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2026 Supreme(Online)(SCDRC) 2963

STATE CONSUMER DISPUTES REDRESSAL COMMISSION
Padma Pandey, Presiding Member, Rajesh K. Arya, Member
Rakesh Kochhar – Appellant
Versus
Omaxe Chandigarh Extension Developers Pvt. Ltd. – Respondent
Consumer Complaint No. 71 of 2025



Advocates:
For the Appellants/Petitioners: Karan Singla
For the Respondents: Vishal Singal, Sanjeev Sharma

A developer cannot indefinitely claim force majeure for delays beyond the government-mandated extension period, and failure to deliver possession within a reasonable timeframe constitutes a deficiency in service warranting compensation at 9% per annum interest on the deposited amount.

Headnote:(A) Consumer Protection Act, 2019 - Section 47(4) - Territorial and Pecuniary Jurisdiction - Consumer complaints alleging deficiency in service due to delay in possession - State Commission jurisdiction is invoked based on the place of residence of the complainant and the value of consideration paid exceeding the threshold of District Commission - Continuing cause of action exists until possession is delivered, rendering the complaint within limitation. (Paras 9, 10, 11)

(B) Consumer Protection Act, 2019 - Real Estate - Delay in delivery of possession - Force Majeure - COVID-19 pandemic - Immunity for delay restricted to mandated administrative period provided by government memorandums - Failure to deliver possession after grace period constitutes deficiency in service and unfair trade practice. (Paras 12, 13)

(C) Compensation - Quantum of interest - For delay in delivery of possession, reasonable compensation is defined by interest on deposited amount at 9% per annum from the end of the reasonable timeline - Compensation for mental agony, harassment, and litigation expenses also awarded. (Paras 14, 16)

Facts of the case:
The complainant purchased a residential unit from the opposite party with a promised possession date of 31.07.2021. Despite substantial payments of Rs.86,33,362, the developer failed to deliver possession. The developer argued that the delay was attributable to COVID-19 related force majeure circumstances and challenged the territorial and pecuniary jurisdiction of the Commission.

Findings of Court:
The Court rejected all preliminary objections, holding that it had the necessary territorial and pecuniary jurisdiction. It held that while a 9-month grace period for COVID-19 was justified, the continued failure to provide possession beyond that date rendered the developer liable for deficiency in service.

Issues: Whether the Commission has jurisdiction; whether the complaint is time-barred; whether the developer is liable for delay given the force majeure contentions; and what is the appropriate compensation.

Ratio Decidendi: A developer cannot indefinitely rely on force majeure for project delays; once the reasonable extension period (provided by government notification) concludes, legal liability for payment of interest at a fair market rates (9% p.a.) attaches for the deficiency in service.

Result: Complaint allowed with directions for delivery of unit and compensation.

PER MRS. PADMA PANDEY, PRESIDING MEMBER

This complaint has been filed by the complainant seeking possession of the unit purchased by him alongwith compensation for the period of delay etc., as he is aggrieved of delay and latches; deficiency in providing service, negligence and adoption of unfair trade practice on the part of the opposite party. It has been alleged by the complainant that despite the fact that he has made payment of substantial sale consideration of ₹86,33,362 i.e. (₹77,08,359.85 + ₹9,25,003.15 as ST/GST) for the period from 15.09.2018 to 24.04.2019, against total sale consideration of ₹83,26,729.00 (as per statement, Annexure C-6). The complainant also availed loan facility of ₹20,00,000/- from State Bank of India, for which a Tripartite Agreement dated 15.10.2018, Annexure C-3, was executed between the complainant, builder and the bank. An agreement for sale, dated 21.12.2018, Annexure C-5 was also executed between the parties as per Clause 7.1 whereof, the possession of the unit was to be handed over by 31.07.2021, yet the opposite party has not offered legal and valid possession of the unit for want of development and construction at the project site and the requisite occupation and completion certificate. Schedule D annexed with the agreement for sale governed the payment plan of the unit in question. Details with regard to the project; unit purchased by the complainant; payments made by them etc. are given below:-

Project “The Lake”, Omaxe New Chandigarh, SAS Nagar (Punjab)
Date of booking: 15.09.2018

(confirmed on 29.09.2018 vide Annexure C-2)

Tripartite Agreement: 15.10.2018 (Annexure C-3)
Apartment No. TLC/EMERALD-B/SIXTH/604
Area of the unit 2300 sq. ft.
Total cost ₹87,59,515.00 excluding ST/GST of ₹10,23,482.00

(Payment plan - Schedule-D)

(totaling ₹97,82,997.00)

However ₹83,26,729.00 as per Annexure C-6

Total amount paid till date ₹86,33,362

(₹77,08,359.85 + ₹9,25,003.15 as ST/GST)

for the period from 15.09.2018 to 24.04.2019

Due date of possession 31.07.2021

[as per Clause 7.1 of agreement for sale dated 21.12.2018, Annexure C-5)

Possession offered or not Not yet
Delay in years more than 4 years 8 months
Allottee Original allottee

2] Alleging aforesaid acts as deficiency in rendering service and unfair trade practice on the part of the opposite party, the complainant has filed the instant complaint seeking directions to the opposite party to deliver possession of the unit in question after obtaining completion and occupancy certificate from the competent authority on receipt of legally due amount from the complainant; execute and get registered the sale deed; pay compensation by way of interest @12% p.a. on the deposited amount for the period of delay starting from 31.07.2021 till handing over of the possession; refund ₹9,25,003/- charged as ST/GST alongwith interest @12% per annum; pay compensation of ₹1,00,000/- for deficiency in service, mental torture, harassment and unfair trade practice and also pay ₹1,00,000/- as litigation expenses.

Reply of the opposite party:-

3] The opposite party, in its written reply, while admitting factual matrix of the case with regard to sale of the unit in question, execution of tripartite agreement & agreement for sale; payments made by the complainant took various objections/pleas as under:-

i. this Commission lacks territorial jurisdiction to entertain and try the complaint as neither the subject project nor the opposite party fall within its territorial jurisdiction;

ii. this Commission also lacks pecuniary jurisdiction;

iii. the complaint is barred by limitation under the provisions of Section 69 of the Consumer Protection Act, 2019;

iv. that the complainant himself sought a down payment discount and a discount of ₹2,57,307/- was duly granted and the agreement was consequently executed at the discounted price;

v. that the possession of the unit in question, which was to be delivered on 31.07.2021, got delayed due to disruptions caused by Cov

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