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2020 Supreme(Online)(NCDRC) 222

NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION
V.K. JAIN, PRESIDING MEMBER
PAVANKUMAR ATMARAM LIHLA & ANR. – Appellant
Versus
MILESTONE ENTERPRISE & ANR. – Respondent
REVISION PETITION NO. 1972 OF 2018 | REVISION PETITION NO. 1524 OF 2019 | REVISION PETITION NO. 1525 OF 2019 | REVISION PETITION NO. 1526 OF 2019 | REVISION PETITION NO. 1527 OF 2019 | REVISION PETITION NO. 1528 OF 2019 | REVISION PETITION NO. 1529 OF 2019 | REVISION PETITION NO. 1530 OF 2019 | REVISION PETITION NO. 1531 OF 2019 | REVISION PETITION NO. 1532 OF 2019 | REVISION PETITION NO. 1533 OF 2019 | REVISION PETITION NO. 1534 OF 2019 | REVISION PETITION NO. 1535 OF 2019 | REVISION PETITION NO. 1536 OF 2019 | REVISION PETITION NO. 1537 OF 2019 | REVISION PETITION NO. 1538 OF 2019 | REVISION PETITION NO. 1539 OF 2019 | REVISION PETITION NO. 1540 OF 2019 | REVISION PETITION NO. 1541 OF 2019 | REVISION PETITION NO. 1542 OF 2019 | REVISION PETITION NO. 1543 OF 2019 | REVISION PETITION NO. 1544 OF 2019 | REVISION PETITION NO. 1545 OF 2019 | REVISION PETITION NO. 1546 OF 2019 | REVISION PETITION NO. 1547 OF 2019 | REVISION PETITION NO. 1548 OF 2019 | REVISION PETITION NO. 1549 OF 2019 | REVISION PETITION NO. 1550 OF 2019 | REVISION PETITION NO. 1551 OF 2019 | REVISION PETITION NO. 1552 OF 2019 | REVISION PETITION NO. 1553 OF 2019 | REVISION PETITION NO. 1554 OF 2019 | REVISION PETITION NO. 1555 OF 2019 | REVISION PETITION NO. 1556 OF 2019 | REVISION PETITION NO. 1557 OF 2019 | REVISION PETITION NO. 1558 OF 2019 | REVISION PETITION NO. 1559 OF 2019 | REVISION PETITION NO. 1560 OF 2019 | REVISION PETITION NO. 1561 OF 2019 | REVISION PETITION NO. 1562 OF 2019 | REVISION PETITION NO. 1563 OF 2019 | REVISION PETITION NO. 1564 OF 2019 | REVISION PETITION NO. 1565 OF 2019 | REVISION PETITION NO. 1566 OF 2019 | REVISION PETITION NO. 1567 OF 2019 | REVISION PETITION NO. 1568 OF 2019 | REVISION PETITION NO. 1569 OF 2019 | REVISION PETITION NO. 1973 OF 2018 | REVISION PETITION NO. 1974 OF 2018 | REVISION PETITION NO. 1975 OF 2018 | REVISION PETITION NO. 1976 OF 2018 | REVISION PETITION NO. 1977 OF 2018 | REVISION PETITION NO. 1978 OF 2018 | REVISION PETITION NO. 1979 OF 2018 | REVISION PETITION NO. 1980 OF 2018 | REVISION PETITION NO. 1981 OF 2018 | REVISION PETITION NO. 1982 OF 2018 | REVISION PETITION NO. 1983 OF 2018 | REVISION PETITION NO. 1984 OF 2018 | REVISION PETITION NO. 1985 OF 2018 | REVISION PETITION NO. 1986 OF 2018 | REVISION PETITION NO. 1987 OF 2018 | REVISION PETITION NO. 1988 OF 2018 | REVISION PETITION NO. 1989 OF 2018 | REVISION PETITION NO. 1990 OF 2018 | REVISION PETITION NO. 1991 OF 2018 | REVISION PETITION NO. 1992 OF 2018 | REVISION PETITION NO. 1993 OF 2018 | REVISION PETITION NO. 1994 OF 2018



Advocates:
For the Appellants/Petitioners:Mr. H. D. Thanvi, Advocate, Mr. Shrey Yadav, Advocate, Mr. A.S. Bule, Advocate
For the Respondents:Mr. Varshal M. Pancholi, Advocate, Mr. A.S. Bule, Advocate

Consumer protection laws mandate adherence to promised amenities in sales agreements, and unilateral changes by builders without consent are impermissible.

