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2023 Supreme(Online)(Del) 18173

NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION, NEW DELHI
Ram Surat Ram Maurya, MEMBER, Dr. Inder Jit Singh (Member)
Megha Meshram v. Dream Projects (An Association of Persons)
Complaint



Advocates:
For the Appellants/Petitioners: Mr. Chandrachur Bhattacharyya
For the Respondents: Mr. Rabin Majumder

Consumers are entitled to compensation for delays in possession and deficient services in housing projects.

Headnote:The complainants filed a complaint against the opposite parties under the Consumer Protection Act for delayed possession of flats and lack of promised amenities. The court found the opposite parties guilty of deficient services, thus granting delayed compensation at 6% per annum. It posed questions regarding the completion of the projects and consumer rights in representation capacity. The court determined that due compensation for delays should be calculated appropriately and ordered that the conveyance deed be executed.

Table of Content
1. consumer rights under delayed possession. (Para 1 , 2 , 4 , 5)
2. determining completion and deficient services. (Para 3 , 6 , 10)
3. arguments related to ownership breaches. (Para 7 , 8 , 9 , 13)
4. court's final directive on compensation and property rights. (Para 12)

1. Heard Mr. Chandrachur Bhattacharyya, Advocate, for the complainants and Mr. Rabin Majumder, Advocate, for the opposite parties.

2. Sixteen sets of the home buyers of the project "Dream Palazzo" have filed above complaint, for directing the opposite parties to (i) deliver possession of the flats allotted to the flat buyers, complete in all respect as per specifications with promised amenities and facilities and execute conveyance deed in their favour; (ii) pay delayed compensation in the form of interest @24% per annum on the deposit of the flat buyers, for the period, possession was delayed; (iii) provide all the promised facilities and amenities at the time of handing over possession of their flats; (iv) pay additional compensation in the form of interest @18% per annum on the deposit of the flat buyers for the period, possession of the promised facilities and amenities are delayed; or in alternative, in case of non - provision of the promised amenities and facilities, pay Rs.10,00,000 to each of the flat buyers; (v) refund the amount realized in the head of car parking space with interest @18% per annum; (vi) refund the amount realized on account of service tax with interest @18% per annum; (vii) pay Rs.10,00,000 as compensation for mental agony and harassment; (viii) pay Rs.20,00,000, to each of the flat buyer as punitive damages; (ix) costs of litigation; and (iv) any other relief which is deemed fit and proper in the facts and circumstances of the case.

3. Leave under S.12(1)(c) of Consumer Protection Act, 1986 , for filing the complaint in representative capacity has been granted on 3.5.2018. Thereafter, notices were published in newspapers as required under S.13(6) of . Then through IA / 3807/2019 and IA / 16256/2019, three sets of flats buyers were impleaded. Later on some of the complainants were permitted to be withdrawn.

4. The complainants stated that opposite parties formed an association in the name of "Dream Projects" and launched a group housing project in the name of "Dream Palazzo" at Ward No. 2, of Rajarhat - Gopalpur Municipality, district North 24 Parganas, West Bengal in the year 2011 and made wide publicity of its amenities and facilities. Believing upon the representations of the opposite parties, each of the complainants booked one residential flat in above project. Later on, the agreements were executed during 2011-2012 between the parties. Clause - 8.2 of the agreement provides payment plan as "construction linked payment plan", in which an amount was payable before execution of the agreement, 20% including application money was payable on execution of the agreement, 10% was payable on completion of foundation, 10% each was payable on completion of 1st, 2nd, 3rd, 4th and 5th floor respectively. 10 % was payable on completion of brickwork, 5 % on completion of flooring and the balance 5 % was payable 7 days prior to possession. The opposite parties were required to raise demand of the instalments. Clause - 9.5 of the agreement provides 30 months period from the date of commencement of construction as "completion time" with six months as "extended period". The opposite parties commenced construction work in January, 2011 and collected 90% of total sale consideration from both Megha Meshram and Dipika Majumdar up to 4.8.2012 and 3.10.2012, respectively. As commencement of construction was in January, 2011, 30 months" time period expired in July, 2013 and further period of 6 months expired in January, 2014 but the opposite parties miserably failed to hand over the possession of the flats till January, 2014. The opposite parties are guilty of rendering deficient services to the complainants. The payment plan is a "constru













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