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2025 Supreme(Online)(SCDRC) 974

STATE CONSUMER DISPUTES REDRESSAL COMMISSION
HON'BLE MR. JUSTICE MANOJIT MANDAL, PRESIDENT, HON'BLE MRS. MRIDULA ROY, MEMBER
Sri Pranoy Bhadra & Another – Appellant
Versus
Unnayan Developers Pvt. Ltd. – Respondent
Consumer Complaint No. SC/19/CC/674/2019



Advocates:
For the Complainants: Mr. Javed K. Sanwarwala, Shariq A. Sanwarwala, Farah Anjum
For the Opposite Party: Sujoy Ghosh Dastider, Ved Sharma

Breach of service agreement constitutes deficiency under Consumer Protection Act, warranting refund and compensation.

Headnote:The court analyzes the Consumer Protection Act, 1986 regarding the deficiency in service. The complainants paid an amount exceeding 50% for a plot but faced project delays and sought refunds and compensation. The court finds in favor of the complainants, stating the OP's cancellation constituted a deficiency in service. The court frames key issues regarding the consumers’ rights under the Act. The OP was deemed to have breached the contract, leading to a decision that includes a refund plus interest and compensation for the complainants. The complaint is allowed in part with costs.

ORDER

MRIDULA ROY, MEMBER

The instant petition is filed under section 17 of the Consumer Protection Act , 1986 alleging deficiency in providing housing construction service on the part of the Opposite Party (referred as `OP’ hereinafter).

Case of the Complainant in brief is that in May, 2012 the Directors and Agent of the OP have approached the Complainants for purchasing a specific plot of land being Plot No. A 55 measuring 4 cottah at Mouza –Kulberia J.L No. 7 Khatian No. 1140, Dag No. 649, Police Station –K.L.C., Dist-24 Parganas(South) on certain specific assurance containing in their brochure published regarding their project namely Unnayan Garden which were as follows:-

a) That the OP has the power and authority to sell the plot of lands to the Complainants;

b) That the total price of the said land including basic infrastructure cost is Rs.20,00,000/- only;

c) That the OP will develop the said plot of land by making roads for easy and free access to the said plot of land and by making side drains and other necessary works pertaining to the basic infrastructure within a period of 48 months from the date of payment of the 1st instalments;

d) In case of default, of two consecutive instalments the OP shall issue reminder notice to the Complainants asking them to make payment with interest;

e) The Complainant shall take possession of the plot of land within 15 days from the date of receipt of the notice from the OP that the work on their land is complete;

f) That the OP will complete the same in favour of the Complainants by presenting the date of conveyance for registration before concerned Registrar within thirty days from the date of final payment of all instalments and additional cost;

The Complainants have stated that they have paid an amount of Rs.4,00,000/- as down payment and also paid three instalments @ Rs.33333/- and in this way paid Rs.11,66,659/- on 11th May, 2012. Subsequently, an agreement for allotment was executed by and between the Complainants and the OP on 26th May, 2012. The Complainants have specifically alleged that in spite of receiving more than 50% of the agreed consideration amount the OP did not make progress in the Development work as the fact came to their knowledge since they visited the site on three occasions including the last one in December, 2017 and on each and every occasion they made contact to the OP Authority but did not get any satisfactory reply from the OP`s end. The indifferent attitude on the part of the OP compelled the Complainants to cancel their allotment and to get back the amount deposited by them along with interest. Subsequently, the Complainants served a letter dated 06.02.2019 upon the OP requesting them to complete the Development work in respect of the plot of land as per terms of the said agreement for allotment and register a proper Deed of Conveyance in favour of them on receipt of balance consideration within fifteen days from the date of receipt of the letter, otherwise to refund the consideration amount of Rs.11,66,659/- together with interest @ 18% per annum within fifteen days from the date of receipt of the said letter further demanding a sum of Rs.2,00,000/- towards compensation for causing mental agony etc. The said letter was duly received but they did not respond. Finding no other alternative the Complainant served a legal notice dated 20.05.2019 upon the OP through their Ld. Advocate alleging adoption of unfair trade practice by the OP and gross deficiency in service for wilful delay in development of the said plot of land and not completing the same etc. but that too went in vain. Accordingly, the Complainants have prayed for direction upon the OP to develop the said plot of land being plot no. A 55 at Mouza –Kulberia J.L No. 7 Khatian No. 1140, Dag No. 649, Police Station –K.L.C., Dist-24 Parganas (South) as per terms of the Agreement for sale dated 26.05.2012 and to deliver the same to the Complainants against payment of balance consideration and execute and r

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