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2025 Supreme(Online)(NCDRC) 3018

NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION
A.P Sahi, President, Bharatkumar Pandya, Member
Nancy Lake Homes Co. Op. Housing Society Ltd. – Appellant
Versus
Nancy Icon Builders And Developers – Respondent
CONSUMER COMPLAINT NO. 677 OF 2015



Advocates:
For the Appellants/Petitioners: Dnyanaraj G. Sant
For the Respondents: Rahul S. Gandhi

A housing society formed under statutory mandate qualifies as a consumer and can initiate proceedings for common area deficiencies and conveyance of title, provided the claims are not time-barred or purely monetary, and the developer's failure to execute a conveyance deed constitutes a continuing cause of action.

Headnote:(A) Consumer Protection Act, 1986 - Sections 2(1)(b), 2(1)(d), 12(1)(a) - Maharashtra Ownership Flats Act (MOFA) - Consumer complaint by housing society - Competence of society to file complaint where residents’ welfare association is formed under statutory mandate - Held, association so formed is a valid complainant as it represents interest of consumers being a beneficiary of construction services - Society is entitled to lodge complaint regarding common areas and facilities. (Paras 8, 9)

(B) Limitation - Complaint filed after delay - Allegations regarding maintenance funds and monetary claims - Held, claims not raised in prior litigation before other forum or occurring after long duration without justification are time-barred and cannot be entertained as they constitute pure money claims involving accounting, not deficiency in service. (Para 9)

(C) Conveyance of Property - Statutory obligation - Non-execution of conveyance deed in favour of society by developer - Held, this constitutes a continuing cause of action and a persistent deficiency in service. (Para 11)

Facts of the case:
A housing society filed a complaint against developers alleging deficiency in service concerning structural defects, leakage, incomplete common amenities, and failure to provide statutory documents, alongside claims for refund of maintenance amounts. The developer contested the maintainability of the complaint, arguing that the society was not a 'consumer', the claims were time-barred, and that common amenities were already provided in accordance with sanctioned plans.

Findings of Court:
Evidence submitted by the complainants was largely found to be unsubstantiated and belated. The developer produced documentation confirming completion certificates and fire safety compliance. However, the failure to execute the conveyance deed was established as a recurring statutory failure, and the failure to provide promised security technology was admitted.

Issues: Whether a society compulsorily formed under state law is a 'consumer'; whether claims for refund of maintenance funds constitute deficiency in service; whether non-execution of conveyance constitutes a continuing breach.

Ratio Decidendi: Cooperative societies formed under statutory mandate act as beneficiaries of construction services and have the locus standi to represent residents' interests. While subjective claims of structural deficiency not supported by credible evidence are rejected, the statutory failure to transfer title (conveyance) is a continuing legal wrong. Pure money claims for accounts are not consumer disputes if not linked to direct deficiency in service and are subject to limitation.

Result: Complaint partly allowed; developers directed to execute conveyance deed within six months and pay compensation for unfulfilled amenities with interest.

Table of Content
1. allegations of construction deficiencies and lack of statutory conveyance. (Para 1 , 2)
2. opposition's defense against deficiency claims and evidence of compliance. (Para 3)
3. rejoinders and factual dispute over maintenance accounts and handovers. (Para 4 , 5 , 6)
4. arguments regarding maintainability, locus standi, and limitation periods. (Para 7)
5. cooperative society's competence to file consumer complaints. (Para 8 , 9)
6. evidentiary requirements for claims and limitation of money claims. (Para 10)
7. mandatory conveyance execution and compensation for specific unfulfilled promises. (Para 11 , 12)

JUDGEMENT

PER HON'BLE MR. BHARATKUMAR PANDYA, MEMBER

1. Heard Mr. Dnyanaraj G. Sant, Advocate for the Complainant and Mr. Rahul S. Gandhi, Advocate, for Opposite Party.

2. The present consumer complaint, has been filed by M/s Nancy Lake Home Co-operative Housing Society Ltd. on behalf of its members against the Opposite Parties, Nancy Icon Builders & Developers and Nikkita Builders & Developers, alleging deficiencies in service, failure to provide promised amenities, non-execution of conveyance, and persistent negligence in completing statutory obligations and essential facilities. The Opposite Parties launched a residential project known as “Nancy Lake Home” at Katraj, Pune, consisting of 383 flats across multiple buildings, for which possession was given in phases between 2010 and 2014. Based on brochures, representations, sanctioned plans, and written agreements, flat purchasers were assured a wide range of amenities including a podium, clubhouse, children’s play area, solar system, swimming pool, fire fighting equipment, proper drainage and sewage systems, water supply network, internal roads, recreational areas, and adequate safety installations. The Society was duly registered on 10.12.2009, after which it assumed responsibility for coordinating with the builder for the completion of pending works. According to the complainant, after taking possession, the residents observed that a large number of amenities were incomplete, non-functional, substandard, or not provided at all, contrary to the contractual assurances. Defects and deficiencies highlighted include podium water leakages, an undersized and poorly constructed children’s play area, leakage-prone swimming pool, incomplete clubhouse and gym facilities, non-operational solar water system, inadequate fire fighting equipment, blocked drainage/sewage system, damaged or unfinished internal roads, incomplete compound wall, and absence of CCTV surveillance. Photographs (Annexures C-7 to C-12) and a professional architectural inspection report (Annexure C-13) estimated the cost of rectifying these defects at Rs.2.05 crores. The Society had to independently spend Rs.9,32,928/- for repairing the fire system and Rs.2,19,332/- for installing CCTV cameras due to the builder’s neglect. Residents also pointed out widespread construction defects such as leakages, cracked plaster, uneven flooring, rusting reinforcement bars, and poor-quality fittings in individual flats and common areas.

2.2 The complainant alleges that the builder failed to obtain critical statutory approvals such as Completion Certificate (CC) and Occupancy Certificate (OC) for all buildings, thereby exposing residents to safety and legal risks and forcing them to pay higher water charges, taxes, and penalties to municipal authorities. Despite repeated letters, meetings, and legal notices issued between 2013 and 2015 (Annexures C-14 to C-20), the builder allegedly stopped attending to complaints, abruptly discontinued maintenance, and refused to supply essential documents such as sanctioned plans, title deeds, fire safety documents, water connection approvals, lift licenses, and engineering drawings. The complainant further asserts that the builder collected substantial sums from members toward corpus fund, development charges, and maintenance amounts, but failed to maintain transparent accounts or

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