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2022 Supreme(Online)(NCDRC) 1277

NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION
MR. JUSTICE RAM SURAT RAM MAURYA, PRESIDING MEMBER, DR. INDER JIT SINGH, MEMBER
SHREE SAPTA CO-OP HOUSING SOCIETY – Appellant
Versus
M/S. RAJA CONSTRUCTION COMPANY & 2 ORS. – Respondent
CONSUMER CASE NO. 236 OF 2018



Advocates:
For the Complainants: Mr. Anand Patwardhan, Mr. Ravi Shetty, Mr. B.S. Sharma
For the Respondents: Mr. Shree Prakash Sinha, Mr. Rakesh Mishra, Mr. Rishabh Gupta, Mr. Devdas Sawant

Developers are jointly liable for failure to meet contractual obligations related to timely completion and delivery of amenities, causing distress to complainants.

Headnote:(A) Relevant laws include Maharashtra Co-operative Societies Act, 1960 and Indian Partnership Act, 1932. Complainant sought multiple directions against builders for failure to deliver promised amenities and timely possession, citing breaches of agreement. Obligations regarding obtaining Occupancy and Completion Certificates and liquidated damages were central.

(B) Legal principles emphasize the liability of developers to adhere strictly to agreed terms including timely completion, delivery standards, and compensation for delays.

(C) Facts highlight redevelopment agreement issues, tenant pressures, delayed property registrations, and agreements with society members.

(D) Court found the developers jointly and severally liable for failure to meet obligations as per the redevelopment agreement. (E) Issues included the duty to provide amenities and the impact of payment delays. (F) Findings revealed contractual obligations remain unfulfilled despite a lengthy timeline, causing substantial financial and emotional distress to society members. (G)

Result: Complaint allowed with specific directions for developers to fulfill obligations.

Table of Content
1. consumer complaint filed for redevelopment issues. (Para 1 , 2 , 3)
2. developers failed in obligations to deliver promised amenities. (Para 4 , 5 , 6)
3. court addressed issues of developer liability and impact on residents. (Para 8 , 9 , 10)
4. judgment concluded with directives for fulfilling contractual obligations. (Para 11 , 12 , 13 , 14)
ORDER

DR.INDER JIT SINGH, MEMBER

1. The present Consumer Complaint (CC) has been filed by the Complainant against the opposite party as detailed above, inter aila praying for:-

(i) to direct the OPs to obtain Occupation Certificate and Completion Certificate within time bound period and also provide proper regular water connection, failing which the OPs be ordered and directed to pay an amount of Rs.1,000/- per day of delay from the time limit.

(ii) to direct the OPs to pay an amount of Rs.15,15,61,090/- towards rent compensation, corpus fund of existing members and other dues as per statement exhibited prepared as per clause 6(iv) of the redevelopment agreement dated 16.05.2010 along with interest @12% from December 2017 till realization.

(iii) to direct the OPs jointly and severally to pay an amount of Rs.1,95,00,000/- towards liquidated damages as per clause 6(iv) (e) of the redevelopment agreement dated 16.05.2010 along with interest @ 12% from December 2017 till realization.

(iv) to direct the OPs to pay an amount of Rs.72,76,876/- towards property tax to the concerned Municipal Authority or reimburse the same if paid by the complainant society and also directed to pay the property tax till they obtain OC from the concerned authority.

(v) to direct the OPs to reimburse an amount of Rs.94,891/- towards water charges which the complainant society has to to pay extra in absence of the OC.

(vi) to direct the OPs to pay Rs.1,46,896/- towards outstanding maintenance dues for unsold flats.

(vii) to pay an amount of Rs.1,50,000/- towards the corpus fund for three unsold flats.

(viii) to direct the OPs to clear the bill dated 24.05.2017, issued by Project Manager S.B. Associates for an amount of Rs.5,00,000/-.

(ix) to direct the OPs to complete the Fire Fighting Installations and procure the fire department NOC.

(x) to direct the OPs to reimburse amount of Rs.93,29,055.00 towards TDS deducted by the OPs and not paid to the concerned authority.

(xi) to pay compensation of Rs.20,000/- to each member for incessant mental and physical harassment.

(xii) to pay Rs.5,00,000/- towards legal cost and also some other prayers.

2. Notice was issued to the opposite party on 29.08.2018 giving them 30 days’ time to file their written statement.

3. It is averred/stated in the complaint that:-

i) That the Complainant is a Co-operative Housing Society, registered as “Housing Society” under the Maharashtra Co-operative Societies Act, 1960 for itself and in common interest of its 126 members. The complaint is filed at the hands of It’s Chairman Mr. Gev. R. Vaid and the Hon.Secretary, Mr. Ravindra N. Shetty, who are duly authorised and being personally aware of the facts, are authorised to file the present complaint and to make submissions on behalf of the complainant society.

ii) OP-1 is a Partnership firm registered under the Indian Partnership Act, 1932 . The OPs -2 & 3 are the Partners, who are conducting the business of the OP-1 firm and are therefore, responsible and liable for the business activities and for the financial and administrative and management decisions and are made a party jointly with the OP-1 firm. The complainant society is situated at City Survey No. 33/12, Chinchavli, Taluka Borivali, in Bombay suburban district, admeasuring about 5937 sq. mtrs. and on the said property there are seven buildings known as R1 to R7 consisting of 126 flats which were in use and occupation of the members of the complainant society. Since the said seven buildings were in dilapidated condition, hence the complainant society decided to redevelop the said property and accordingly called for tenders through adve

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