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

2023 Supreme(Online)(Del) 18923

NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION, NEW DELHI
R. K. Agrawal, J
Kulin Bhupatrai Shah v. Nutan Kailas Niwas Cooperative Housing Society Ltd.
Consumer Complaint Nos. 2597 of 2018 | Consumer Complaint No. 2598 of 2018



Developers are accountable for possession delays and quality issues under housing agreements, invoking the Maharashtra Ownership of Flats Act and Consumer Protection Act.

Headnote:(A) Maharashtra Ownership of Flats Act, 1963 - Complaints filed for delay in handing over possession of flats, compensation for mental harassment, and inferior quality of work - OPs were required to complete construction and hand over possession as per agreements but caused significant delays, which necessitated compensation plus interest. (Paras 12, 15)

(B) Consumer Protection Act, 1986 - Definition of consumer in relation to housing and construction agreements - Scope of complaints for delays, compensation, and amenities not provided. (Paras 11, 13)

Facts of the case:
The complainants filed consumer complaints due to delays by the developers in handing over flats, claiming various forms of compensation and issues related to construction quality and provisions under agreements.

Findings of Court:
Delay compensation is payable at a rate of simple interest from the committed possession date to the actual possession date, alongside adjustments for previous payments.

Issues: Key considerations included the definition of the complainant as a consumer and scope of claims for delays, rental compensation, and quality of amenities provided.

Ratio Decidendi: The court highlighted the accountability of developers for timely completion and standard of construction according to agreed terms, asserting that consumer protection laws cover such housing issues.

Result: Consumer complaints granted with specified compensation orders and adjustments.

Table of Content
1. filing of consumer complaints due to delays and quality issues. (Para 1 , 2 , 3 , 4)
2. opposite parties' defenses regarding compliance and consumer status. (Para 5 , 6 , 7 , 8)
3. court observations on delays and obligations under the agreements. (Para 9 , 10 , 11 , 12)
4. court's final orders on compensations and remedies. (Para 15)

1. Consumer Complaint Nos. 2597 of 2018 (CC) has been filed by the Complainant against the opposite parties (OPs) as detailed above, inter aila praying for directing the OPs to:
(i) hand over peaceful possession of Flat No. 902 with occupation certificate along with car parking and other amenities as per the Development Agreement and the Maharashtra Ownership of Flats Act (MOFA) Agreement.
(ii) pay Rs.23,37,800 towards compensation and damages to the complainant for delay in handing over the flat.
(iii) pay Rs.7,00,000 to the complainant towards rent from February 2018 till date of handing over the possession of the flat.
(iv) pay Rs.8,75,100 towards shortfall of 29.17 sq. ft. in the flat.
(v) pay Rs.20,00,000 towards mental harassment and agony due to the delay in completion of the work.
(vi) Rs.24,00,000 being damages towards inferior quality of internal work and non - provision of promised amenities in Flat No. 902 as per the Development Agreement and MOFA Agreement.
(vii) Rs.21,43,500 calculated at Rs.1,500 per day for 1,429 days, i.e. from 31/12/2014 till date towards each day delay in handing over possession of the said flat.
(viii) To discharge all remaining obligations on the part of the OP - 2 under the Development Agreement dated 11/11/2012 and MOFA Agreement dated 31/12/2014.
(ix) Rs.20,00,000 towards costs of litigation towards legal action against the OPs.









2. Consumer Complaint No. 2598 of 2018 has been filed by the same complainant against same OPs, seeking similar reliefs in respect of Flat No. 903, with some differences in the amount claimed under various heads and an additional prayer to pay Rs.1,05,71,250 as compensation of costs incurred by Complainant on account of OP - 2 not providing any amenities as per Development Agreement and MOFA Agreement and handing over the said flat to the Complainant in bare shell condition.

3. Since the facts and question of law involved and the reliefs prayed for in these complaints are similar / identical and both the consumer complaints have been filed by the same complainant against the same Opposite Parties except for minor variations in the dates, events, quantum of compensation / relief sought and flat numbers etc., which are stated in para 2 above and summarized in the Table in para 9 below, these complaints are being disposed off by this common order. However, for the sake of convenience, Consumer Complaint (CC) No 2597 of 2018 is treated as the lead case and facts enumerated herein under are taken from CC 2597/2018.

4. It is averred / stated in the complaint that:
(i) OP - 1 is the owner of all that piece and parcel of land at 353/4A, R.B. Mehta Marg, Ghatkpoar (East), Mumbai, admeasuring 1,703.60 sq.mtrs. and the Ground plus two Upper Storey building known as Nutan Kailas Niwas consisting of 2 wings and having 30 flats plus 1 Garage and 22 members. The complainant owned two flats in the said building flat Nos. 2 and 17. The building of the members of OP - 1 was constructed in the year 1965 and as such was old and needed repairs. The members of OP - 1 decided for redevelopment of the said building by appointing OP - 2 as developer for redevelopment of the said building. Development Agreement was executed between the OP - 1 and OP - 2 on 11/11/2012. OP - 1 granted development rights to OP - 2 for redevelopment of the said building. Under the Agreement, the OP - 2 was to construct a duplex flat for its senior directors or third party purchasers on the 12th and 13th floors in the said building as consideration from OP - 1 for redevelopment of the said building.
(ii) As per the Development Agreement and clauses, the OP - 2 was supposed to















































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