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2026 Supreme(Online)(SCDRC) 3710

STATE CONSUMER DISPUTES REDRESSAL COMMISSION
Sangita Dhingra Sehgal, President, Bimla Kumari, Member
Sushma Goel – Appellant
Versus
Parsvnath Developers Ltd. – Respondent
COMPLAINT CASE NO.- 5/2023



Advocates:
For the Appellants/Petitioners: Rajesh Bhatia
For the Respondents: T.P. Chauhan, Vani Gupta

Failure by a developer to deliver possession of a residential unit within the stipulated contract period constitutes a deficiency of service under the Consumer Protection Act, 2019, entitling the aggrieved buyer to a full refund of deposit, interest, and compensation.

Headnote:The dispute arises under the Consumer Protection Act, 2019 regarding the deficiency of service by a developer for failing to deliver possession of a residential flat within the contractually stipulated period of 36 months despite receiving a substantial portion of the sale consideration. The complainant sought a refund of the deposited funds along with interest and compensation. The Commission determined that the developer failed to fulfill its contractual obligation, thereby causing mental agony and harassment to the consumer. The court framed issues regarding the status of the complainant as a 'consumer' and the maintainability of the complaint. Relying on settled precedents, the court held that the purchase of a residential unit does not constitute a commercial purpose in the absence of evidence, and that the failure to deliver possession is a recurring cause of action. The ratio decidendi established that a developer's failure to provide possession within a reasonable time constitutes a deficiency of service, entitling the consumer to a refund and compensation. The Commission directed the developer to refund the entire amount paid by the complainant along with 6% interest, with an increase to 9% in the event of default, and further awarded compensation for mental agony and litigation costs.

Table of Content
1. overview of complaint, facts, and initial procedural history. (Para 1 , 2 , 3 , 4 , 5 , 6 , 7 , 8)
2. status of the complainant as a 'consumer' under the consumer protection act. (Para 9 , 10 , 11 , 12 , 13 , 14 , 15)
3. limitation period and recurring cause of action for non-delivery of possession. (Para 16 , 17 , 18 , 19 , 20)
4. jurisdiction of the consumer commission over contractual disputes and housing services. (Para 21 , 22 , 23 , 24 , 25 , 26 , 27)
5. definition and determination of deficiency in service due to construction delays. (Para 28 , 29 , 30 , 31 , 32 , 33)
6. granting relief: refund of deposit plus interest and compensation. (Para 34 , 35 , 36 , 37 , 38)

Present: None for the Complainant

Mr. T.P. Chauhan and Ms. Vani Gupta, counsel for the OP (Mobile: 9013839160)

PER: HON’BLE JUSTICE SANGITA DHINGRA SEHGAL (PRESIDENT)

JUDGMENT

1. The present complaint has been filed by the Complainant under Consumer Protection Act, 2019 before this commission alleging deficiency of service on the part of Opposite Party and has prayed the following reliefs:

a) Direct the respondent to pay a sum of Rs.53,49,478.71 (Rupees Fifty Three Lacs Forty Nine Thousand Four Hundred Seventy Eight and Seventy One Paisa) being the principle amount;

b) Direct the respondent to pay Rs.5,00,000/- on account of mental pain, agony and mental harassment;

c) Direct the respondent to pay the Rs.2,00,000/- on account of litigation charges;

d) Direct the respondent to pay the pende-lite an future interest @24% per annum from the date of filing of the Complaint till it’s realization;

e) Award the cost of omplaint;

f) Any further orders.

2. Brief facts necessary for the adjudication of the present complaint are that the Complainant booked a residential flat in the project namely ‘Parsvnath Privilege’ developed by the Opposite Party at Greater Noida, Uttar Pradesh. Subsequently, the Opposite Party vide Provisional Allotment Letter dated 23.03.2007, allotted flat bearing no. T15-1201 admeasuring 1855 sq. ft. in the aforesaid project. Thereafter, a Flat Buyer Agreement dated 21.07.2007 was executed between the parties with respect to the said flat for a total sale consideration of Rs.52,86,756/-. The Complainant opted for the construction-linked payment plan for the said flat. As per Clause 10(a) of the Flat Buyer Agreement dated 21.07.2007, the Opposite Party was required to complete the construction of the said flat within 36 months from the date of commencement of construction of the particular block in which the said flat was situated. However, the Opposite Party failed to complete the construction of the said flat till date. Moreover, the Complainant made several communications regarding the status of construction and delivery of possession but the Opposite Party failed to provide any satisfactory response.

3. The Complainant over the time had paid a sum of Rs.53,49,478.71/- to the Opposite Party as and when demanded by it. The Complainant also sent a legal notice dated 27.08.2022 to the Opposite Party seeking possession of the said flat or in the alternative, refund of the amount paid along with interest but the same was of no avail.

4. During the course of proceedings, notice was issued to the Opposite Party on 19.01.2023. However, the Opposite Party failed to file its written statement within the period stipulated under the Consumer Protection Act, 2019 despite service. Consequently, this Commission vide order dated 24.07.2023, closed the right of the Opposite Party to file the written statement. Since the Opposite Party failed to file its written statement, the averments made by the Complainant in the present complaint remain unrebutted.

5. The Complainant has filed evidence by way of affidavit in order to prove the averments made in the present complaint.

6. The Complainant has filed written arguments and reiterated the allegations made in the present complaint.

7. The Opposite Party has filed written arguments and raised preliminary

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