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2025 Supreme(Online)(NCDRC) 3656

NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION
AVM J. RAJENDRA, AVSM VSM (Retd.), MEMBER, MR. SUBHASH CHANDRA, PRESIDING MEMBER
ALPHA G184 OWNERS ASSOCIATION – Appellant
Versus
M/S Magnum International Trading Company Pvt. Ltd. – Respondent
Consumer Complaint No. 3751 of 2017 | Consumer Complaint No. 3752 of 2017 | Consumer Complaint No. 3753 of 2017 | Consumer Complaint No. 3754 of 2017



Advocates:
For the Complainants: Mr. Rahul Rathore, Ms. Priyanjali Singh
For the Opposite Parties: Mr. Sukumar Pattjoshi, Mr. Sougat Sinha, Ms. R. Gayathri Manasa, Ms. Nupur Kumar, Mr. Ram Krishna Rao

Consumers entitled to rightful possession and compensation for delays. Unilateral contract terms deemed unfair and legally unenforceable, obligating the builder to meet contractual obligations.

Headnote:(A) Consumer Protection Act, 1986 - Section 12(1)(b) - Delay in possession of apartments - Complainants sought legal possession, revocation of illegal charges, and compensation - Opposite Party failed to deliver possession per contractual agreement, raising illegal demands for increased area and escalation - Compensation payment is mandated at specified interest rates for delays in possession -Opposite Party's actions constituted deficiency in service. (Paras 3, 12, 15)

(B) Contract Law - Unilateral amendments to agreements and obligations - Agreements with one-sided terms found to be unfair, and not legally binding on consumers - Opposite Party to fulfill contractual obligations, including delivering legal possession in accordance with the timeline and issuing conveyances as stipulated. (Paras 12, 14)

Facts of the case:
Complainants are allottees in the Gurgaon One-84 project who faced delays and additional demands from the Opposite Parties for possession. Over the course of the litigation, complaints were filed due to undisclosed conditions and increased costs by the Opposite Party which unfairly burdened consumers. (Paras 1, 3)

Findings of Court:
The Opposite Parties are instructed to compensate for delay in possession at the specified interest, revoke illegal charges, and complete all necessary processes to finalize possession for allottees. (Paras 15)

Issues: The issues tackled included entitlement to legal possession, the validity of alleged additional charges, and the binding nature of the contract terms concerning delays and escalations. (Para 6)

Ratio Decidendi: The court upheld the application of interest for delays and declared the unilaterally imposed charges as invalid, emphasizing the responsibility of the Opposite Party to deliver timely and rightful possession. (Paras 12, 15)

Result: Complaints allowed.

Table of Content
1. various consumer complaints filed under consumer protection law due to unlawful demands and delays. (Para 1 , 3 , 5)
2. arguments presented by complainants and oppositions regarding consumer classifications including unfair trade practices. (Para 6 , 8)
3. determination of obligations and compensation due to delayed possession and escalation of costs by the builder. (Para 11 , 12 , 14)
4. conclusion on consumer complaints with several directives imposed on the opposite party. (Para 15 , 16 , 17)

JUDGMENT

AVM J. RAJENDRA, AVSM VSM (Retd.), MEMBER

1. The present Consumer Complaints No.3751 of 2017, 3752 of 2017; 3753 of 2017 & 3754 of 2017 have been filed under Section 12 (1)(b) of the Consumer Protection Act , 1986 (“the Act”) against the Opposite Parties seeking to direct the OPs:-

CC No. 3751 of 2017

i. Deliver to Consumers legal possession of their respective flats with registered conveyance without raising illegal demands;

ii. Direct OP to revoke illegal demands raised on the pretext of alleged increased in Saleable Area;

iii. Direct OP to revoke illegal demands raised on the pretext of Escalation;

iv. Direct OP to refund charges collected on account of parking along with interest @ 15% from the date of payment till the date of refund;

v. Pay to Consumers compensation for the delay in delivery of possession of their apartments quantified as interest @15% per annum on the amounts paid to OP, from the date of each payment till the date of delivery of legal possession;

vi. Direct OP to compensate the Consumers for increase in tax liabilities on account of delay in completion including the levy of GST;

vii. Direct OP to construct the approach roads to the project and install the electricity, water and sewerage connection to make the apartments habitable and till then not to charge any maintenance charges from Consumers;

viii. Direct OP to pay a sum of Rs. 10,00,000 for depleting the value and utility of the apartments by unilateral design changes;

ix. Pay a sum of Rs. 5,00,000/- to each Consumer as compensation for mental suffering and harassment;

x. Pay a sum of Rs.5,00,000/- (rupees five lakhs only) to each Consumer as compensation unfair trade practices.

xi. Pay a sum of Rs.50,000/- toeach Consumer to reimburse the legal costs and expenses.

CC No. 3752 of 2017

i. Deliver to Consumers legal possession of their respective flats with registered conveyance without raising illegal demands;

ii. Direct OP to revoke illegal demands raised on the pretext of alleged increased in Saleable Area;

iii. Direct OP to revoke illegal demands raised on the pretext of Escalation;

iv. Direct OP to refund charges collected on account of parking along with interest @ 15% from the date of payment till the date of refund;

v. Pay to Consumers compensation for the delay in delivery of possession of their apartments quantified as interest @15% per annum on the amounts paid to OP, from the date of each payment till the date of delivery of legal possession;

vi. Direct OP to compensate the Consumers for increase in tax liabilities on account of delay in completion including the levy of GST;

vii. Direct OP to construct the approach roads to the project and install the electricity, water and sewerage connection to make the apartments habitable and till then not to charge any maintenance charges from Consumers;

viii. Direct OP to pay a sum of Rs. 10,00,000/- (rupees ten lakhs only) for depleting the value and utility of the apartments by unilateral design changes;

ix. Pay a sum of Rs. 5,00,000/- (rupees five lakhs only) to each Consumer as compensation for mental suffering and harassment;

x. Pay a sum of Rs.5,00,000/- (rupees five lakhs only) to each Consumer as compensation unfair trade practices.

xi. Pay a sum of Rs.50,000/- to each Consumer to reimburse the legal costs and expenses.

CC No. 3753of 2017

i. Deliver to Consumers legal possession of their respective flats with registered conveyance without raising illegal demands;

ii. Direct OP to revoke illegal demands ra

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