the possession of the Apartment was to be delivered within a period of 36 months (plus grace period of 3 months) from the commencement of the construction. It was also averred that despite having received more than 50% of the sale consideration, i.e., of Rs.90,47,3674, from the date of booking, the OP Developer did not even started the construction. The construction could be started on 31.7.2012, therefore, as per terms of the Agreement the possession of the Apartment was to be delivered by 31.10.2015. The Complainants had deposited more than 95% of the total sale consideration, i.e., Rs.1,68,74,791 as per demands of the OP Developer on different dates upto the date of filing of the Complaint, i.e., May, 2018, despite that OP Developer failed to deliver the possession of the Apartment within stipulated period. It was also averred that the OP Developer has wrongly charged Rs.7 lakh towards two car parking as the basement car parking spaces forms part and parcel of the common area, therefore, there is no ownership right which gets transferred to the Allottee. Alleging deficiency in service on the part of the OP Developer, the Complainant has filed the present Consumer Complaint seeking following reliefs:
(a) Direct Opposite Party to handover possession of Apartment duly completely in all respect i.e. in habitable condition and in conformity of the specification to the Complainants after taking the complete Completion Certificate and duly registering Apartment in the name of the Complainants as expeditiously as possible;
(b) Direct the Opposite Party to pay interest at the rate of 24% per annum on the amounts





















































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