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2022 Supreme(Online)(NCDRC) 1051

NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION
C. Viswanath, PM, Justice Ram Surat Ram Maurya, M
JITEN KUMAR DALAI & 49 ORS. – Appellant
Versus
ANTRIKSH REALTECH (P) LTD. & 2 ORS. – Respondent
Consumer Case No. 1808 of 2017



Advocates:
For the Appellants/Petitioners: Mr. Madhurendra Kumar
For the Respondents: Mr. Manish Kadian

Consumers are entitled to refunds and interest when builders fail to deliver properties within agreed timeframe, despite claims of force majeure.

Headnote:(A) Consumer Protection Act, 1986 - Sections 12(1)(c) - Class action complaint filed for delay in delivery of possession of flats - Opposite Party failed to deliver possession even after 10 years from the date of agreement, alleging force majeure - Court held that consumers cannot be made to wait indefinitely for possession and are entitled to refunds with interest. (Paras 2, 9, 10)

(B) Jurisdiction - The argument that the Consumer Forum lacked jurisdiction due to RERA registration was rejected, affirming that the remedy under the Consumer Protection Act is available regardless of RERA. (Paras 7, 10)

Facts of the case:
The Complainants allege the Opposite Party failed to deliver possession of flats in the Antariksh Sanskriti project despite payments made and passage of years, and requested refunds and compensation for mental harassment.

Findings of Court:
The Court found that the Opposite Party was guilty of deficiency in service due to failure in delivering possession and directed them to refund amounts with interest to the Complainants.

Issues: The main issues included the maintainability of the complaint under Consumer Protection Act despite registration under RERA, and accountability of the builder for delays and unfulfilled commitments.

Ratio Decidendi: The Court highlighted the right of consumers to seek refunds due to inordinate delays in delivery of possession, stressing the unacceptability of indefinite waiting for completion. The Consumer Protection Act provides additional remedies that are not curtailed by RERA.

Result: Complaint allowed, opposite parties directed to refund deposits with interest.

Table of Content
1. complaint addressing the delay in possession of flats. (Para 1 , 2 , 6)
2. opposite party's arguments against jurisdiction and maintainability. (Para 3 , 5)
3. court's observations regarding construction delays and consumer rights. (Para 4 , 9)
4. legal reasoning affirming the jurisdiction and rights of consumers. (Para 7 , 10)
5. final order directing refunds and interest payments to complainants. (Para 11)
ORDER

1. The present joint Complaint has been filed under Section 12 (1)(c) of the Consumer Protection Act , 1986, as a class action on behalf of and for the benefit of all the allottees in the project “ANTRIKSH SANSKRITI” situated at NH-24, Indirapuram, Ghaziabad (U.P.). Alongwith the Complaint, the Complainants also filed IA/9267/2017, an application for permission to file joint Complaint. This Commission, vide order dated 11.04.2018, allowed the application. Complainant No.1 is the authorized representative for other Complainants as stated in the affidavit.

2. The case of the Complainants is that in 2011 through advertisements Opposite Party No.1 expressed their intention to the General Public to develop the aforesaid project and to handover the flats to all purchasers within 30 months from the date of signing the Agreement with a grace period of 6 months. The allottees booked their respective flats in the Project and they were issued allotment letters. All allottees signed separate Agreements with the Opposite Party. According to the Complainants, the construction is still incomplete, even after passage of ten years from the date of the signing of the Agreement. The Opposite Party kept demanding payment of installments from the allottees without completing the project. Most of the Allottees, however, had deposited substantial amount for the flat, including other charges as per the demands raised by the Opposite Party. The Opposite Party never intimated the allottees any reason, whatsoever, for delay in completing the project. The flat purchasers made numerous visits to the office of the Opposite Party, sent various letters and e-mails enquiring the status of the project, but the Opposite Party did not respond to any request of the allottees. Further, the Opposite Party, without seeking consent from the allottees of the Project, increased the number of flats/units from 8 floors to 22 floors which was against the promise made in the brochure. This act of the Opposite Party reduced the common area and facilities in the Project. Alleging deficiency in service and unfair trade practice on the part of the Opposite Party, the Complainants approached this Commission by filing the instant Consumer Complaint with the following prayer:

“a) issue notice/public advertisement in the leading newspaper regarding institution of the present class action complaint to all the persons/buyers/consumers so interested in the “ANTRIKSH SANSKRITI” project situated at NH-24, Indirapuram, Ghaziabad (U.P.)” having same interest/common grievance and seeking the same/identical relief against the Opposite Parties;

b) hold the opposite parties guilty of deficiency in service and unfair trade practice against all the allottees of the said project named "ANTRIKSH SANSKRIT!" situated at NH-24, Indirapuram, Ghaziabad. (U.P.)”;

c) allow the present consumer complaint and direct the opposite parties/builder to deliver the actual and legally valid physical possession of the fully developed allotted flats in a habitable condition to all the allottees of the said project as per the terms and conditions of the Agreement and sale brochures within a short stipulated time limit to be determined by this Hon'ble Commission or in the alternative, if the subject project is likely to be delayed enormously or indefinitely, direct the opposite parties/builder to refund the entire deposited amount of all the allottees of the subject project alongwith compound interest @ 18% calculated quarterly from the date of respective deposit till the actual payment of the s

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