BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION AT BANGALORE (URBAN)

DATED 23^RD DAY OF MAY 2024

ORDER

SMT.M.SHOBHA, PRESIDENT

1. The complaint has been filed under Section 35 of C.P.Act (hereinafter referred as an Act) against the OP for the following reliefs against the OP:-

1. Direct OP to refund of cost of residential site along with interest from the date of payments till today in a sum of Rs.24,92,940/-.
2. Direct OP to pay future interest from the date of filing this complaint till the actual date of payment of Rs.24,92,940/- at the rate of 18% compounded interest per annum from the date of filing this complaint till the actual date of payment.
3. Direct OP to reimburse cheque return charges in a sum of Rs.1,500/-.
4. Direct the OP to pay Rs.60,00,000/- towards loss of property value appreciation which the complainant suffered on account of deficiency in service rendered by OP.
5. Direct OP to pay compensation of Rs.10,00,000/- on account of deficiency in service rendered by OP.
6. Direct the OP to pay demand notice charges of Rs.25,000/- towards demand notice charges as detailed at paragraph No.10.
7. Direct the OP to pay reimbursement of litigation expenses and court fees of Rs.1,00,000/-.
8. And pass such other orders as deemed fit.

2. The case set up by the complainant in brief is as under:-

The OP is a developer of land bearing No.35/1, 35/2, 35/3 35/4 35/5 and 46 situated at Hanumenahalli Village, Shidlaghatta Taluk and he has proposed to develop residential gated community namely Celestial Eco Habitats as offered to sell the residential site to the complainant measuring 2400 sq. feet for a total sum of Rs.14,40,000/-.  The complainant has entered into MOU dated 08.10.2013 with the OP and the OP agreed to register and hand over the possession within two months from the date of obtaining conversion order from the concerned authorities by 20.10.2013.  The complainant has paid the entire sale consideration amount on 27.09.2013 and 30.07.2016 and 03.10.2016 through cheque. 

3. The OP has failed to allot any site in favour of the complainant even after received the entire sale consideration amount. In view of this the complainant has sustained financial loss and mental trauma.   The OP has expressed their inability to complete the project and deliver the assured residential site to the complainant and he has assured to repay the entire sale consideration amount along with interest at 18% p.a., and the entire money received from 03.10.2016. The OP has issued cheque towards repayment of partial sale consideration and the same was dishonored for the reasons fund insufficient.  After that the complainant got issued legal notice on 27.09.2023. the notice was returned unserved as ‘No such person’.  Hence this complaint is filed.
4. Though notice was served on the OP, they have not appeared before this commission, hence OP placed exparte.
5. The complainant has filed his affidavit evidence and relies on 07 documents. 
6. Heard the arguments of advocate for the complainant.  Perused the documents.

7. The following points arise for our consideration as are:-

1. Whether the complainant proves deficiency of service on the part of OP?
2. Whether the complainant is entitled to relief mentioned in the complaint?
3. What order?

8. Our answers to the above points are as under:

Point No.1:  Affirmative

Point No.2: Affirmative in part

Point No.3: As per final orders

REASONS

9. Point No.1 AND 2: These two points are inter related and hence they have taken for common discussion.  We have perused the allegations made in the complaint, affidavit evidence of complainant and documents. Inspite of issue of notice through paper publication, the OP remained absent. Hence OP neither challenged the allegations made in the complaint and also documents and they remained unchallenged.
10. In support of his contention the complainant filed his affidavit evidence reiterated all the allegations made in the complaint. He has also relied on document No.1 to 7.  The evidence and documents produced by the complainant clearly discloses that the OP being the developer has offered the complainant to allot a residential site for a total consideration of Rs.14,40,000/- in the layout going to be formed by them namely Celestial Eco Habitats, measuring 2400 sq. feet.  The complainant has produced the Copy of the project brochure issued by the OP as Ex.P.1, Copy of the MOU dated 08.10.2013 as Ex.P2, Copy of the bank statement as Ex.P3, Copies of two cheques along with return endorsements issued by the HDFC Bank for return of the cheque for insufficiency of funds issued by the OP in favour of the complainant as Ex.P4 and 5, Copy of demand notice, original postal receipts and unserved postal envelops. As Ex.P6.
11. The entire document clearly discloses that even though the complainant has paid the entire sale consideration amount and entered into MOU the OP failed to allot any site after getting the land converted for residential purpose.  The OP himself has informed the complainant his inability to complete the project and assured to return the amount. He has also issued two cheques for each Rs.7,50,000/- but both the cheques were dishonored. After that the OP has failed to refund the amount inspite of repeated request and also issue of legal notice. Under these circumstances, it is clear that the OP has committed deficiency of service and unfair trade practice and also cheated the complainant by receiving the sale consideration amount even though he was not able to form a residential layout as per the offer made by him in Ex.P1 the brochure and also the MOU Ex.P2 entered in favour of the complainant. Under these circumstances the complainant is entitled for refund of the amount with interest at 12% p.a., from the date of payment till realization.  The complainant is also entitled for compensation of Rs.2,00,000/- with litigation expenses of Rs.10,000/- to the complainant.  Hence we answer point No.1 in affirmative and point No.2 partly in affirmative.
12. Point No.3:- In view the discussion referred above we proceed to pass the following;

O R D E R

1. The complaint is allowed in part.
2. OP is directed to refund Rs.14,40,000/-  with interest at 12% p.a., from the date of payment till realisation.
3. OP is further directed to pay Rs.2,00,000/- as compensation with litigation expenses of Rs.10,000/- to the complainant.
4. The OP shall comply this order within 60 days from this date, failing which the OP shall pay interest at 14% p.a. after expiry of 60 days on Rs.14,40,000/- till final payment.
5. Furnish the copy of this order and return the extra pleadings and documents to the parties.

(Dictated to the Stenographer, got it transcribed and corrected, pronounced in the Open Commission on this 23^RD day of MAY 2024)

Documents produced by the Complainant-P.W.1 are as follows:

Documents produced by the representative of opposite party – R.W.1;

NIL