Andhra Pradesh

StateCommission

CC/119/2010

Dr.R.Sudhakar Rao, S/o.Late R.Chakradhar Rao, - Complainant(s)

Versus

1.M/s.Sri Venkatesh Constructions,Rep.by.its.Partner, Sri Ramkishore Baldawa, S/o.Sri.Bankatlal Bald - Opp.Party(s)

M/s.K.Venkateswarlu

17 Dec 2012

ORDER

 
Complaint Case No. CC/119/2010
 
1. Dr.R.Sudhakar Rao, S/o.Late R.Chakradhar Rao,
R/o.Flat No.201, Hiness Residency, Himayath Nagar, Road No.7, Hyderabad
...........Complainant(s)
Versus
1. 1.M/s.Sri Venkatesh Constructions,Rep.by.its.Partner, Sri Ramkishore Baldawa, S/o.Sri.Bankatlal Balddawa,
Unit No.3, 1st Floor, Ragav Ratna Tower, Chiragali lane, Adids, Hyderabad
2. 2.Ramkishore Baldawa, S/o.Sri.Bankatlal Baldwada,
Unit No.3, 1stFloor, Ragav Ratna Tower, Chiragali Lane, Abids,
Hyderabad
3. 3.Naman Baldawa, S/o.Ramkishore Baldawa,
Unit No.3, 1st Floor, Ragav Ratna Tower, Chirgali lane, Abids,
Hyderabad
A.P.
4. 4.Nameeth Baldawa, S/o.Ramkishore Baldawa,
Unit No.3, 1st Floor, Ragav Ratna Tower, Chiragali Lane, Abids
Hyderabad
............Opp.Party(s)
 
BEFORE: 
 HONABLE MR. JUSTICE HON'BLE SRI JUSTICE D. APPA RAO PRESIDENT
 HON'ABLE MS. M.SHREESHA Member
 HON'ABLE MR. S. BHUJANGA RAO MEMBER
 
PRESENT:
 
ORDER

 

 

BEFORE THE A.P.STATE CONSUMER DISPUTES REDRESSAL HYDERABAD.

                                        C.C.No.119/2010

 

Between:

1.Dr.R.Sudhakar

S/

R/

Himayathnagar, Road no.7,

Hyderabad.                                               

 

2.

S/

Employee in  World Bank,

Chennai.                                                            …Complainants

 

2nd complainant was added  as per the order 

in I.A.No.1745/2011   

 

                         And

1.M/s. Sri

rep. by  its Partner Sri  

S/  years,

Occ:Business, having its office  at unit no.3,

1st floor,

Chiragali Lane,

Hyderabad.

 

2.

S/

Occ:Business, having its office at Unit no.3,

1st floor,

Abids, Hyderabad.

 

3.Naman

Aged: 30  years,

having its office at Unit no.3, 1st floor,

Ragav

Abids, Hyderabad. 

 

4.

S/Aged 26 years,

at unit no.3, 1st floor,

Chiragali Lane,

Hyderabad.                                                  … Opposite parties

 

 

Counsel for the complainant                 :     Mr.

 Counsel for the     :       M/s.

 

 

QUORUM: THE HON’BLE JUSTICE SRI D.APPA RAO, PRESIDENT,

SMT.M.SHREESHA, HON’BLE MEMBER

AND

SRI S.BHUJANGA RAO, HON’BLE MEMBER.

 

                MONDAY, THE SEVENTEENTH DAY OF DECEMBER,                   

TWO THOUSAND TWELVE.

 

Oral   : (Per Sri

                                         ***

               

                The complainants filed the complaint under Section 17 (1  of the Consumer Protection Act,1986 seeking direction to the opposite parties to pay to the complainants  as follows:

          towards excess amount collected from the complainant @ Rs.500/-  on the total area of  1976  sq.fts.

        b). Rs.1 which is not at all payable.

        c). Rs.4  i.e. for 156 sq.fts @ Rs.2800/- .

        d). Rs.8  the value of the land for which the complainants are entitled and the  same is not included in the  undivided land mentioned in the sale deed (short fall) to an extent of 26 sq.yds. @ Rs.34  per

        e). Rs.10  the construction cost for the unfinished items incurred by the complainants.

        f). Rs.3  towards compensation on account of inconvenience and for mental agony due to the deficiency in service by the opposite parties.

        g). a sum of Rs.50  cost of the complaint        

 

