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2022 Supreme(Online)(SC) 779

SUPREME COURT
, J
Patel B. B. and Others v. DLF Universal Ltd.
RTPE No. 36 of 1999



Advocates:
For the Appellants/Petitioners: Mr. M. L. Lahoti
For the Respondents: Mr. Pinaki Mishra

The court found no unfair trade practice in the delivery delay of apartments, emphasizing contractual clauses allowing reasonable time extensions and permitting extra charges as valid under the agreement.

Headnote:(A) Monopolies and Restrictive Trade Practices Act, 1969 - Sections 36-A, 36-B(a), 36-B(d), 36-D, 36-E, and Sections 2(i) and 2(o) - Unfair trade practice - Appellants alleged delay in handing over possession and imposition of extra charges as unfair trade practices - Commission dismissed complaint stating no misrepresentation established and delay did not constitute unfair trade practice - Increased charges deemed permissible as per Apartment Buyer Agreement (ABA). (Paras 1, 8, 21, 24)

(B) Consumer Protection Act, 1986 - Definition of unfair trade practice under this Act aligns with MRTP Act's provisions - Reliefs claimed by appellants lacked support from substantial evidence. (Paras 11, 12)

(C) Joint venture agreements - Terms found unconscionable not impactful on the outcome in this case, as the appellants did not terminate the agreement for delay - Claims for compensation could not be granted. (Paras 22, 24)

Facts of the case:
The appellants sought possession of apartments after significant delays attributed to construction and alleged unfair practices by the respondent in an Apartment Buyer Agreement. The respondent contended the delays were justifiable and charges were valid per the contract.

Findings of Court:
The MRTP Commission found no unfair trade practices; the agreement contained clauses permitting delays and justifying extra charges.

Issues: The applicability of the MRTP Act, the specification of possession timelines, and allegations of unfair trade practices based on delays and cost impositions.

Ratio Decidendi: The court established that the absence of a stipulated time frame for possession and the valid grounds for construction delays rendered the respondent's actions permissible under the contract terms.

Result: Appeal dismissed; possession granted upon payment of Rs. 25,00,000 for each flat.

Table of Content
1. complaint against unfair trade practices (Para 1 , 2 , 4 , 5 , 6)
2. details of the apartment buyer agreement (Para 3)
3. jurisdiction issues and complaint dismissal (Para 7 , 8)
4. arguments by both parties presented (Para 9 , 10 , 11)
5. legal standards for determining unfair trade practices (Para 12 , 13 , 14 , 15 , 16 , 17 , 18 , 19)
6. analysis of unconscionable contract claims (Para 20 , 21 , 22 , 23 , 24)
7. final directives and payment orders (Para 25 , 26 , 27)

1. This appeal has been filed against the judgment dated 19/01/2009 of the Monopolies and Restrictive Trade Practices Commission, New Delhi dismissing a complaint filed by the appellants under S.36 - A, 36 - B(a) and (d), 36 - D and 36 - E read with S.2(i) and S.2(o) of the Monopolies and Restrictive Trade Practices Act, 1969 (hereinafter referred to as “MRTP Act”).

2. An advertisement was issued by the respondent proposing attractive schemes of payment for the sale of group housing apartments / flats namely, “Beverly Park - I” at Qutab Enclave Complex in Gurgaon. According to one of the schemes, possession of the flats / apartments was to be handed over on payment of 40% of the cost of the flat within 2 1/2 (two and half) years and the balance amount was to be paid within equated instalments over the next seven and half years. On 14/01/1993, the appellants applied for allotment of 4 apartments Nos. 404A, 404B, 406A and 406B in Tower No. 4, Windsor. By choosing the aforementioned option, the appellants sought to make payment for the apartments within a period of 10 years. According to the application form, possession was to be delivered to the appellants as “Licensees” for use and occupation on a monthly License Fee till the balance sale consideration was paid. Flats with super area of 270.35 sq. meter at the basic sale price of Rs.7,525/- per sq. meter were allotted to the appellants. Apart from the basic sale price, External Development Charges (EDC) @ Rs.376/- per sq. meter, construction deposit of Rs.21.5 per sq. meter and lumpsum security of Rs.15,000/- were to be paid by the appellants for each flat.

3. The Apartment Buyer Agreement (hereinafter referred to as “ABA”) was executed on 23/03/1993. The relevant clauses of the ABA are as under:
“2(b). The Apartment allottee shall additionally pay on demand to the Company his proportionate share of the cost for the provision of external electrification (including but not limited to installation of electric sub-station, meter box, electric stand - by generator) and all fire safety measures (including but not limited to fire fighting equipment and other accessories, materials and other items required for the installation and use of the aforesaid equipment.). In addition, if due to subsequent legislation / Govt. orders of directives or guidelines or if deemed necessary by the Company, any further fire safety measure are undertaken, the proportionate charges in respect thereof shall also be payable on demand by the Apartment allottee.
2(c). The Apartment Allottee shall pay a further sum of Rs. _________ (Rupees _________ only) as preferential location charges as per schedule of payments (Annexure II) annexed hereto. However, if due to change in the layout plan and consequent change in the allotment of the Apartment, it ceases to be so located or there is a change in the preferential location before or after the registration of sale deed, the Company shall be liable only to refund without interest extra charges recovered for such preferential location or shall be entitled to recover extra preferential location charges as the case may be.
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4. The price of the Apartment stipulated hereinabove is based on the price of all materials and labour charges pertaining thereto ruling on the 1st day of January, 1993. If, however, during the progress of work, there is increase in the price of the materials used in the construction work and or labour charges on account of any reason statutory




























































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