2022 Supreme(Online)(Del) 7420
NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION, NEW DELHI
Dinesh Singh (Presiding Member)
builder co. – Appellant
Versus
complainant – Respondent
Complaint No. 818 of 2017
For the Appellants/Petitioners: None
For the Respondents: Ravi Agrawal
Time and cost overruns in construction contracts are the builder's responsibility, not the consumer's.
Headnote:The appeal was filed challenging the State Commission's order concerning a builder-buyer dispute under the Consumer Protection Act. The appellant builder failed to appear in several hearings. The court emphasized the builder's responsibility for timely possession and deemed the delay unreasonable, allowing for recovery of the deposited amount along with interest. The core issue was whether the delay could be condoned, leading to the decision that the appeal lacked merit and was dismissed, affirming the State Commission's ruling.
| Table of Content |
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| 1. appeal filed under the repealed act, delay condoned. (Para 1 , 5 , 6) |
| 2. builder's responsibility for project's timely delivery. (Para 3 , 7) |
| 3. court's discretion on delay and compensation. (Para 4 , 8 , 9) |
| 4. appeal dismissed, state commission's ruling confirmed. (Para 10) |
1. This appeal has been filed under S.19 of the Act 1986 in challenge to the Order dated 19.12.2019 of the State Commission incomplaint No. 818 of 2017 which had been filed under S.17(1)(a)(i) of the Act 1986. The appeal was filed on 25.1.2021 when the Act 1986 (the old Act) already stood repealed and the Act 2019 (the new Act) was in force. To be fair to the appellants the mistake in the Section and the Act is being overlooked and the appeal is being entertained under S.51(1) of the Act 2019.
2. Learned Counsel for the appellants (the 'builder co.') is not present. It is seen that on the last preceding two occasions, i.e. on 14.6.2022 and on 19.5.2022 also no one had appeared for the builder co. Mr. Ravi Agrawal, learned Counsel is present for the respondent No. 1 (the 'complainant'). (Respondent No. 2 is a proforma party.)
3. Learned Counsel for the complainant submits that the State Commission vide its impugned Order has ordered for refund of the amount deposited by the complainant with the builder co. along with reasonable interest. The complainant has a favourable Order from the State Commission but the builder Co. is continuously not appearing before this Commission and is unjustifiably and intentionally delaying its appeal in order to make the State Commission's award more or less a throwaway. The submission is that any more delay in deciding the appeal would cause further prejudice to the complainant.
4. The case is listed for 'final hearing'. The ideal normative period to dispose of an appeal is 90 days of its admission (S.52 of the Act 2019). This is the third occasion on which no one has appeared for the builder co.
It is therefore deemed just and appropriate to decide the case on the basis of record.
5. Perused the record, including inter alia the State Commission's impugned Order dated 19.12.2019, the application for condonation of delay and the memorandum of appeal.
6. The appeal has been filed with self - admitted delay of 306 days.
Learned Counsel for the complainant submits that even though the delay is abnormally huge but still in order to put a period to the lis he has no objection to delay being condoned and the matter being decided on its substance on merits.
Having regard to the above submissions, as also considering the reasons mentioned in the application for condonation of delay, as well as in the interest of justice, and to decide the case on merits rather than to summarily dismiss it on the threshold on limitation, the delay in filing the appeal is condoned.
7. The matter relates to a builder - buyer dispute. In brief, the complainant paid a total amount of Rs. 24,99,329 to the builder co. for a residential unit. The assured date for delivery of possession of the subject unit was 21 months from the date of start of construction. Delivery of possession was not made within the assured period, or even within a reasonable period thence (reasonable period here would connote a period which may appear reasonable per se and which a reasonable man of ordinary prudence would not normally agitate or object to). The complainant went before the State Commission after more than 4 years of the expiry of the assured period of 21 months. The State Commission ordered the builder co. to refund the deposited amount with compensation in the form of simple interest at the rate of 9% per annum on the deposited amount from the respective date(s) of deposit till actual realisation within three months, failing which the rate of interest shall stand enhanced to 12% per annum for the period of default beyond the stipulated period of three months. It also awarded lumpsum Rs. 1,00,000 as compensation for the physical and mental agony and Rs. 21,000 as t