                Opposite  No.1,  the partnership firm, entered into a contract of construction with the land lords Smt.   and five others, under G.P.A. cum Development Agreement    bearing  document no.1758/04  and by virtue of this, the opposite party no.1  offered the property for sale  The complainant  no.1 has  entered into  a contract with the opposite party no.1 for purchase of flat no.201, at door no.3-6-527, in Highness  Residency, Road No.7,    @ Rs.2800/- per     The complainant no.1 paid an advance of Rs.50,116/-  on 24.6.2006  as against the total  sale consideration of Rs.55,32,800/- and entered into an agreement with opposite party no.1 firm  The cost of the other amenities  described in the  agreement is Rs.5   Thus the total cost of the flat is Rs.60

 

          second opposite party  represented that the municipal authorities have  accorded the permission for construction of multi storied building and he promised that the construction  would  be carried out as per the specifications and design  explained in the development agreement and as per  permit. The time for completion of the construction  work is two years  as per the Development Agreement, but the construction was  totally delayed for the reasons attributable to the opposite parties alone  On number of occasions, the complainant  no.1 approached  opposite party no.2 and demanded for completion of the construction work and handover the flat  The complainant no.1, all the time, waited believing the representations of the opposite party that the construction work within a short time. Finally, the complainant no.1 insisted the opposite parties to complete the   work and  handover the property. But opposite   1 and 2 have miserably failed to perform their obligation in accordance with the  agreement. 

 

        The  further case of the complainants is  that complainant  no.1  has paid  an amount of Rs.40,50,116/- by April, 2008, by that time, even 50% of the work  was not attended by the opposite parties  Later, the entire construction work  was stopped by the opposite parties and the reasons for stopping the construction work  was not disclosed to the complainants   As there is no other  alternative and as major portion of the amount was  already paid, the  complainant no.1 had attended the remaining 50% of pending works by spending an amount of Rs.10   It was the obligation of the developer to complete the said works. The complainant no.1 suffered a lot, both financially and mentally, by spending huge amounts more than Rs.10  for completion of the unfinished portion of the construction  work. 

 

        Opposite parties have started   the complainant no.1 by demanding   more money. Opposite party no.2 demanded the complainant no.1  enhance the rate for    Rs.2800/- to Rs.3,300/- and started demanding the complainant no.1 to pay  more  amount  for getting the plan regularized. As the complainant no.1 has   an  amount of Rs.40,50,000/-  to the opposite parties  and has spent more than Rs.10   for completing the unfinished  works, he refused to pay the amounts demanded by opposite party no.2. The complainant no.1 was dragged to helpless situation, since the complainant no.1 did not obtain any sale  deed and the agreement of sale  was not even reduced to writing by that date and all the amounts were paid   Thereby, opposite parties 2 to 4 have coerced  the complainant no.1 and  obtained number of   Under coercion, the complainant no.1 issued the   and  569382   as if drawn  for self,   their staff have    

 

        Opposite party no.2  again demanded  the complainant no.1  to issue   in the name of his son i.e. opposite party no.3 and collected the   for Rs.4   respectively,  drawn on HDFC bank,   opposite party no.3  from complainant no.1, at the time of  permitting the first complainant  for attending the said referred unfinished works towards the security and he promised that the  But   opposite party no.2  failed to return those two   no.1 on number of white papers,  stating that he needs the same for the purpose of income tax  Under the circumstances explained supra, the complainant no.1 was forced to follow the  dictations of opposite party no.2  Opposite party no.2 coerced the complainant   in obtaining the   on white papers. The further case of the complainants is that opposite party   further demanded Rs.20    by giving pressure. As the complainant no.1 was in solitary confinement  and due to mental pressure  by obtaining a loan, made the payment of Rs.20  towards sale consideration and got the sale deed executed  in the  name of his son  as   the funding agency (HDFC Bank)  have insisted  the complainant no.1  to get the sale deed executed  in his son’s name as he is having  repaying sources for making monthly EMI, then only the required loan can be sanctioned   But the opposite parties have failed to return the   respectively drawn on HDFC bank    opposite party no.3  Opposite party no.2   that two

 

        The further case of the complainants is that the quality of construction work is  very poor and not in accordance with the specifications  mentioned in the Development Agreement  and not as per  the building permission   Opposite party no.2 has collected Rs.9   excess amount than the agreed amount by enhancing the rate per

        The further case of the complainants is that opposite party no.2 has collected Rs.1,47,044/- under the  guise of  Service Tax which is not at all payable, from the complainants and withholding  the same till now, without refunding  to the complainants till date   The same to the complainants with interest @ 24% p.a.

