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2023 Supreme(Online)(Del) 18223

NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION, NEW DELHI
D.K. Jain, M. Shreesha, JJ
Dev Arora – Appellant
Versus
M/s. Sweta Estates Pvt. Ltd. – Respondent
Review Application No. 339 of 2018 | First Appeal No. 1018 of 2016 | Consumer Complaint No. 1513 of 2016



Subsequent purchasers retain consumer rights under the Consumer Protection Act and can seek remedies for deficiencies in service from property developers.

Headnote:(A) Consumer Protection Act, 1986 - Section 17(1)(a) - Review Application - Dismissal of complaint for lack of pecuniary jurisdiction - The applicant claimed rightful entitlement to possession and compensation due to delays in construction and additional charges levied by the developer - The court determined that the appellant, as a subsequent purchaser, retains consumer rights and can seek remedies under the Act. (Paras 6, 12, 13, 26, 31)

(B) Forum Shopping - The complainant filed multiple complaints on the same cause of action which raised issues of maintainability and jurisdiction - The courts assessed the validity of the complaint according to principles outlined in precedent cases. (Paras 5, 18, 20)

(C) Deficiency in Service - The developer failed to hand over possession timely and attempted to impose additional charges not justified by contract terms - The applicant suffered financial detriment due to delayed possession and was entitled to compensation. (Paras 6, 31)

Facts of the case:
The applicant purchased a flat from previous owners and alleged deficiencies in the developer's obligations, including delays in possession and unjustified billing of additional charges. (Para 3)

Findings of Court:
The Review Application was allowed, and the previous order was recalled based on the merits of the consumer complaint, with the court directing prompt completion of construction and compensation for delays. (Paras 12, 31)

Issues: The main issues included the assessment of jurisdiction under the Consumer Protection Act and the rights of subsequent purchasers to claim on behalf of original purchasers. (Para 6)

Ratio Decidendi: The court held that subsequent purchasers do not lose their consumer status and entitled to remedy under the Consumer Protection Act, supporting their claims based on construction delays and inadequacies in service from the developer. (Paras 12, 26)

Result: The complaint was partially allowed with the developer ordered to complete pending work and pay compensation. (Para 31)

Table of Content
1. introduces review application context. (Para 1 , 2)
2. describes factual background of the complaint. (Para 3 , 4)
3. state commission's dismissal of initial complaint. (Para 5)
4. grounds for the review application. (Para 6 , 9)
5. court's observations on the review process. (Para 10 , 12 , 13)
6. application of legal precedent regarding consumer rights. (Para 14 , 21 , 22)
7. consumer protection principles applied to underlying facts. (Para 19 , 28)
8. final orders and implications regarding possession and compensation. (Para 30 , 31)

1. The present Review Application No. 339 of 2018 has been filed by the Applicant / Appellant, Dev Arora, (the Original Complainant) in First Appeal No. 1018 of 2016 praying for recalling of the Order dated 30.9.2016 passed by this Commission wherein the First Appeal No. 1018 of 2016 was dismissed as withdrawn.

2. I.A. No. 9498 of 2021 has been filed by the Respondent / Opposite Party seeking liberty to place additional documents on record and for directions to dismiss the Consumer Case No. 1513 of 2016.

3. The brief facts of the case relevant for disposal of the Review Application, Interim Application as well as Consumer Complaint No. 1513 of 2016 filed by Mr. Dev Arora, the original Complainant are that the Flat No. 9 - B, Belgravia, Tower - F, Central Park - II, Gurgaon having area of 2350 sq. feet was provisionally allotted to one, Raj Kumar Budhiraja and Anita Budhiraja by the Opposite Party, M/s. Sweta Estates Pvt. Ltd. (hereinafter to be refereed to as "the Developer"). The Apartment Buyer's Agreement was executed between the parties on 29.7.2013. The total Sale Consideration of the Flat in question was Rs.2,82,00,000 plus service tax @ Rs.12,000 per sq. feet and the possession was to be delivered within six months from the date of execution Apartment Buyer Agreement. Vide Agreement dated 19.7.2013, Complainant purchased the said plot from Raj Kumar Budhiraja and Anita Budhiraja and consequently, copy of Apartment Buyer Agreement was handed over to him with endorsement dated 31.7.2013 in his favour. He acted upon the agreement executed in between Opposite Party / Developer and Raj Kumar Budhiraja and Anita Budhiraja as per which the possession was to be delivered by 28.1.2014. Authorised representatives of Developer / Opposite Party promised timely delivery of possession when the aforesaid Transfer Deed was executed in favour of the Complainant. Accordingly, a payment of Rs.1,60,95,145 up to 24.12.2013 including interest was paid by the Complainant to the Opposite Party - Developer. Vide letter dated 11.6.2015 the Developer demanded VAT amounting to Rs.3,32,000 payable by 10.7.2015. The said payment was raised allegedly on the basis of the orders of learned Punjab and Haryana High Court. It is the case of the Complainant that again vide Letter dated 12.8.2015 possession was offered and he was asked to deposit another Rs.1,79,88,951 by 11.9.2015. He was told that the possession would be delivered within 30 days after completion of all the formalities. According to the Complainant, the demand of Rs.14,39,350 by the Developer was also not justified. He further refused to make payment of balance 50% as he did not see the Developer doing any work in the flat in dispute or the tower in which it was situated. Meanwhile, the Complainant took another Flat on rent vide agreement dated 1.8.2013. He informed the Developer that unless interest on the amount, already paid by him is refunded and was compensated qua the rent, he would not make further payments as the possession was already delayed by two years. Complainant submitted that the Developer sent letters dated 9.11.2015, 4.12.2015, 5.1.2016 about balance payment which were replied informing that due to the Developer act negligence, he had already suffered a loss to the tune of Rs.82,20,524.

4. Alleging deficiency in service on the part of the Developer the Complainant filed Consumer Complaint No. 121 of 2016 before the State Dispute Re


























































































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