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2026 Supreme(Online)(NCDRC) 22

NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION
A.P. Sahi, President, Bharatkumar Pandya, Member
Rickers Estate Pvt. Ltd. – Appellant
Versus
M/s. Macrotech Developer Limited – Respondent
NC/CC/4/2024 | NC/IA/17986/2024



Advocates:
For the Appellants/Petitioners: Mr. S. Surender, Ms. Akansha Singh
For the Respondents: Mr. Aditya Narain, Mr. Vinayak Bhandari, Mr. Arnav Narain, Ms. Jaisal Singh, Mr. Mishra Raj Shekhar

A complaint under the Consumer Protection Act regarding a residential unit is time-barred if filed beyond two years from the cause of action due to non-disclosure of material facts and lack of continuing action.

Headnote:(A) Consumer Protection Act, 2019 - Section 58(1)(a) - Limitation for lodging a complaint - Complainant alleged deficiencies in service for failing to execute an agreement post-booking of a residential unit worth Rs. 13,16,15,460/-; complaint filed after 7 years was deemed time-barred due to delay in presenting the claim and suppression of material facts - The claim lacks standing as the cancellation notice was issued in 2017. (Paras 1, 10, 22)

(B) Continuing cause of action - The court examined whether there existed a continuing wrong; the 2017 cancellation established that any possible claims were extinguished, thus negating the argument for a continuing wrong. (Paras 15-21)

Facts of the case:
The complainant purchased a residential unit in 2014 but faced delays in finalizing agreements. Despite repeated requests for clarification, the developer failed to execute an agreement, leading to a cancellation request in 2020, following a previous unsuccessful approach to RERA in 2023.

Findings of Court:
The complaint is barred by limitation as there was a clear cancellation and communication regarding the unit back in 2017, along with evidence of non-disclosure of material facts. Time limits set by law were not satisfied.

Issues: Whether the complaint was filed within the limitation period and if there existed a continuing cause of action allowing the claim.

Ratio Decidendi: The court decided that the cancellation communicated to the complainant extinguished any actionable claims. The legal injury was complete at the time of cancellation, thereby rendering the present complaint time-barred.

Result: The complaint is dismissed.

Table of Content
1. complainant's allegations regarding transaction details. (Para 1 , 2 , 3)
2. timeline of events and requests for action. (Para 4 , 5)
3. opposite party's objections regarding the process. (Para 6 , 7)
4. details regarding the allotment process and payments. (Para 8 , 9)
5. contentions on limitation and cause of action. (Para 10 , 11 , 12)
6. court's analysis of the complainant's claims. (Para 13 , 14)
7. principle of continuing wrong analyzed. (Para 15 , 16 , 18)
8. determination of limitation and suppression of facts. (Para 19 , 21)
9. denial of the complaint based on insufficient cause of action. (Para 20 , 22)

ORDER

1. The present complaint has been instituted urging that the complainant had acquired a residential unit from the opposite party, the cost of the unit being Rs.13,16,15,460/-. As against the aforesaid price a sum of Rs.3,00,00,000/- is stated .to have been transferred to M/s. Shreeniwas Cotton Mills. The opposite party has stepped into its shoes after merger with the opposite party. The allegations in the complaint are that according to the agreed schedule, despite regular requests, the opposite party did not enter into any agreement to sell and a letter was written on 02.05.2017, requesting the opposite party to intimate about the exact date of constructions and also execute the agreement to sell. However, this indifferent attitude continued and therefore the complainant made a request on 05.08.2020 to cancel the booking. A complaint was earlier filed before the Rera Authority seeking refund of the entire amount, where a totally incorrect reply was filed by the opposite party. The Rera Authority refused to entertain the claim and passed orders on 28.06.2023, a copy whereof has been filed as annexure 7.

2. It is in this background that the present complaint has been filed for the following reliefs:

"a. To allow the present consumer complaint filed under section 58 (1)

(a) of the Consumer Protection Act, 2019 : And

b. Direct the respondent to accept the balance consideration amount of the fiat and handover the possession of the unit bearing no. West Wing W3701 in World Crest in the World Towers situated at Upper Worii, OR

c. Direct the Opposite party to pay an amount of Rs. 3,00,00,000/- (Rupees Three Crore Only) to the complainant alongwith 18% rate of interest from the date of payment till realization: AND

d. Direct the Opposite party to pay future interest @ 18% on the amount of3,00,00,000/- (Rupees Three Crore Only) from the date of payment tit! the date of realization: AND i?

e. Direct the Opposite party to pay an amount of Rs. 20,00,000/- (Rupees Ten Lakh Only) as compensation for mental harassment caused by the Opposite party to the complainant: AND

f. Direct the Opposite party to pay an amount of Rs. 5,00,000/- (Rupees Five Lakh only) as litigation expenses to the complainant: AND

g. Pass any other order that this Hon'ble Commission may deem fit in favor of the complainant and against the Opposite party."

3. Since the booking was of the year 2014 an order was passed by the Commission on 23.01.2024, calling upon the complainant to file a better affidavit regarding the issue of limitation as the present complaint has been filed after almost 10 years of the booking. The order dated 23.01.2024 is extracted herein under:

"Heard learned Counsel for the Complainant.

There are two issues which need to be clarified at the outset firstly as to the purpose of the purchase of the fiat by the Complainant who admittedly is a Private Limited Company. The purchase was initiated through a booking in the year 2014 itself when companies were not included within the definition of a consumer under the Consumer Protection Act, 1986 .

Learned Counsel for the Complainant has cited the order of this Commission in the Case of Springdale Core Consultants Pvt. Ltd. vs. Pioneer Urban Land and Infrastructure Ltd. decided on 14.07.2020 to urge that under the Consumer Protection Act, 2019 a company can be a complainant as it is a consume

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