 

        The common areas, which is  loaded on the complainants, is 18%  and collected the amount  of rate accordingly, but the common area, which is constructed and left  for by the opposite parties, is only 10%, the opposite parties have levied and collected an amount of Rs.7,14,000/-  towards  excess common area from the complainants . The same to the complainants. 

 

        The undivided and unspecified share of land out of total extent of the complainant shall be 76   as per the prorate  of the construction, but the opposite parties have allotted  50   land  in the total land and executed  the Sale Deed. There is  a shortfall of undivided share of land to an extent of 26 sq.yds  The opposite parties are liable to refund the amount @ Rs.34  per

 

        The complainants are also entitled for refund of Rs.10   which was spent by complainant no.1,  on unfinished  items  and the opposite parties have agreed for refund of the  same  vide agreement

 

        The complainant no.1, on number of occasions,   called upon opposite parties 1 and 2 to rectify the defects, but they did not respond positively. The complainant alone attended the defects by spending an amount of Rs.3   for rectification of defects. 

 

        The further case of the complainants  is that complainant no.1 demanded in their notice dt.18.3.2010  and through his earlier letters asking the opposite parties 1 and 2 to comply with the obligations, but the opposite parties  failed to do   Even till the date of complaint, the construction work was not completed in accordance with the contract agreement  The entire construction  activity  was  stopped for more than  three years, by the opposite parties, without  notifying the reasons  for such delay, to the complainants  Thus there  deficiency in service on the part of the opposite parties, which caused much damage to the complainants, which shall be compensated under law.  

 

        Resisting the complaint, the opposite parties filed written version. While denying the fact that the complainant no.1  has purchased the property from the opposite party in the name of his son, the opposite parties contended that  has no locus   to file the complaint   The opposite parties  further contended that the complainant no.2 entered into contract  with them, but not the complainant no.1  The complainant no.1   has not entered into any   with opposite parties, as  such, the question of alleged  terms of contract are false  and imaginary.

 

        The opposite parties contended that whatever  amount received by the opposite parties, was received through   and the same is reflected in the sale deed bearing document no.1431/2009  Dt.17.6.2009 as well as the agreement of sale dt.26.11.2008  filed by the complainant. At no point of time, the opposite party no.1 received any   in cash, from the complainant  or from his son.

 

        While admitting, that the construction work  is to be completed in two years as per the development agreement, the opposite parties contended that the construction  was totally delayed  is not  the subject matter of the complaint before this Commission    development  agreement was between the builder and the  owner  and the complainants have nothing to do with the same. 

 

        The   it was categorically mentioned  that the flat is already at the finishing stage and thereafter  the sale deed was also executed in   long back and the complaint is filed after more than one year from the date of registered sale deed. At no point of time, there was any complaint by the purchasers of the flat   the delay in construction of the flat.  

 

          for flooring, cement, plastering  and other works,   the opposite parties  contended that the complainant  no.1 has not given any details of expenditure  incurred by  him, apart from that, the sale deed executed in   complainant  no.2 clearly  discloses that  complete finished flat was handed  over to the purchaser,  as such, the question of finishing work by  the complainant no.1  by incurring  huge  amount of  Rs.10   cannot be believed under any  circumstances. 

 

        Agreement entered into between the parties,  particularly  the complainant  no.2 and opposite party no.1  clearly shows the valuable  consideration of Rs.34,00,116/-  and any further amount alleged to be paid by the complainant  no.1 to the  opposite party  is not at all true and correct    As the   complainant no.1 himself has not purchased the flat, the question of his payment  does not arise  The   no.1 in collusion with his son  complainant no.2  is now claiming   that the amount was paid by him, though the amount was paid in the name of the complainant no.2. Further,  once the transaction  between the  complainant no.2  and opposite party  is  already concluded,  in view of the  execution of the sale deed,  the complainants have no right to claim  any amount afterwards  The opposite parties denied the allegation that opposite party no.2 demanded the complainant no.1 to issue   and 12.1.2009 for Rs.5   each and further that the said   and contended  that the   as alleged  in the complaint were  issued as if  they are drawn self  However, a false story   created  stating that  it was drawn by the staff of the opposite party .

