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) 18850

NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION, NEW DELHI
Ms. Anubha Aggarwal, ACJ, Mr. Rahul Kriplani, ACJ
Sanjiv Kumar Jain v. Lodha Crown Buildmart Private Limited
Consumer C. No. 2107, 2108, 2109 of 2016



Advocates:
For the Appellants/Petitioners: Ms. Anubha Aggarwal
For the Respondents: Mr. Rahul Kriplani

Delay in possession by the builder entitles homebuyers to a full refund of deposits, as per consumer protection laws.

Headnote:(A) Consumer Protection Act, 1986 - Sections 2(1)(d) and 2(1)(o) - Delay in possession - Complainants seek possession and refund from opposite party who delayed possession for 8 years, issues of poor construction quality and reduced carpet area raised post complaints filing - Court ruled that unreasonable delay in possession grants right to refund. The court allowed amendments regarding reimbursement claim stating health emergency. (Paras 1, 3, 15, 16)

(B) Amending Pleadings - Court allows amendments regarding refund claims based on facts that arose after the initial complaints were filed, in accordance with established law on amendment procedures as per previous rulings. (Paras 3, 4)

(C) Definitions - Clarifications on the meanings of 'consumer' and 'service' under the Act with case law cited for interpretations and consumer contexts. Court acknowledged the complainants’ status as consumers. (Paras 12, 14)

Facts of the case:
The complainants, having no received possession despite full payment, alleged poor construction and other breaches, which delayed possession beyond agreed timelines. (Paras 4, 15)

Findings of Court:
Court held that unreasonable delay entitles refund, thus directing payment with interest. (Paras 16)

Issues: Delay of possession, quality of construction, entitlement to refund based on consumer definitions. (Paras 15, 16)

Ratio Decidendi: Court found lack of reasonable delay from the opposite party and ruled the complainants entitled to refund under the agreement clause due to inordinate delays. (Paras 16)

Result: Opposite party directed to refund entire amount with interest within two months.

Table of Content
1. delay in possession justifies claims for refunds. (Para 2 , 3)
2. arguments concerning consumer status and the applicability of amendments. (Para 10 , 11)
3. court's ruling reflects on entitlements due to unreasonable delay. (Para 15 , 16)

1. Heard Ms. Anubha Aggarwal, Advocate, for the complainants and Mr. Rahul Kriplani, Advocate, for the opposite party.

2. Above complaints have been filed for directing Lodha Crown Buildmart Pvt. Ltd. (the opposite party) to (i) handover possession of the apartments, within stipulated period and in no case, later than 30.6.2017; (ii) pay interest @ 18% per annum, compounded quarterly on the amount deposited by the complainants from the date of deposit till offer of possession; (iii) refund excess amount deposited by the complainants with interest @18% per annum, compounded quarterly from the date of deposit till the date of refund; (iv) consider advance deposit of the complainants under "My Gain" scheme and pay interest on it; (v) withdraw demand letters wherein interest is being charged from the complainants; (vi) pay Rs.20,00,000 as punitive damages; (vii) pay Rs.20,00,000, as compensation for mental agony and harassment; (viii) pay costs of litigation; and (ix) any other relief which is deemed fit and proper in the facts and circumstance of the case. As the complaints are for similar reliefs against same opposite party as such these complaints are consolidated and decided by a common order.

3. The complainants filed IA / 8/2021 in CC / 2107/2016, IA / 9/2021 in CC / 2108/2016 and IA / 10/2021 in CC / 2109/2016, for amending prayer clause of the complaints and by praying for refund of entire amount deposited by the complainants with interest @24% per annum from the date of respective deposit till the date of refund on the grounds that (i) the opposite party has delayed delivery of possession for 8 years although entire sale consideration was deposited by them in the year 2012; (ii) the construction as raised by the opposite party is of poor quality; (iii) the carpet area has been substantially reduced from the promised area; and (iv) They are in dire need of money to meet out unexpected health emergency. The complainants stated that for paying sale consideration, they had taken loan and paid huge amount towards interest on it. Amita Jain (the complainant) has been diagnosed with stage three cancer, which required long term costly treatment. She was undergoing treatment.
The opposite party filed its replies in the above applications and contested them. The opposite party stated that the complaint had been filed for possession and other consequential reliefs. Allegations of poor quality of construction and reduction in the carpet area are incorrect and an afterthought. At the verge of final hearing, the complainants are changing the nature of the complaints, which is not permissible under the law, as held by Supreme Court in Revajeetu Builder and Developers v. Narayanaswamy , 2009 (VII) SLT 537 : 2009 (V) CLT 39 (SC) : 2009 (10) SCC 84 .
Supreme Court in L.I.C. v. Sanjeev Builders (P) Ltd., 2022 (VII) SLT 563 : 2022 SCC OnLine SC1128, after review of entire law on the amendment of pleadings and prayer, laid down the principles for dealing with the amendment applications; which inter alia held that where amendment sought is only in respect of relief in the plaint and is predicated on the facts which are already pleaded in the plaint, ordinarily the amendment is required to be allowed.
In these cases inordinate delay in offer of possession and medical emergency of the complainants are facts, arose after filing of the complaints. The facts of inferior quality of construction and substantial reduction in the carpet area came to the notice of the complainants, when they were permitted to visit the flats. It is well within jurisdiction of the Court to take its notice of subsequent facts and mould the relief, accordingly. It is well settled that inordinate delay in offer of possession, a





























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