Judicial Analysis Court Copy Headnote Facts Arguments Court observation

2020 Supreme(Online)(NCDRC) 954

NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION
PREM NARAIN, PRESIDING MEMBER
MANOJ AGGARWAL & ANR. – Appellant
Versus
ORRIS INFRASTRUCTURE PVT. LTD. & ANR. – Respondent
CONSUMER CASE NO. 2009 OF 2017|CONSUMER CASE NO. 21 OF 2018|CONSUMER CASE NO. 3416 OF 2017|CONSUMER CASE NO. 3417 OF 2017|CONSUMER CASE NO. 51 OF 2018|CONSUMER CASE NO. 52 OF 2018|CONSUMER CASE NO. 53 OF 2018

Advocates:
For the Appellants/Petitioners:Mr. Aditya Parolia, Advocate, Mr. Zahid Hussain, Advocate
For the Respondents:Mr. Pankaj Vivek, Advocate, Mr. Anurag, Advocate, Mr. Dhananjay Jain, Advocate, Mr. Subhojoy Banerjee, Advocate

Contractual obligations to complete construction timely can make builders liable for refunds if the possession is delayed excessively.

Headnote:(A) Consumer Protection Act, 1986 - Section 14(1)(d) - Compensation for delays in possession of residential units - Complaints filed for deficiency in service against developers of housing project. (Paras 1-24)

(B) Time is of the essence in construction agreements - Failure to deliver possession within stipulated period allows buyers the right to seek refund. (Paras 18-19)

(C) Delay can be justified only under force majeure conditions, which builders failed to substantiate. (Paras 14-16)

Facts of the case:
Complainants booked apartments in OP's 'Greenopolis' project but faced delays in possession beyond the stipulated timeframes, despite significant payments, leading to complaints for refund and interest. (Paras 2-8)

Findings of Court:
Court determined that developers did not complete construction on time, resulting in orders for refund with interest. (Paras 19-24)

Issues: The validity of delay claims, potential force majeure excuses, and entitlement to refunds with interest. (Paras 9-12)

Ratio Decidendi: The court established that failure to deliver possession on time constitutes a breach of contract, entitled buyers to refunds and reasonable interest, despite builders' claims of force majeure. (Paras 18-20)

Result: Complaints allowed; developers directed to refund amounts with specified interest rates.

Table of Content
1. factual background of complaints regarding possession. (Para 1 , 2 , 3 , 4 , 5 , 6 , 7 , 8)
2. initial classification of complaints for refund and possession. (Para 9)
3. discussion on prior judgments and claims. (Para 10 , 11 , 12 , 13 , 14)
4. arguments regarding force majeure and contractual obligations. (Para 15 , 16)
5. court's assessment of breaches and obligations. (Para 17 , 18 , 19)
6. final ruling on refunds and compensation due. (Para 20 , 21 , 22 , 23)

ORDER

These consumer complaints have been filed by the complainants Manoj Aggarwal & others who are the allottees of the project “Greenopolis” situated in Sector 89, Gurgaon alleging deficiency in service on the part of the opposite parties Orris Infrastructure Pvt. Ltd. &anr. As the complaints have been filed with more or less similar prayers against the same opposite parties, therefore, they are being decided together.

CC 2009/2017

2. The brief facts of the case are that Complainants booked an apartment in August 2012 in OP’s project “Greenopolis” for total consideration of Rs.1,02,93,719/-. Through allotment letter dated 21.08.2012, apartment no. 204 on 2^nd floor in Tower-15 having a super area of 1957 Sq. Ft. was allotted. The Flat Buyer’s Agreement was executed between the parties on 18.05.2013. The complainants obtained loan of Rs.75 Lakhs from SBI by executing a tripartite agreement and thereby complainants are still paying interest @ 9.1% per year on the loan amount. As per clause 5.1 of the agreement, the opposite party Three C Shelters Pvt. Ltd. shall complete the construction within 42 months inclusive of 6 months grace period from the date of allotment i.e. by 21.02.2016 but OPs failed to do so. Till date, Complainants have paid Rs.95,00,000/- to opposite party Orris Infrastructure Pvt. Ltd., where last installment was paid on 28.12.2015. The prayers made in the complaint are as follows:-

To direct OPs to handover the complete possession of flat along with all the documents and facilities within 8 months of this petition or as commission deems fit.

To direct OPs to pay interest @ 18% p.a. on the amount deposited by the complainants with effect from Feb 2016 till the date of actual possession.

To direct OPs to pay Rs.9,000 per day in case of failure to provide possession within stipulated time as directed by this Commission.

To direct OPs to make arrangements to cover the sewage canal flowing through the project & pay compensation of 20% total consideration of the apartment for loss of value due to sewage canal & further, to provide adequate car parking space.

To direct OPs to refund wrongfully charged taxes along with interest @ 18% on that amount from the date of receipt of such wrongfully levied charges.

To direct OP to pay compensation of Rs.5,00,000 & Rs.2,00,000 towards litigation costs.

CC 3416/2017

3. The brief facts of the case are that original allottee booked an apartment in OP’s project “Greenopolis” for total consideration of Rs.1,05,89,280/-. Through allotment letter dated 28.08.2012, apartment no. 1403 on 14th floor in Tower-12A having a super area of approx. 2036 Sq. Ft. was allotted to the initial buyer and then endorsed in favour of the complainant on 07.01.2014. Agreement is dated 20.06.2013. For the timely payment of the installment amount, complainant obtained a loan of Rs.50 Lakhs from ICICI Bank. As per clause 5.1 of the agreement, OP Three C Shelters Pvt. Ltd. shall complete the construction within 42 months inclusive of 6 months grace period from the date of allotment i.e. by 28.02.2016 but opposite parties failed to do so. Till date, Complainant has paid Rs.86,67,077/- to the opposite party Three C Shelters Pvt. Ltd., where last installment was paid on 17.03.2016. The gist of the prayers made in the complaint is as follows:-

To direct OP to refund Rs.86,67,077/- amount paid to OP with 18% p.a. penal interest.

To direct OP to pay compensation of Rs.5,00,000 & Rs.1,00,000 towards litigation costs.

CC 3417/2017

4. The brief facts of th

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