 

        The opposite parties  denied the allegation  that the opposite party no.2   deposited two   complainant for a sum of Rs.4    respectively on 10.6.2009  and contended that    no.1 himself  obtained  hand loan of Rs.6,85,000/-  from the opposite  party no.3 and also executed  a promissory  note for the  said sum and thereafter  issued post dated   discharge of the said liability and since the said amount was not paid and the     issued a legal notice  u/s.138 of   calling upon the complainant to pay  the amount, failing which, the criminal complaint will be filed against him and thereafter as  a counter blast, the  present complaint is filed before this Commission   in order to harass the opposite party no.3  and to see that opposite party no.3  shall not take any steps   u/s.138 of   against complainant no.1.  The allegation that the said   but a created story. The opposite party has neither deposited the said   of the complainant  nor requested  him to pay the cash. But the fact remained that the said amount was given as a hand loan to the complainant no.1 as the complainant  no.1 required the said sum to assist his son financially for the purpose of registration expenses and other requirements    in good faith believing  the complainant no.1,   gave  hand  loan  and the complainant no.1 being a doctor himself executed  a promissory  note, accepting and acknowledged the liability at the time of receipt of the said amount  The   towards the discharge of the hand loan obtained by him in writing and the document  of which is already filed  before the criminal proceedings  initiated  against complainant no.1 herein. Therefore, the  allegations  that complainant no.1 issued   in   is false and baseless   The allegation that the opposite party no.3 did not  return   the   and further  that they have obtained  signatures  of the complainant no.1 on white papers saying  that they  need the amount for the purpose of income tax  is all a created story to avoid the liability of the above said amount of Rs.6,85,000/- .

 

        The opposite parties further contended, that the complainant  no.2 himself got the sale deed registered in his    and at the time of execution of  registered sale deed,   he has  paid   the amount of balance sale consideration of Rs.20   through bankers   drawn on HDFC Bank   The contra allegation in the complaint     denied as   false and baseless.       

 

         The other   with regard to the quality of construction and with regard  to finishing of the flat is  only the subject matter between the complainant no.2 and opposite party  and complainant no.1 has nothing to do with the same. The opposite parties further contended that the opposite party has not collected any excess amount much less Rs.9,88,000/- as alleged by the complainant  The other   of Rs.1,47,044/- alleged to have been  collected by the opposite party  on the guise  of service tax is also not correct,    work done by the opposite party no.1 on the request of  the purchaser of the flat. 

 

        With regard to the common area, the opposite parties contended  that the undivided share  of land  as claimed by the complainant   as 76   is also without any basis    the area left after road widening  leaving southern side  road and remaining area was divided  among the total flats including the commercial area and it is not  the case that the opposite party has taken any land area  from the  total area.   the land  available  was divided on the units  available in the apartment. 

 

        The opposite party has already executed the sale deed in respect of the 1976    share of land as alleged  by the complainant   The complaint is therefore liable to with costs to these opposite parties. 

 

        Subsequently, the complainant no.2 filed an application in C.C.I.A.No.1745/  seeking to   complainant no.2  in the complaint, on 17.8.2011  and the petition was allowed on 15.11.2011 and the  son of the complainant no.1 was   as complainant no.2 in the proceedings. Thereafter, the opposite parties  filed an additional written  version contending that the complainant no.2 purchased property  on 17.6.2009 and  from the date of purchase of the property till the date  of even filing of   at any point of time and   that the   petition  was filed beyond two years from the date  of sale deed, as such, the present complaint is  barred by limitation and liable to be dismissed on this ground alone.   When the complaint is barred by limitation,   relief   as prayed is  liable to be rejected. The complainant no.1  is not competent  to file the present complaint, in view of the fact that he is not a ‘consumer’ as defined under the Act  Apart from that, the complainant no.2 having satisfied with all the aspects, took possession of the property under registered sale deed in the month of  June, 2008, it is deemed   as  contract is concluded and once the contract is concluded, the complainant no.2  has even otherwise no right to go beyond the concluded contract  The complaint is therefore liable to with costs.  

 

        During the course of enquiry, in order   prove their case, both the complainants  filed evidence affidavits   and  got  marked Exs.A1 to A33. On behalf of opposite parties, opposite party   filed  evidence affidavit and got marked Exs.B1 to B6

 

        We heard   for both parties  and perused the  entire material on record, including   the written arguments filed  by  both sides.

        Now the points that arise for consideration are:

        1). Whether the complainant no.1 is not  proper and necessary party to the proceedings in question?

        2).

        3). Whether there is any deficiency in service on   part of the

        4).         

