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2023 Supreme(Online)(Del) 18253

NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION, NEW DELHI
Mr. S. K. Pande, J
Smt. Roshni Khanna and Rajesh Khanna – Appellant
Versus
M/s. Shipra Estate Limited & Jai Kishan Estate Developers Pvt. Ltd. – Respondent
CC / 844/2016



Advocates:
For the Appellants/Petitioners: Mr. Kishan Rawat
For the Respondents: Mr. Chaitanya, Mr. Shantanu Krishna

Builders are liable for delay compensation until possession is offered, despite claims of force majeure.

Headnote:The dispute revolves around the delay in possession of a flat promised to the complainants under the allotment letter governed by specific clauses regarding completion and compensation. The court reiterated the statutory obligations under the U.P. Urban Planning and Development Act, 1973, affirming the complainants' entitlement to delay compensation until possession is offered, highlighting the builder's liabilities and dismissing claims of force majeure on the grounds of delayed payments and construction completion timelines (Paragraph 7-8). Key issues addressed included the obligations of builders to compensate delays, with established precedents emphasizing consumers' rights to timely possession (Paragraph 9). The final verdict mandates the builder to pay the outstanding compensation for delay and ensure possession within six weeks of the judgment date (ORDER).

Table of Content
1. undue delay in possession and compensatory obligations of builders. (Para 2 , 3 , 4)
2. responses to complaints and evidentiary submissions. (Para 6)
3. judicial reasoning regarding builders' claims of force majeure. (Para 7 , 8)
4. affirmation of homebuyers' rights to accepted possession post completion. (Para 9)

1. Heard Mr. Kishan Rawat, Advocate, for the complainants, Mr. Chaitanya, Advocate, for opposite party - 1 and Mr. Shantanu Krishna, Advocate, for opposite party - 2.713/23, 3.23 p.m.

2. Smt. Roshni Khanna and Rajesh Khanna have filed CC / 844/2016, for directing the opposite parties to (i) handover possession of the flat allotted to them, complete in all respect within reasonable period and execute Flat Buyer's Agreement and Maintenance Agreement, in their favour; (ii) pay delay compensation in the form of interest @21% per annum on their deposit from January, 2009 till actual handing over possession; (iii) restrain the opposite parties from charging interest on the balance amount for delayed or deferred period; (iv) restrain the opposite parties from realizing any amount for power backup, club membership, sinking fund and other charges, mentioned in the statement of account as on 13.7.2015 & 29.12.2015 till handing over possession, completion of the entire project and all common facilities; (v) pay Rs.15 lakh, as compensation for mental agony and harassment; (iii) pay the costs of litigation; and (iv) any other relief which is deemed fit and proper in the facts and circumstances of the case.

3. The complainants stated that M/s. Shipra Estate Limited & Jai Kishan Estate Developers Pvt. Ltd. (opposite party - 1) were companies, registered under the Companies Act, 1956 and engaged in the business of development and construction of group housing project and selling its unit to the prospective buyers. Ghaziabad Development Authority is a statutory authority, constituted under U.P. Urban Planning and Development Act , 1973. The opposite parties launched a group housing project, in the name of "Shipra Krishna" at Ahinsa Khand, Indirapuram, Ghaziabad in the year 2006 and made wide publicity of its facilities and amenities. Believing upon the representations of the opposite parties, the complainants booked a flat on 17.7.2006 and deposited booking amount of Rs.1,50,000 and thereafter allotment money of Rs.10,75,500 on 15.11.2006. Opposite party - 1 allotted Flat No. Amaltas - 1101, for a consideration of Rs.61,27,500, vide Allotment Letter dated 2.9.2006. Balance amount of Rs.49,02,000 was paid on 30.11.2006 under "down payment plan". Clause - 9 of the allotment letter provides that construction of the building is likely to be completed within 22 months from the date of commencement of construction. The complainants deposited full consideration on 30.11.2006. However, the construction work ran with slow pace. President, Srishti Welfare Society held a meeting with the Director of opposite party - 1 and conveyed vide letter dated 28.2.2008 to all the allottees, including the complainants that construction was delayed and the assurance was given that it would be completed by February, 2009. Opposite party - 1 however, further delayed the construction hence vide letter dated 28.2.2009, addressed to Srishti Welfare Society, offered delay compensation from January, 2009 till July, 2009 @ Rs.5 per sq.ft. permonth. Vide letters dated 26.8.2009 and 23.10.2009, issued to joint allottees of Flat No. Palash - 501 (Srishti), opposite party - 1 offered discount @7% per annum from August, 2009. Opposite party - 1, did not attend any correspondence of the buyers for a long time. Opposite party - 1, vide letter dated 10.01.2012, sent a cheque of Rs.10,7231 as delay compensation. Opposite party - 1,vide letter dated 18.6.2013, informed the buyers in building Nos. 1 and 2 that the construction of these two buildings was completed, "partial completion certificate" was awaited and delivery of possession was expected till September









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