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2025 Supreme(Online)(NCDRC) 2766

NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION
Mr. Inder Jit Singh, Dr. Sadhna Shanker, JJ
Mr. Parag Gupta – Appellant
Versus
Tata Housing Development Co. Ltd – Respondent
CONSUMER COMPLAINT NO. 1844 OF 2017 | I.A. No. 20593 of 2017 | I.A. No. 9591 of 2021 | I.A. No. 9592 of 2021



Advocates:
For the Appellants/Petitioners: Mr. Lakshay Raheja
For the Respondents: Mr. Saifur Rahman Faridi

Opposite parties failed to provide necessary documentation and communication regarding flat allotment, constituting deficiency in service and entitling the complainant to a refund and compensation.

Headnote:(A) Consumer Protection Act, 1986 - Section 21(a)(i) - Deficiency in service - Complainant paid Rs. 10 lakh for a residential flat in 'Gurgaon Gateway' but received no acknowledgment or allotment despite assurances - Opposite parties failed to deliver possession or communicate cancellation - Complainant entitled to refund and compensation. (Paras 2, 18, 23)

(B) Consumer Rights - Definition of 'consumer' and obligations of service providers - Opposite parties must prove communication of documents; failure to do so constitutes deficiency in service. (Paras 7, 20)

Facts of the case:
Complainant made a pre-booking payment of Rs. 10 lakh for a flat, but opposite parties did not provide necessary documents or allotment, leading to mental distress and financial loss.

Findings of Court:
Complainant is entitled to refund of Rs. 10 lakh with interest and costs due to the opposite parties' failure to deliver the flat and lack of proper communication regarding cancellation.

Issues: Whether there was deficiency in service by the opposite parties and if the complainant qualifies as a consumer under the Act.

Ratio Decidendi: The court ruled that the opposite parties’ failure to provide essential documentation and timely communication constituted a breach of their obligations, affirming the complainant's status as a consumer and entitlement to relief.

Result: Complaint allowed in part.

Table of Content
1. consumer complaint filed for deficiency in service. (Para 1 , 2 , 3)
2. arguments on unfair trade practices and consumer rights. (Para 5 , 6 , 7)
3. opposite parties' defense regarding the complainant's status. (Para 9 , 11 , 13 , 14)
4. court's analysis on consumer status and evidence. (Para 16 , 17)
5. court's observations on deficiency in service and communication. (Para 18 , 19 , 20 , 22)
6. entitlement to refund and compensation established. (Para 23)
7. final decision on the consumer complaint. (Para 24)

ORDER

DR. SADHNA SHANKER, MEMBER

1. The present consumer complaint has been filed by Mr. Parag Gupta (herein referred to as 'complainant') under section 21(a)(i) of the Consumer Protection Act, 1986 against the opposite parties no. 1 and no. 2, namely, Tata Housing Development Co. Ltd. and Lemon Tree Land Development Pvt. Ltd., respectively, alleging deficiency in service on the part of the opposite parties.

2. The brief facts of the case are that, the complainant made a pre-booking initial payment of Rs. 10 lakh to the opposite parties for allotment of a 3 BHK residential flat in their proposed township project titled "GURGAON GATEWAY," located in Gurugram, Haryana. The approximate total consideration for the said flat was ?2,00,00,000/-. At the time of payment, the representatives or agents of the opposite parties handed over a blank or incomplete application form to the complainant, assuring that a duly filled and executed version of the form, along with the relevant documentation including the Payment Receipt, Application Form, and Allotment Letter, would be furnished within one month of encashment of the above-stated cheque. It is alleged that the opposite parties assured the complainant that the allotment of 3 BHK flat would be finalized within twelve months from the date of payment i.e. by 18.02.2014. It is further alleged that despite several follow-ups and personal visits made by the complainant, the opposite parties failed to provide any receipt or relevant documents acknowledging the initial payment. The complainant continued to pursue the matter by repeatedly contacting the opposite parties through its helpline number and meeting its representatives in -person. On every occasion, the opposite . parties representatives reiterated their assurances that the required documents and the allotment would be made shortly. However, despite repeated reminders, personal visits and persistent follow-ups, the opposite parties failed to issue the I promised documents or make the allotment of the flat, as initially agreed and deferred the matter on one pretext or another, thereby subjecting the complainant to undue mental agony, harassment, and emotional distress. It is stated that the conduct of the opposite parties and its representatives is not only unethical and unprofessional but also illegal, unlawful, and in clear violation of fair trade practices. The acts and omissions of the opposite parties have resulted in wrongful loss to the complainant and wrongful gain to the opposite parties.

3. Alleging deficiency in service and unfair trade practice on the part of the opposite parties, the complainant filed the instant complaint before this Commission, seeking following relief:

(a} Direct the Opposite Parties to make the payment of the amount paid Rs. 10,00,000/- (hjpees Ten Lacs Only) along with interest @24% per annum from 18.02.2013 till the date payment is made;

(b^Direcf the Opposite Parties to pay Rs. 15,00,000/- (Rupees Fifteen Lacs only) towards compensation, deficiency in services, causing, mental agony, harassment, hardship, financial losses and inconvenience;

(c) Direct the Opposite Parties to pay Rs. 1,00,000/- (Rupees One Lac Only) as cost of litigation,or

(d)Pass any other or further order(s). as this Hon'ble Forum may deem fit and proper in the facts and circumstances of the case and in the interest of justice in favour of the complainant and against the opposite parties.

4. The opposite parties have file

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