 

 

Point no.1

It is an admitted fact that the opposite party no.1   represented by its Managing Partner opposite party no.2   and  as a GPA holder of land owners  has executed an Agreement of Sale   agreeing to sell the flat no.201 at door no.3-6-527 in Highness Residency, Road No.7, Hyderabad (subject flat). It is also an admitted fact that in pursuance of the said Agreement of Sale,   the same vendors   the original of Ex.A11 Sale Deed   in

 

         The contention of the complainants is that the complainant no.1 being the father of complainant no.2 purchased the subject flat from opposite parties and obtained  the above said agreement of sale and sale deed in   has insisted  the complainant no.1, to get the sale  deed executed in his son’s name,  as he is having repaying sources, for making payment of monthly EMIs, then only the required loan will be sanctioned  As stated above, the opposite parties admitted  execution of  the above said agreement of sale and sale deed  in   a purchaser, as such, he has  no locus   in view of the fact that he is not a ‘consumer’ as defined under the Consumer Protection Act, as the complainant no.2 entered into contract with them, but not the complainant no.1.

 

        Complainant no.2 has admitted that  his father complainant no.1 purchased the subject flat in his name and that  his father paid the entire sale consideration to the opposite parties  It is the case of the complainants that  complainant no.1, from  the beginning  looking after the sale transactions  with opposite parties and paying  amounts   no.1 used to represent  complainant no.2 being his father. In view of the definition of ‘consumer’ as provided under Section 2(1)(d), the  consumer means ‘any person who buys any goods for a  consideration which has been paid or promised or partly paid and partly promised or under any system of deferred payment and includes any user of such goods other than the person who buys such  goods’. According to the  complainants,  both of them are in possession of the subject flat and  it is not their case that the complainant  no.2 alone is in possession of the subject flat  Being the user of the subject flat, along with complainant no.2, complainant no.1 falls under the definition of ‘consumer’ under Consumer Protection Act The letters addressed by the complainant no.1 to the opposite party are   on record.   Ex.A17  reply notice was  got issued  by the opposite parties to the letters addressed by the complainant no.1  From the evidence placed on record it is evident that there was correspondence between the complainant no.1  and opposite parties since the beginning of the sale transaction     It is true,   the original complaint was filed by the complainant no.1 alone, but subsequently  the complainant no.2 was  got   and both of them are prosecuting the complaint  together. Further, in Ex.A17  the reply notice got issued by the opposite parties  to the  Exs.A15 & A16 letters  addressed by the complainant no.1 to opposite party no.1, the opposite parties have not disputed the status of the complainant no.1 Under these circumstances, we are not inclined to accept the contentions of the opposite parties that the complainant   has  no locus   complaint that the complainant  is not  a consumer  within the meaning of  the Consumer Protection Act and that the complaint is not maintainable under law. 

 

Point No.2:

The   of the opposite parties is that   Petition was filed by the complainant no.2 beyond two years from the date of the sale deed, as such, the present complaint is barred by limitation and is liable to be  dismissed on this ground alone. 

       

As stated above originally  the complainant  no.1  filed  the complaint on 27.12.2010. Ex.A11 Agreement of Sale is dt.17.6.2009. The original complaint is therefore filed   within the limitation  as provided under Section 24-A  of the Consumer Protection Act. All pleas have been taken in the original complaint and the same pleas have been  adopted  by the complainant no.2  also, after he was   orders dt.15.11.2011  in CCIA.1745/2011 which was filed on 17.8.2011 No new plea has been taken after the complainant no.2 came on record  Under these circumstances, we are of the view that the complaint by limitation.

 

Point No.3:

As contended by the complainants, the time for the completion of the construction work  is two years as per the Development Agreement vide Ex.A1 entered into between the owners of the property  and the builders opposite parties 1 and 2 herein and another  On   other hand,  the contention of the opposite parties is that the construction work is totally delayed is not the  subject matter of the  present complaint and that the development  agreement was between the builder and the owners  and that the complainants  have  nothing to do with the same. It is an admitted fact that there was  an oral  agreement between the complainant  no.2  and opposite parties prior to the date of Ex.A7 agreement of sale  The opposite parties did not deny the fact   within two years the construction work to be completed and that there was delay in completion of construction work. The evidence on record   established the said facts.    

 

  At page 5,  of Agreement of Sale,  it is categorically mentioned ‘that the  purchaser, at his cost, did flooring including  polishing,   for developer  and as such, the developer shall deduct the said amount from the said cost from the balance sale consideration  Though the second opposite  party  represented that the municipal authorities have accorded permission for construction of multi storied building and that he promised that the construction would certainly be carried out as per the specifications and the design explained  in the Development Agreement and as per the MCH permission From the above admitted facts, it is evident that there is deficiency in service on the part of the opposite parties 1 and   regarding  completion of construction and delivery of possession of the flat purchased in the name of complainant no.2.

