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