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2025 Supreme(Online)(NCDRC) 3483

NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION
JUSTICE A. P. SAHI, PRESIDENT, MR. BHARATKUMAR PANDYA, MEMBER
M/S PREMIUM ACRE INFRATECH PRIVATE LIMITED – Appellant
Versus
IRVINDER SINGH GILL – Respondent
NC / FA / 769 / 2015 | NC / IA / 13762 / 2024



Advocates:
For the Appellants/Petitioners: Mr. Pawan Kumar Ray
For the Respondents: Ms. Vertika H. Singh

Consumer agreements signed by seemingly authorized representatives are binding and protect consumers from internal business disputes.

Headnote:(A) Consumer Protection Act, 1986 - Deficiency in service - Delay in possession of property - The appellant challenge the State Commission's decision favoring the complainant regarding possession of Villa No.118. Complainant made substantial payments under a down payment plan, yet possession was not delivered in time, leading to a complaint alleging deficiency of service and unfair trade practice. Court found that despite claims of payment defaults by the complainant, no valid evidence supported these claims, thus ruling the appellants guilty of unfair trade practices and confirming reliefs awarded to the complainant including delay compensation and illegal cancellation of booking. (Paras 13-24)

(B) Consumer Agreements - Authority to bind company - The court held that agreements signed by sales representatives are binding, despite internal disputes of authority, emphasizing consumer protection against corporate failings. Consumers could not bear the cost of internal dealings and agreements held valid. (Paras 28-34)

Facts of the case:
The respondent booked a villa for Rs.41,80,000/- and made substantial payments, yet the appellant failed to deliver possession timely, leading to the complaint of deficiency of service.

Findings of Court:
Court confirmed that appellants failed to deliver the villa in promised condition and awarded compensation for the delay and unfair trade practices.

Issues: The main issues were the authority of the signatory on the agreement and the validity of cancellation of the booking based on alleged payment defaults.

Ratio Decidendi: The court reasoned that lack of evidence from the appellants regarding the claim of payment defaults titled in favor of the complainant, thereby affirming the lower court’s ruling.

Result: Appeal dismissed.

Table of Content
1. case background outlines payment and delivery issues. (Para 1 , 2 , 3 , 4 , 5 , 6)
2. arguments regarding possession and payment default. (Para 7 , 8 , 9 , 10 , 11)
3. court finds prior reliefs exhausted. (Para 12 , 13)
4. affirmation of state commission's findings and appeal dismissal. (Para 15 , 22 , 23 , 24 , 25 , 26 , 27)
5. court evaluates contractual obligations and delivery timelines. (Para 28)

ORDER

JUSTICE A. P. SAHI, PRESIDENT

1. The order of the State Consumer Disputes Redressal Commission, UT Chandigarh dated 22.06.2015 has been assailed in this appeal by the appellant/j builder contending that the impugned order proceeds on an incorrect appreciation of facts and the complaint has been allowed in favour of the complainant awarding the reliefs, in spite of the fact that the complainant/ respondent was a defaulter in the payments as against the Villa booked by him and that he was liable to pay the demands raised by the appellants.

2. The background of the case is that the respondent/ complainant booked Villa No. 118 in the project "The Courtyard" in Mega Housing Project of TDI City, Sector 110-111, Mohali, Punjab. The A 21.Q5.2Q11 with Mr. Sanjay Kumar Jain as the Authorized Signatory on behalf r' of the appellant. The basic price of the villa was fixed at Rs.41,80,000/- and there were additional external development charges that were also payable.

3. The allegation of the complainant is that the complainant had made a payment under a down payment plan of about Rs.30,00,000/- which constituted about <• 90% of the total basic sale price. The appellants raised a demand on 06.02.2013 for which a clarification was sought. They also raised a demand . subsequently on 05.06.2013 to the tune of Rs.9,61,967/- against which a sum of Rs.7,00,000/- was paid and the complainant was assured by the appellants that the possession would be delivered at the earliest.

4. The complainant having failed to receive the possession, instituted CC/69/2015 alleging deficiency and came up with a case that the entire payment had been made, and, in fact, the appellants through Mr. Sanjay Kumar Jain had accepted that they had received full and final payment except IFMS charges of Rs. 1,00,000/- in respect of the Copper Villa No. 118.

5. Notices were issued and the complaint was contested by the appellant urging that in effect the payments which have been received by Mr. Sanjay Kumar Jain and the letters issued by him indicating no dues, were all unauthorized, and in effect the complainant was liable to pay the balance amount of Rs. 17,00,361/-. According to the appellants this was intimated to the complainant vide letter dated 26.08.2014, which was in the shape of a legal notice calling upon the complainant to deposit the amount and since the’ complainant failed to make good the demands that were due, the booking was cancelled on 06.10.2014. The letter dated 06.10.2014 is also on record.

6. The complainant had however through counsel responded to the legal notice stating therein that the demand raised is absolutely illegal and therefore the complainant was not liable to pay any amount as alleged in the legal notice. It is thereafter that the complaint was filed before the State Commission.

7. Mr. Ray, learned counsel for the appellant has advanced his submissions primarily on two grounds first that the Villa was ready, and possession had been offered as such there was no reason to award delay compensation and secondly, the interest awarded or any other compensation awarded has overlooked the fact of the discount availed of by the complainant. In effect, Mr. Ray submits that the discount was wrongly extended to the complainant to which he was not entitled and the discounted amount also deserves to be realized from him.

8. He also submits that the reliefs granted even otherwise do not survive, in as much as, the possession of the Villa has been given in December, 2022 and the deed of the property has also been conveyed in January, 2023. The fa

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