 

It is the case of the complainants that the first complainant  on number of occasions addressed  letters to opposite party no.2 to comply with the demand and  to fulfill their obligations   Exs.A13, A14 and A15 letters are some of such letters  Ex.A17  is the reply notice dt.5.1.2010 got issued by the opposite party to the complainant no.1   Complainant no.1 responded to Ex.A17   giving  Ex.A18 reply notice dt.18.3.2010. The complainant no.1, categorically demanded  in their Ex.A18 notice and their  earlier  letters asking the opposite parties 1 and 2, to comply with the obligations.  

 

Now coming  to the claims  of the complainants made in the complaint, under claim (a), the complainants claimed a sum of Rs.9,88,000/-  towards excess amount collected from the complainant  @ Rs.500/- per  1976    the interested averments in the complaint,  evidence  affidavit and additional evidence  affidavit filed by the complainants, the complainants   have not adduced any  cogent evidence to prove that the opposite parties have demanded  the complainant no.1 to enhance the rate of the sq. ft. from  Rs.2800 to 3300 or @ 500/- on the  total area of 1976    complainants as alleged  in the complaint and claimed in the prayer portion of the complaint  Therefore, it is only a mere allegation without any evidence and even agreement of sale was entered between the complainant no.2  and opposite parties on 26.11.2008 wherein the value is clearly mentioned and later the sale deed was also executed in pursuance of the agreement of sale. Therefore, the complainants failed   prove that the opposite parties have collected Rs.9,88,000/-  towards excess amount of sale consideration. The complainants   therefore not entitled to the amount of Rs.9,88,000/-.

 Under claim  no.(b)  of the prayer portion of the complaint, the complainants claimed refund of sum of Rs.1,47,044/-  the amount collected  under the guise of service tax, which is not at all payable by the complainants  In support of this claim, the complainants filed Ex.A16 letter   Ex.A19 copy of G.O. issued by Government of India, Ministry of Finance Dept. of  Revenue Central Board of Excise and Customs, New Delhi dt.29.1.2001. As seen from   the purchasers of the  residential flats are not liable to pay service tax to the Government.

 

Now it is to whether the opposite parties have collected any service tax as contended by the complainant.

 

The complainants have not filed any receipt,  to show  that the opposite parties 1 and 2 have collected service tax from the complainants  However,  in Ex.A18 reply notice got issued by the  complainant no.1  to Ex.A17 got issued by the opposite parties at   the complainant no.1 categorically   stated that the opposite parties have collected an amount of Rs.1,47,044/- by way of   Bank     i.e. opposite party no.1,  from the complainant  no.1, under the guise of service tax and that no service tax shall be paid on the sale transaction,  pertaining to dwelling  house as per law in force  and hence  the question of providing any receipt by the opposite parties to the complainant no.1 does not arise and demanded the opposite parties to refund  the amount collected by them towards service tax  to the complainant no.1.    opposite parties have not  denied this statement of the  complainant no.1 either in their written version or in the evidence affidavits filed on behalf of the opposite parties.

 

 In   reply notice got issued by the opposite parties  to the complainant no.1, at page 3,   it  is mentioned as follows:

“while so, that you have not mentioned anything  in your earlier  letter but for the first time on 22.10.09 you again raised a dispute of service tax     kept with my client and my client is under obligation to provide you receipt after making payment to the concerned department.

 

From the above contents of Ex.A17, reply notice it is clear   opposite parties have admitted the collection  of the service  tax from the complainants  and other purchasers of the flat. At page 7 and end of   of Rs.1,47,044/-  from the complainant, but contended that the  said amount was collected towards the extra work done  by opposite party no.1, on the request of purchaser of the flat  Except bald statement in written version, opposite parties have not  adduced any evidence   in  proof of their above contention  The burden is on them to prove that the   of Rs.1,47,044/- collected by them by way of   was not towards the service tax and it was collected towards the extra work done by the opposite party no.1. The opposite parties have not filed any documents in proof of their contention discharging the said burden  In view of the above facts and circumstances, it is established that the opposite   have collected Rs.1,47,044/-  from the complainants towards service tax.   

