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2024 Supreme(Online)(NCDRC) 1813

NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION
MR. JUSTICE RAM SURAT RAM MAURYA, MR. BHARATKUMAR PANDYA, JJ
CHLORIS WELFARE ASSOCIATION – Appellant
Versus
M/S MAHINDRA LIFESPACE DEVELOPERS LTD. – Respondent
CC/111/2013



Advocates:
For the Petitioner: M/S. TRANS JURIS, MR. RAJIV KAPOOR & MR. SRIKANT SHARMA
For the Respondent: M/S. HAMMURABI SOLOMON & PARTNERS

The defect liability period limits the developer's liability for construction defects, and the burden of proof lies with the complainant to substantiate claims of substandard construction.

Headnote:(A) Consumer Protection Act, 1986 - Sections 2(i) and 13 - Complaint for deficient services and sub-standard construction - Complainant sought rectification of defects, compensation for mental agony, and provision of basic amenities - Allegations of structural failure and poor quality construction were made against the developer - Developer denied allegations, asserting compliance with standards and regulations - The defect liability period was cited as a defense against claims post-occupancy. (Paras 2-12)

(B) Defect Liability Period - The court emphasized that the defect liability period is one year, during which no complaints were made by flat buyers regarding construction defects - The burden of proof lies with the complainant to establish claims of substandard construction. (Paras 7-9)

Facts of the case:
The complainant, Chloris Welfare Association, alleged that the developer failed to deliver promised amenities and constructed substandard flats in the Mahindra Chloris project, leading to structural issues and inadequate water supply. The developer contended that all construction was completed as per approved plans and standards, and that the complainant failed to provide evidence of defects. (Paras 2-6)

Findings of Court:
The court found that the developer had complied with statutory requirements and that the complainant did not substantiate claims of poor construction or inadequate amenities. The complaint was dismissed. (Paras 6-12)

Issues: The main issues included whether the developer was liable for construction defects and whether the complainant could claim compensation for alleged deficiencies after the defect liability period. (Paras 7-10)

Ratio Decidendi: The court ruled that the complainant failed to prove allegations of substandard construction and that the developer had fulfilled its obligations under the agreement. The defect liability period limited the developer's liability for post-occupancy complaints. (Paras 7-9)

Result: Complaint dismissed.

ORDER

1. Heard Mr. Rajiv Kapoor, Advocate, for the complainant and Mr. Sudhir Makkar, Sr. Advocate, assisted by Mr. Rohit Jolly, Advocate, for the OP.

2. Chloris Welfare Association has filed above complaint for directing opposite party to (i) rectify all structural defects as well as other defects as reported in DLP in the high-rise building “Mahindra Chloris” situated at 16/3, Mathura Road, Sector-19, Faridabad and resolve all the issues to the satisfaction of the complainant within stipulated period; (ii) pay Rs.40.- crores, as compensation for deficient, negligent services and sub-standard construction of 160 flats, in the said building; (iii) immediately provide adequate & wholesome water supply to all the residents; (iv) pay delay compensation to all the home buyers in the said building, in terms of the agreement from 10.07.2011 till the date of providing basic amenities and removal of all the defects; (v) pay Rs.5/- crores, as the compensation for mental agony and harassment; (vi) repossess the convenience shops from the owners/occupiers and handover to the complainant at reasonable price for running cooperative stores in it; (vii) recover three parking spaces from the store owner and give it to the flat buyers on priority basis as per wait list; (viii) immediately provide all the committed features in the security system and rectify all the defects in the same; (ix) pay Rs.13/- lacs, as litigation costs; and (x) any other relief which is deemed fit and proper in the facts and circumstance of the case.

3. The complainant stated that Chloris Welfare Association is an association, formed by the flat owners of the “Mahindra Chloris” and registered under Societies Registration Act, 1860, on 06.04.2012. M/s. Mahindra Lifespace Developers Limited (the OP) was a company, registered under the Companies Act, 1956 and engaged in the business of development and construction of group housing projects. The OP launched a group housing project in the name of “Mahindra Chloris” at 16/3, Mathura Road, Sector-19, Faridabad, in an area of 392814 square feet, consisting 160 flats (40 flats of the area around 2000 sq.ft., 80 flats of the area around 2400 sq.ft., 40 flats of the area around 2900 sq.ft. and 28 EWS flats), in the year, 2008 and made wide publicity of its amenities and facilities. The OP made sky rocketing promises and assurance that international standard apartments, just luxurious, re-defined concept of ‘e-security’ with high amenities, that have never been seen before. The OP advertised as IEC Secured Homes ‘Mahindra Chloris’ is an unique residential complex that has IEC security. These homes are electronically savvy, with special emphasis on earthquake resistance. Their e-connectivity allows you to control the apartments from anywhere in the world, even while you are on holiday’. My Green Home ‘One of the key highlights of ‘Mahindra Chloris’ would be that it will be built on the concept of “Green Building” under Leadership in Energy and Environmental Design (LEED) CS Certification. Guidelines stipulated by United States Green Building Council (USGBC). The project will be provisioned to have ample greenery out of the total area developed ensuring plenty of open spaces’. Highlights of Green Building ‘Improved ventilation effectiveness by providing open-able window space to floor ratio. Low VOC paints, adhesives and sealant, which helps in maintaining good indoor air quality. High Albedo insulating material on roof to reduce the heat absorption and energy demand for air conditioning. Use of low emissivity glass to reduce the energy requirement for indoor air-conditioning’. Living & Dining Spaces ‘Mahindra Chloris’ promises to be your ultimate living experience. The architecture, the landscaping, the structural finesse and exquisite aesthetics will simply sweep you off your feet’. Amenities & Clubs Spaces ‘The difference in amenities is the layout positioning and functionality. A very well designed parking lot f

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