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2023 Supreme(Online)(Del) 18255

NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION, NEW DELHI
Mr. Pravin Bahadur, Ms. Twinkle Rathi, JJ
Satya Prakash Jain – Appellant
Versus
IVR Prime Urban Developers Limited – Respondent
Complaint No. 180 of 2017



Advocates:
For the Appellants/Petitioners: Mr. Pravin Bahadur
For the Respondents: Ms. Twinkle Rathi

The court emphasized the necessity of arbitration under the agreed development contract and the binding nature of prior civil court arbitration orders.

Headnote:The development agreement dated 20.4.2007 stipulated that the complainant would receive possession of a share of the built-up area upon completion of the development project. The opposite party attributed delays to not obtaining necessary approvals from landowners, leading to the complaint being deemed not maintainable since the matter was referred to arbitration. The court concluded that the complainant's remedy lay in arbitration due to the ongoing civil suit and order from the Civil Court. Accordingly, the dispute was directed to be referred to the Cyber Enclave Owners Welfare Society as arbitrator.

Table of Content
1. parties' representations and agreement details. (Para 1 , 2)
2. existence and acknowledgment of delays in construction responsibilities. (Para 3 , 4)
3. maintenance of original jurisdictional agreement to resolve disputes. (Para 5)
4. requirement to pursue arbitration as determined by preceding civil suit ruling. (Para 6 , 7)
5. clarification on the conditions of contract fruitfulness based on participation. (Para 8 , 9)

1. Heard Mr. Pravin Bahadur, Advocate, for the complainant and Ms. Twinkle Rathi, Advocate, for the opposite party.

2. Satya Prakash Jain has filed above complaint, for directing the opposite party to (i) deliver possession of built - up area of his share as per Development Agreement dated 20.4.2007; (ii) pay Rs.5000000 as compensation for deficiency in service; (iii) pay Rs.100000 as the costs of litigation; and (iv) any other relief which is deemed fit and proper in the facts of the case.

3. The complainant stated that IVR Prime Urban Developers Limited (the opposite party) was a company, registered under the Companies Act, 1956 and engaged in the business of development and construction of group housing project. The complainant purchased Plot No. 72, Cyber Enclave, Madhapur Village, Srilingampally Mandal, Ranga Reddy District, through sale deed dated 14.10.2005 and was owner of it. The opposite party approached the complainant and represented that it had varied experience in the field of development and construction of the building and had a good will for raising high quality constructions and completing on time. Believing upon the representations of the opposite party, the complainant entered into a Development Agreement - Cum - General Power of Attorney dated 20.4.2007, for development of his above Plot No. 72. Under the development agreement, the share of the complainant was 21 sq. ft. in every 1 sq. yard build - up area and remaining area would go to the opposite party. The opposite party paid Rs.1952000 through cheque dated 20.4.2007, as an advance, refundable on completion of the project and handing over possession of the share of the complainant. As per clause - 3.1 of the agreement, the construction had to be completed within 30 months from 1.11.2006 with grace period of six months. Vacant possession of the land was handed over to the opposite party on the date of execution of development agreement. 30 months period expired in April, 2009. The complainant, through letter dated 12.5.2009, requested the opposite party to deliver possession within grace period, i.e. up to 31.10.2009 and in case, possession is not delivered till then, to pay rent @ Rs.30 per sq. ft. on the built - up area of share of the complainant. The opposite party did not respond, then the complainant gave a reminder dated 1.6.2009. The opposite party, vide letter dated 1.7.209, supplied a copy another letter dated 17.6.2009 addressed to Cyber Enclave Welfare Association, wherein he had attributed the cause of delay to the members of that association. The complainant gave a legal notice dated 27.7.2009, to the opposite party, calling upon it to pay rent from November, 2009. The opposite party sent reply notice dated 10.10.2009, stating that the complainant had negotiated through Cyber Enclave Welfare Association for common development of his plot amalgamating with the plot of the association; but some of the members of association had not executed / signed Joint Development Agreement, in spite signing MOU for development as such the project was delayed.

4. The opposite party has filed its written reply on 4.10.2017 and stated that it was a reputed construction company, excellence in planning and execution of affordable, top quality housing projects and an urban development arm of IVRCL Infrastructure & Project Limited. There were 125 plots of the individual farmers in Survey No. 77, Cyber Enclave, Madhapur Village, Srilingampally Mandal, Ranga Reddy District. The plot owners of Cyber Enclave approached the opposite party













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