 

  As seen from Ex.A19 G.O., no service tax shall be paid on the sale transaction pertaining to dwelling house  It is an undisputed fact that the complainants purchased the subject flat for their residential purpose Under these circumstances, we have no hesitation to hold that the opposite parties 1 and 2 are liable to refund the amount of Rs.1  which was collected by them from the complainant no.1 by way of

 

Under the claim ‘c’  the complainants claimed payment of Rs.4,36,800/-  towards the value of the common area which loaded excess  than  construction i.e. for 156 sq.fts @ Rs.2800/- per    the complainants claimed a sum of Rs.8,97,000/-  towards the value of the land for which the complainant  is entitled  and the same is not  included in the undivided land mentioned in the sale deed (shortfall ) to an extent of 26   @ Rs.34,500/- per

 

In the written  arguments, the complainants have submitted that the common area which is  loaded on the complainants  is  18%  and collected the  rate of  amount accordingly,  but the common  area, which is constructed and left for, by the opposite parties is only 10%  The opposite parties have  and collected an amount of Rs.7,14,000/-, towards excess  common area, from the complainants . The same shall be refunded to the complainants  The complainants further submitted that undivided and unspecified share of the land out of the total extent of the complainants shall be  76    Thus, there is shortfall of undivided   share of land to an extent   refund the amount @ Rs.34500/-  per

 

The opposite parties have denied the above two claims of the complainants as  also denied the above submissions of the  complainants. 

 

As seen from Ex.A7 and A20 the copies   Agreement of Sale     plinth area admeasuring 1976    undivided share of land  admeasuring  50   either vendee or vendor, whereas  all remaining pages in Ex.A7 and all pages in Ex.A20  bear the signature of complainant no.2  However, there is no difference regarding the measurement of the flat and area  mentioned in page 4 of Ex.A7 and page 4 of Ex.A20, though  there is variation regarding the total sale consideration and the part of the consideration paid and the balance of sale consideration   Therefore the discrepancy regarding the extent of the flat   and common area and undivided area  mentioned  in  page 4 of Ex.A7 and page 4 of Ex.A20   is not relevant for the purpose of deciding  these two claims which are concerned with the measurement   of the flat,  common area and undivided  land. 

 

Further, the complainant no.2 having entered into an agreement of sale in the year 2008 and thereafter got executed the sale deed in his   on 17.6.2009, the complainant cannot say that he was not aware of measurement of the flat. Suffice to mention here, that the complainant is bound by the terms of the agreement,    which clearly states about the measurement of the flat and undivided land in recital as well as in the schedule of the property  The complainants have not filed any document to show, whether the actual measurement  was taken by the complainant  by an engineer or architect or else  any expert informing the opposite parties with regard to the calculation of undivided share of land  and the area of  flat including common area and car parking   Further, once the complainant made payments towards the full sale consideration  relating to the flat, which he has taken  possession, then the complainant cannot claim that there is shortage of area of the  flat allotted to him.

 

In view of the above facts and circumstances, the complainants have failed to prove the above two claims. Therefore, the complainants are not entitled to these two claims. 

 

Under Claim ‘e’     the complaint,  the complainants have claimed Rs.10   towards construction of the unfinished  items incurred by the complainant. The contention of the complainants is  that they have paid Rs.40,50,116/- by April, 2008, by which time,   the entire construction work was stopped by the opposite parties and the reasons for stopping the construction work was not disclosed to the complainants     As there is no other   and as major portion of the amount was already paid, the complainant no.1 had attended the remaining 50%  of the pending works by spending an amount of Rs.10   to get that amount from the opposite parties. 

 

In   his cost did flooring, including polishing,   From the above  recital in Ex.A7, it is obvious  that the opposite parties have admitted about not completing the construction of the flat  and about  the completion of the remaining works by the complainants and agreed to deduct the amount spent by the complainants for completion of the remaining construction, from the balance sale consideration at the time of  execution of sale deed  Ex.A11 does not show that the amount spent by the complainants for completion of the construction from the balance sale consideration at the time of execution of registered sale deed. 

 

Further, in the plan attached to the registered  sale deed, it is mentioned that semi finished flat no.201 was sold  The contention of the opposite parties is that inadvertently, the word ‘semi finished’ is   in the plan attached  to the registered sale deed  and that the entire construction was completed even before the agreement  of sale.

