A co-promisor in consumer transactions remains liable to refund amounts despite the ongoing insolvency of a related party, as governed by consumer protection laws.

1. Heard Mr. Krishnan Venugopal, Senior Advocate, assisted by Mr. Sumeet Sharma, Advocate, for the appellant and Mr. Sankalp Mehrotra, Advocate, for respondents-1 to 3, Mr. Mayank Singh, Advocate, for respondent-4. Mr. Aditya Parolia, Advocate argued as an intervener, on legal issue.

2. Jaiprakash Associates Limited (opposite parties-1 & 2) has filed above appeal from the order of State Consumer Disputes Redressal Commission, Uttar Pradesh, dated 12.07.2019, passed in CC/66/2017, partly allowing the complaint with cost of Rs.10000/- and directing the appellant to return Rs.4578008/- with interest @18% per annum from the date of respective deposit till the date of actual payment, to the complainants.

3. The office has reported 4 days delay in filing the appeal. The appellant has filed IA/16782/2019, for condonation of delay. Cause shown is sufficient. The delay in filing the appeal is condoned.

4. D.N. Khurana, Mrs. Prem Khurana and Konark Khurana (respondents-1 to 3) filed CC/66/2017 for directing Jaiprakash Associate Limited and Jaypee Infratech Limited (opposite parties-1 to 2) (i) to refund Rs.4578008/- with interest @24% per annum, from the date of respective deposits till the date of refund,, (ii) to pay Rs.5/- lacs as compensation for medical treatment, Rs.21000/-, per month from 27.08.2013 till the date of refund and Rs.15/- lacs as compensation for mental agony and harassment, (iii) to pay Rs.25000/- as the cost of litigation; and (iv) any other relief, which is deemed fit and proper in the facts and circumstance of the case.

5. The complainants stated that Jaiprakash Associates Limited (the appellant) and Jaypee Infratech Limited (respondent-4) (hereinafter referred to as the builders) were companies, registered under Companies Act, 1956 and engaged in the business of developing and constructing group housing project. They launched a group housing project in the name of “Kasa Isles” at Jaypee Greens, Noida and made wide publicity in the year 2010. Mr. Kuldeep Verma and Ms. Simmi Verma applied for a flat and deposited the required money on 30.07.2010. The builders provisionally allotted Unit No.-KSI 11-1603 (super area 1570 sq.ft., total consideration of Rs.4702280/-, on 27.08.2010 to them. Under the allotment letter dated 27.08.2010, the builders assured to deliver possession within 36 months from the date of allotment with grace period of six months. Mr. Kuldeep Verma and Ms. Simmi Verma transferred the aforesaid unit to the complainants with prior approval of the builders. The complainants paid Rs.4569276/- and Rs.121154/- towards interest upto 25.05.2013. The builders provisionally allotted Unit No.-KSI 11-1603 (super area 1570 sq.ft.), to the complainants on 25.05.2013, in which payment of Rs.4569276/- has been acknowledged. The period of 36 months expired on 27.08.2013 and grace period of 180 days as given under Clause-7.2 of Standard Terms and Condition also expired on 27.02.2014. The complainant enquired about the date of delivery of possession. The builders, vide email informed that possession would be offered till December, 2016. The complainant-1 was aged about 77 years and booked the flat for peaceful living of his family in it. D.N. Khurana suffered with heart attack on 15.10.2015 and has undergone through surgery. He took a rented accommodation on the rent of Rs.21000/- per month, which was a huge burden upon him. The complainants gave a legal notice dated 21.11.2016 to the builders for delivery possession but the builders did not respond. Then the complaint was filed, claiming deficiency in service.

6. The appellant and Jaypee Infratech Limited (respondent-4) filed its joint written reply in the complaint, in which, material facts relating booking/ allotment of the flat and pa