2023 Supreme(Online)(Del) 18920
NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION, NEW DELHI
Ram Surat Ram Maurya, MEMBER, *Dr. Inder Jit Singh (Member)
Sudhir Kaura v. Managing Director/Chief Executive Officer Kashish Developers Limited
Consumer Complaint (CC)
Failure to deliver property timely constitutes a breach of contract under consumer protection laws, necessitating remedies including possession or refund.
Headnote:This decision addresses a consumer complaint regarding the failure of the opposite party (OP) to deliver possession of an apartment as per the terms of the Apartment Buyers Agreement. The Court found that the OP failed to meet the contractual obligations, and the delays claimed were not justified. Ultimately, the Court ordered the OP to deliver the apartment within six months or provide a refund with interest. The OPs are also ordered to pay litigation costs. The objectives of consumer protection laws were upheld.
| Table of Content |
|---|
| 1. breach of contract due to failure to deliver possession. (Para 1 , 2 , 3) |
| 2. arguments surrounding liability and force majeure. (Para 4) |
| 3. court's findings on delay and consumer rights. (Para 7 , 8) |
| 4. final directions regarding possession and remedies. (Para 9) |
1. The present Consumer Complaint (CC) under S.21(a)(i) has been filed by the Complainants against the OPs for failure to handover the possession of the apartment No. B - 2/16A, Manor One, Sector 111, Gurugram Haryana, as per terms & conditions envisaged under Apartment buyers agreement (ABA) dated 30/04/2013. It is inter alia prayed in the complaint to direct the OPs to:
(i) Handover the possession of the Flat to Complainant in completed and finished state.
(ii) Pay a sum of Rs.43,61,904 being the interest @ 24% per annum on Rs.91,40,238 w.e.f. 30/04/2016 till date of institution of complaint and also to pay a further penalty @ 24% per annum compounded quarterly on the said amount from date of institution of this complaint till actual physical delivery of flat.
(iii) Alternatively if possession is not delivered, refund the total amount paid with interest compounded quarterly @ 24% from the date of payment till complete payment.
(iv) Direct all sums adjudged due on the respondent shall be realized from it with interest @ 24% p.a. from date of such determination till the realization.
2. It is averred / stated in the Complaint that:
(i) Complainant bought the said flat from OP, the possession of which was to be delivered by 30/10/2016 including the grace period. The OP after taking a huge sum of money from the Complainant has failed to deliver the possession of the same.
(ii) The OP has failed to deliver the possession and also not updated the Complainant regarding the construction status of it as on date, thus Complainant sent a legal notice dated 3/11/2017 to OP for knowing the status, OP ignored the legal notice and did not reply to it. The Complainant further issued reminder notice to OP on 03/12/2017, which was further ignored by OP and no reply has been given by them. The cause of action arose to the Complainant against the OP, on 30/04/2016, when respondent failed to hand over the possession of the relevant flat to him, then on every day of the six month period of grace ending on 30/10/2016 and remains alive till date of filing of complaint.
(iii) Complainant further states that if the time of payment was the essence of the contract for complainant, then time of delivery of the finished property was essence of contract for the OP.
(iv) It is further averred that OP has charged 24% p.a. interest on delayed payment by the Complainant in FBA. Thus, the Complainant should also get the same interest on delayed possession of the flat.
(v) It is alleged in the complaint that the act and omission of the OP falls under the definition of unfair trade practices and restrictive trade practices within the ambit of Consumer Protection Act 1986 for which buyers should be adequately compensated.
3. The OPs in their written statement / reply while denying each and every averments, allegations made by the complainant, have stated that:
(i) OP after getting License from DTCP, bearing No. 110 of 2011, for land admeasuring 14.843 acres in Gurgaon, Haryana and other permissions started the construction work for the said project.
(ii) The Complainant in order to harass and ruin reputation of Respondent No. 1, have mala fidely made him the party in the present case, although no allegations have been raised against him in the complaint and hence it is a mis - joinder.
(iii) The delay in granting possession was due to the force majeure circumstances and were beyond the control of the OP such as demonetization, default of payment by the buyers etc.
(iv) OP has availed credit facility from Dewan Housing Finance Limited for constructing the said project, due to the gross default of payment on part of buyers and is trying at its level best for completing construction.
(v) It is further averred
