Judicial Analysis Court Copy Headnote Facts Arguments Court observation

2020 Supreme(Online)(NCDRC) 955

NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION
Mr. Prem Narain, Presiding Member
SANJAY GUPTA – Appellant
Versus
THREE C SHELTERS PVT. LTD. – Respondent
CONSUMER CASE NO. 3814 OF 2017 | CONSUMER CASE NO. 2011 OF 2017 | CONSUMER CASE NO. 218 OF 2018 | CONSUMER CASE NO. 2692 OF 2017 | CONSUMER CASE NO. 3563 OF 2017 | CONSUMER CASE NO. 3811 OF 2017 | CONSUMER CASE NO. 3812 OF 2017 | CONSUMER CASE NO. 3817 OF 2017 | CONSUMER CASE NO. 546 OF 2018 | CONSUMER CASE NO. 562 OF 2018

Advocates:
For the Appellants/Petitioners: Mr Aditya Parolia, Mr Zahid Hussain, Ms Harshita Chauhan, Mr. Nithin Chandran, Ms. Aditi Sinha
For the Respondents: Ms Ruchika Jain, Mr Anurag, Proxy Counsel for Mr Pankaj Vivek

The court established that consumers are entitled to refunds with interest when developers fail to deliver possession within the agreed timeframe, reinforcing obligations under the Consumer Protection Act.

Headnote:(A) Consumer Protection Act, 1986 - Sections 14(i)(d), 55 - Refund and delivery in real estate - Complainants booked apartments but possession was delayed beyond grace period; OPs failed to fulfill contractual obligations - Duty to refund amounts paid with interest established. (Paras 3, 20, 21, 27)

(B) Burden of Proof - Executive delay in handing over possession shifts obligation for remedy to OP; complainants not liable for OPs' failure to deliver timely possession or for late payments. (Paras 19, 24)

Facts of the case:
Various consumers booked apartments with stipulated deposits and faced significant delays in possession, beyond the provided grace periods, seeking refunds with interest and compensation for litigation costs.

Findings of Court:
Ordered refunds of substantial amounts along with 9% p.a. interest from the respective deposit dates, with no penalties for the complainants due to the OPs' inability to deliver possession.

Issues: Whether the complainants are entitled to a refund and if the OPs can claim forfeiture for delayed payments when they also failed to deliver possession as agreed.

Ratio Decidendi: The delay in delivery of possession by the OPs, coupled with the failure of the project completion, constitutes a breach, warranting refunds and limiting OPs' defenses regarding purchaser defaults.

Result: Complaints allowed.

Table of Content
1. deficiency in service due to delayed possession. (Para 1 , 2 , 3 , 4 , 5 , 6 , 7 , 8 , 9 , 10 , 11)
2. arguments presented by both parties on refund and responsibility. (Para 12 , 13 , 14 , 15 , 16 , 17 , 18 , 19)
3. court's examination of contract law and responsibility for delays. (Para 20 , 21 , 22 , 23 , 24 , 25 , 26)
4. final judgment ordering refunds and compensation. (Para 27)

ORDER

These consumer complaints have been filed by the complainants Sanjay Gupta & ors. as allotttes of the project “Greenopolis” situated in Sector 89, Gurgaon alleging deficiency in service on the part of the opposite parties Three C Shelters Pvt. Ltd. & anr. As the complaints have been filed with more or less similar prayer against the same opposite parties, therefore, they are being considered together and are being decided together.

CC 3814/2017

2. The brief facts of the case are that the original allottee booked an Apartment in OP’s project for total consideration of Rs.87,16,800/-. Through allotment letter dated 16.08.2012 Apartment no.1102 on 11^th floor in Tower 11 was allotted and later on 24.08.2015, the same was endorsed in favour of complainant. The flat buyer’s agreement was executed between the parties on 13.06.2013 issued to initial buyer was later on endorsed in favour of complainant on 24.08.2015. Opposite parties failed to deliver the possession in 42 months inclusive of 6 months grace period i.e. by 16.02.2016. Till date, complainant has paid Rs.75,96,776/- to opposite parties where last instalment was paid on 05.04.2016. The main prayers made in the complaint are as under:-

To direct OP to refund Rs.75,96,776 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 3817/2017

3. The brief facts of the case are that Complainant booked an Apartment in OP’s project for total consideration of Rs.1,07,92,880/-. Through allotment letter dated 20.09.2012 Apartment no.701 on 7^th floor in Tower 23 was allotted. The flat buyer’s agreement was executed between the parties on 09.5.2013. Opposite parties failed to deliver the possession in 42 months inclusive of 6 months grace period i.e. by 20.03.2016. Till date, complainant has paid Rs.95,01,749/- to opposite parties where last instalment was paid on 05.04.2016. The main prayers made in the complaint are as under:-

To direct OP to refund Rs.95,01,749/- 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 218/2018

4. The brief facts of the case are that the Complainants booked an Apartment in OP’s project for total consideration of Rs.81,35,800/-. Through allotment letter dated 30.08.2012 Apartment no.12A03 on 13^th floor in Tower 8 was allotted. The flat buyer’s agreement was executed between the parties on 22.05.2013. Opposite parties failed to deliver the possession in 42 months inclusive of 6 months grace period i.e. by 02.03.2016. Till date, complainants have paid Rs.73,55,651/- to opposite parties where last instalment was paid on 14.11.2015. The main prayers made in the complaint are as under:-

To direct OP to refund Rs.73,55,651 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 546/2018

5. The brief facts of the case are that the original allottee booked an Apartment in OP’s project for total consideration of Rs.1,03,85,680/-. Through allotment letter dated 30.08.2012 Apartment no.103 on 1st floor in Tower 12A was allotted to initial buyer & later on 21.12.2012 the same was endorsed in favour of complainant. The flat buyer’s agreement was executed between the parties on 22.05.2013. Opposite parties failed to deliver the possession in 42 months inclusive of 6 months grace period i.e. by 02.03.2016. Till date, complainant has paid Rs.85,72,435/- to opposite parties where last instalment was paid on 31.03.2016. The main prayers ma

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