ORDER

BEFORE:

HON’BLE MR. SUBHASH CHANDRA, PRESIDING MEMBER

HON’BLE DR. SADHNA SHANKER, MEMBER

For the Appellant                Mr Sanjoy K Ghosh, Advocate (VC) 

For the Respondent              Mr Bharat Swaroop Sharma, Advocates

ORDER

PER SUBHASH CHANDRA

1.      This appeal under Section 19 the Consumer Protection Act, 1986 (in short, the “Act”) is directed against the order dated 15.03.2018 of the West Bengal State Consumer Disputes Redressal Commission, Kolkata in Complaint no. 419 of 2014 allowing the complaint and directing the appellants to jointly and severally pay the respondent Rs 13,87,645/- with interest @ 8% p.a. from 15.06.2008 till realization and to handover possession letter, authenticated copy of the sanctioned plan and Completion Certificate of the subject premises within 30 days along with litigation expenses of Rs 10,000/- within 30 days failing which with interest @ 8% p.a. till date of payment.   

2.     We have heard the learned counsel for the parties and perused the records. IA 10852 of 2023 dated 29.08.2023 seeking to bring on record the legal heirs of the respondent, Smt Rama Devi, who had since expired, was allowed on 13.09.2023 and the amended Memo of Parties taken on record.

3.     The relevant facts of the case, in brief, are that the late respondent was the owner of premises at 133, New Santoshpur, PS Purba Jadavpur, Kolkata 700075 (District South 24 Parganas) within the local limits of Kolkata Municipal Corporation (KMC). On 05.07.2006 a Development Agreement was entered into by her with the appellants regarding construction of a ground plus 3 storied residential building comprising 8 flats with car parking spaces to be executed by the appellant who is a builder. Flat No. F3 admeasuring 710.90 sq ft along with one car parking space was allotted to the respondent. The respondent was entitled to 40% of the sanctioned area or 2436.60 sq ft inclusive of Flat F3 and the balance of 1742.70 sq ft to be monetized at the average sale price of the other flats and to be provided the Completion and Occupancy Certificates from KMC. In the event of failure to do so, the respondent was entitled to Rs 10,000/- per month. The respondent executed a General Power of Attorney (GPA) in favour of the appellants to enter into an Agreement for Sale in respect of 1742 sq ft and to deposit the sale proceeds in her bank account. Construction was to be completed within 18 months from the date of the sanctioned plan which was obtained on 16.12.2006, i.e. by 15.06.2008. According to the respondent the project was delayed by the appellants and therefore a consumer complaint was filed before the State Commission on 27.11.2008 alleging deficiency in service and unfair trade practice. This complaint came to be decided on contest in favour of the respondent as per the impugned order which is the subject of this first appeal filed by the appellants.

4.      On behalf of the appellant it was submitted that a Development Agreement was entered into between the parties and a sum of Rs 1,25,000/- was paid to the respondent by cheque and cash (Rs 25,000/-) on 04.11.2005 and 0.07.2006 when a Memorandum of Understanding was signed. Thereafter Rs 10,00,000/- on 17.12.2008 and Rs 5,00,000/- on 31.03.2009 was paid by the appellants to the respondent. A GPA was executed in favour of Susanta Mondal, a partner of the appellants. The appellants obtained a sanctioned building plan from the KMC vide BP No. 572/XII/06-07 dated 16.12.2006 and executed the project for which the KMC issued a Completion Certificate dated 27.11.2008. Appellants sent the same with a Possession letter dated 01.12.2008 in respect of Flat F3 to the respondent who requested for some additional works as ‘up-gradation’ and thereafter took possession on 26.07.2009. As the payment for the additional works was not made by the respondents, appellants issued a letter dated 01.10.2009 for the same which was replied to by respondent incorporating various a