 

In order to prove that the complainants have incurred a sum of Rs.10   completion of construction of unfinished flat, they have filed Exs.A21 to A29  bills   Exs.A21 to A29 bills pertaining to the cost incurred for flooring , sanitary and taps hardware , glass works, painting, electrical,  doors etc   for a total sum of Rs.13,30,608/-. Almost all the  bills relate to the period prior to the agreement of sale and only a  few bills relate to the period subsequent to the sale deed  Ex.A30 is the letter addressed by the flat owners to   builder  i.e. opposite party no.1 listing works which are kept incomplete. The opposite parties have not disputed receipt of  Ex.A30 letter  dt.25.6.2010  addressed by  some of the flat purchasers including the complainantno.1 herein, to the opposite party no.1 i.e. the builder listing out the works, which are kept incomplete  Admittedly they did not respond to Ex.A30 letter  From Ex.A30 letter it is  obvious  that even by 25.6.2010 i.e. subsequent to the date of Ex.A11 sale deed i.e. 17.6.2009 there were pending works to be completed by the opposite party no.1 builder  In  view of the above facts and circumstances, we are of the view that the opposite parties are liable to refund the amount spent by the complainant prior to the agreement of sale and also after execution of the registered sale deed.       

 

Under Claim ‘f’ the complainants claimed Rs.3   towards the compensation on account of inconvenience and for mental agony due to the deficiency in service by the opposite parties   and  under claim ‘g’ the complainants claimed a sum of Rs.50,000/-  towards the costs of the complaint  Having regard to the facts and circumstances of the case and to meet the ends of justice, it is reasonable to direct the opposite parties to pay a sum of Rs.25000/- towards the compensation  and Rs.5000/- towards costs of the complaint. 

 

        The complainants have alleged that the  opposite parties have  demanded and collected  some  at the time of handing over  the flat  for  attending the unfinished works towards the security, promising  that  the      but the second opposite party failed to return those    demands. The opposite parties   denied the same. They have taken  some other pleas but no relief  is sought for regarding the  returning of the  amount under the alleged    Hence, we have not considered the contentions   counter contentions of both the parties regarding the other aspects than the aspects covered by the reliefs sought for  in the complaint.  

 

In the result, the complaint is allowed in part directing the opposite parties to pay a sum of Rs.1,47,044/- that was collected by the opposite parties under the guise of service tax and to pay sum of Rs.13,30,608/- towards the expenses incurred by the complainants  for  completing the unfinished works of the flat with interest at 9% p.a. from the date of Ex.A16   The remaining claims of the complainants . 

 

The opposite parties   are directed to pay  a sum of Rs.5000/-  to the complainants towards costs of the complaint  The opposite parties are directed to comply with the order within six weeks from the date   this order . 

 

                                                                PRESIDENT

 

                                                                MEMBER

 

                                                                MEMBER

Pm*                                                          Dt. 17.12.2012        

 

 

 

APPENDIX OF EVIDENCE

                                                     Witnesses examined

For the nil                         For the                           

Evidence affidavit of complainant filed

Affidavit evidence of   filed

 Exhibits marked on behalf of the complainants

Ex  A-1 :Development agreement cum GPA Dt. 21.6.2004

Ex A-  :Legal opinion of

Ex A-  :Supplement development agreement Dt. 22.1.2006.

Ex A-4 : Retirement deed of    

Ex A-5 : dt.14.6.2008 addressed to OP No.2 by complainant

Ex A- Account details  prepared by OP2

Ex A- of sale 

Ex A-8: Statement showing   made.

Ex A-9 IDBI Bank for Rs. 5

Ex A-10:Cheque  issued by  the   of IDBI Bank for Rs. 5 Ex A-11 

Ex A-12

Ex A-13  no.2

Ex A-14    .

Ex A-15  to  OP1 by complainant no.1 Ex A-16  to  OP1 by complainant

Ex A-17: Reply    got issued by OP1 to

Ex A-18:reg. reply   to  

Ex A-19

               Revenue, Central Board of   and Customs.  

Ex A-20 

Ex A-21

Ex A-22  (Ex A-23

Ex A-24

Ex A-25

Ex A-26 to glass works ( for windows and doors 4 Nos.)

 

Ex A-27Ex A-28

Ex A-29

Ex A-30 by complainants  along with other flat owners.

Ex A-31

Ex A-32

Ex A-33:Lr. issued by complainant to Ops

For the opposite

Ex B-1 :  Copy of   memo

Ex B-2 : Copy    memo

Ex B-3 : letter issued by  respondent No.3

Ex B-4 :  Copy of legal notice dt.21.12.2010   O.P.No.3 to Ex B- copy of acknowledgment

Ex B-6

 

                                                                        PRESIDENT

 

                                                                        MEMBER

 

                                                                        MEMBER

Pm*                                                          Dt. 17.12.2012

 

 

 
 
[HONABLE MR. JUSTICE HON'BLE SRI JUSTICE D. APPA RAO]
PRESIDENT
 
[HON'ABLE MS. M.SHREESHA]
Member
 
[HON'ABLE MR. S. BHUJANGA RAO]
MEMBER

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