Delay in construction led to deficiency in service, resulting in liability for interest on amounts paid by the complainants.

JUDGMENT

SRI. AJITH KUMAR D. : JUDICIAL MEMBER

This is a complaint filed under Sec. 17 of the Consumer Protection Act , 1986.

2. The Puravankara Projects Ltd. and its Managing Director are the opposite parties. They are engaged in the construction of the apartment. On 28.08.2006, the complainants had entered into agreements with the opposite parties for the sale of undivided share in the land comprising in 104.9578 Ares and construction of the apartment having a super built area of 1496.23 sq. ft. The construction has to be completed within 30 months from the date of obtaining commencement certificate for the project from the relevant authority. The complainants were made to believe that the opposite parties had already obtained the building permit from the Corporation of Cochin and assured that the construction would be completed by 2009 and a three bed th room apartment bearing No. 710 on the 7 floor in the GD Block with covered car parking area be handed over to the complainants. The total consideration was fixed as Rs. 86,73,470/- (Rupees Eighty Six Lakh Seventy Three Thousand Four Hundred and Seventy only). The complainants started payment of the amount as and when demanded by the opposite parties. But the construction was progressing in a slow manner and the progress was not in accordance with the payment schedule. By 29.04.2011, the complainants had paid an amount of Rs. 54,10,545/- (Rupees Fifty Four Lakh Ten Thousand Five Hundred and Forty Five only). The complainants had to avail loan also for effecting the payments. The construction was unduly delayed. Despite having received 65% of the amount, the opposite parties never cared to complete the project. The opposite parties had siphoned the amount to other projects. Though 65% of the amount was collected, the structure was not even completed. On account of the compulsion of the complainants, the sale deed was executed on 15.01.2015. There is deficiency in service and unfair trade practice on the side of the opposite parties in causing undue delay in completing the work. The opposite parties ought to have paid the interest for the amount of Rs. 54,10,545/- (Rupees Fifty Four Lakh Ten Thousand Five Hundred and Forty Five only) received by them. The complainants would seek for interest @ 15% for the amount of Rs. 54,10,545/- (Rupees Fifty Four Lakh Ten Thousand Five Hundred and Forty Five only) from 29.04.2011 till payment. The complainants would also seek for realization of compensation of Rs. 10,00,000/- (Rupees Ten Lakh only) and Rs. 25,000/- (Rupees Twenty Five Thousand only) as litigation costs.

3. The opposite parties had filed a written version. They would admit the execution of the agreements and also the registration of the sale deed in favour of the complainants. According to them, the complaint has been filed as an afterthought with a view to gain illegal enrichment. The complaint is not maintainable as the dispute arose from the terms and conditions of the agreements for sale and construction. The transactions are commercial contracts and the adjudication requires recording of detailed evidence which is beyond the purview of the Consumer Protection Act . The complainants being defaulters are not entitled for any relief. However, the opposite parties would admit that the complainants had approached them seeking allotment of an apartment. The complainants were liable to pay the total amount of Rs. 86,73,470/- (Rupees Eighty Six Lakh Seventy Three Thousand Four Hundred and Seventy only) towards cost of the apartment and undivided share of land inclusive of Rs