Headnote:(A) Consumer Protection Act, 2019 - Sections 12(1)(a), 12(1)(c), 17 - Deficiencies in services - Builder failed to provide promised facilities and adequate parking in residential complex - Complaints filed by allottees upheld - Builder directed to pay compensations for deficiencies - Jurisdiction issues discussed but ultimately not upheld due to procedural missteps. (Paras 2, 4, 5, 8, 14, 17)

(B) Contractual Obligations - Compliance with promises made in sales brochure is mandatory - Builder cannot make unilateral changes without consent of consumers - Compensation awarded for failure to uphold contract terms. (Paras 10, 14)

Facts of the case:
Multiple consumers filed complaints against the Builder for not providing promised amenities such as adequate parking and facility amenities post delivery of flats. The Builder’s claims of compliance were disputed by consumers based on actual conditions observed in the complex.

Findings of Court:
Court found several deficiencies in the Builder's services and awarded compensatory damages based on lack of promised infrastructure and facilities as per agreements made during sale.

Issues: The primary issues revolved around contractual failures of the Builder regarding amenities and parking space.

Ratio Decidendi: The court asserted that the Builder must adhere to terms stipulated in the sales brochure, and any modifications require consumer consent, establishing that consumer protection laws support individual complaints regardless of the unit’s value.

Result: Revision petitions upheld; Builder to compensate consumers for deficiencies within specified timelines.

Table of Content
1. introduction to revision petitions. (Para 1)
2. overview of defects in service provided by builder. (Para 2 , 3)
3. compensation directives from the district forum. (Para 4 , 5)
4. legal arguments addressing jurisdiction issues. (Para 6 , 8)
5. court's ruling on jurisdiction and service issues. (Para 7 , 9 , 11)
6. jurisdictional challenges raised by the builder were rejected. (Para 10)
7. court's decision on compensation for deficiencies. (Para 12 , 13 , 14)
8. final orders by the court. (Para 15 , 17)
JUSTICE V.K.JAIN (ORAL)

Condonation of delay

Heard. With the consent of the learned counsel for the complainants, the delay of 350 days in filing the Revision Petition Nos. 1524 to 1568 of 2019 is condoned subject to payment of Rs.10,000/- as cost in each revision petition to the complainants, within two weeks from today.

Revision Petitions

2. M/s Milestone Enterprise hereinafter referred to as the Builder, which is a partnership firm advertised for sale of residential apartments in a project, namely, Swastic Milestone which it proposed to construct in District Surat of Gujarat. The complainants in these matters booked residential apartments in the aforesaid project and possession of the apartments has already been delivered to them. The sale deeds in their favour were also executed. After taking possession of the apartments and execution of the sale deeds in their favour, they approached the concerned District Forum by way of separate consumer complaints alleging several deficiencies on the part of the Builder in rendering services to them. The deficiencies alleged by the complainants included the following:-

The actual carpet area of each flat was only 1006 sq.ft. though it was stated by the Builder to be 1020 sq.ft.

The Builder was required to provide parking for one car and two scooters to each of the allottees but the parking provided by it wasgrossly inadequate.

The Builder was required to provide facilities such as steam bath, Jacuzzi bath, gym hall, billiard room and indoor games, table tennis, etc.which it did not provide in the complex.

The lift provided by the Builder was of inferior quality.

24 hours sweet water was not provided.

The material used on the roads was of inferior quality and the boundary wall was constructed using inferior material and had developed cracks.









3. The complaint was resisted by the Builder which interalia stated in its written version that all the amenities had been provided in the complex and only thereafter the BUC had been issued by the Municipal Corporation. It was also claimed that adequate parking had been provided to the allottees. As regards sport facilities, it was stated in the written version of the Builder that some allottees sought children play area in place of the aforesaid amenities and their request was accepted by the Builder which provided children play area in place of those amenities. It was also claimed that the complex was being maintained by the society of the allottees for last three years and the Builder therefore was not responsible for lack of proper maintenance.

4. The District Forum allowed the consumer complaints with the following directions to the Builder:-

(2) The opponent is directed to provide facilities like steam bath, Jacuzzi bath, jim hall, billiards room, indoor game, table-tennis, carrom board, chess etc. as per mentioned in the brochure to the flat holders of 'A/2' and 'A/3' building. Opponent is also directed to provide the above facilities in the open place of COP shown in the approved plan.

(3) The opponent is directed to initiate proceedings by submitting necessary plan regarding this before the relevant authority within one month from the date of this order and get approval. And has to complete such construction within two years from the date of order.

(4) The opponent due to his fault if does not complete the construction within two years then opponent do pay monthly Rs.5,000/- (in words rupees five thousand) to the complainant/flat holder for th

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