JUSTICE V.K.JAIN (ORAL)

IA/7068/2019 (For c/delay)

The delay in filing the appeal is condoned subject to payment of Rs.10,000/- as cost to the complainants.

FA/767/2019

2.      The complainants/respondents booked a residential flat with the appellant in a project, namely, Ansals Woodbury Apartments which the appellant was to develop in Zirakpur. Pursuant to their application dated 22.9.2007, the appellant allotted an apartment in the above-referred project to the complainants for a consideration of Rs.3080902.50, on the terms and conditions annexed thereto. Vide letter dated 7.1.2011, the appellant offered possession of the aforesaid unit to the complainants. The said letter, however, was handed over to them only on 15.2.2011, as is evident from the acknowledgement of the complainant appearing on the said letter. The case of the complainants is that since the construction was not complete at that time, they did not take physical possession of the flat. The complainants took physical possession on 17.4.2013,  though neither the Occupancy Certificate had been obtained nor the water and sewage connection had been obtained by the appellant by that time. They approached the concerned State Commission by way of a consumer complaint seeking a direction to the appellant to obtain the requisite Occupancy Certificate and also seeking compensation from them.

3.      The complaint was resisted by the appellant, which admitted the allotment made to the complainants but submitted that there was no fixed time period agreed between the parties for delivery of possession and that they had completed the project and offered possession to the complainants on 7.1.2011. They also submitted that they had applied for the requisite Completion Certificate though the same had not been issued and a writ petition had been filed by them before the Hon’ble High Court of Punjab and Haryana seeking a direction for the issuance of the said Completion Certificate. The writ petition is stated to have been disposed of,  with a direction to the concerned authorities to dispose of the representation of the appellant in this regard within a period of three months. It is also submitted by the learned counsel for the appellant that a contempt petition has been filed by them against the concerned authorities for non-compliance of the order passed by the Hon’ble High Court.

4.      It is an admitted position that the application for allotment of the flat was submitted by the complainants in September 2007. The allotment itself was made on 26.12.2007. Even though no particular time period was stipulated in the allotment letter for delivery of possession, it can hardly be disputed that the flats should have been constructed and possession ought to have been delivered within a reasonable time. In my opinion, the State Commission was justified in taking three years from the date of allotment from the date of allotment as a fair and reasonable time for the delivery of possession of the allotted flats to the complainants.

5.      The appellants offered possession to the complainants in January 2011. Had the flats been complete in all respects and had the appellant obtained the requisite Occupancy Certificate / Completion Certificate after providing the requisite services, the complainants would have been under an obligation to take possession when it was offered to them in January 2011. However, even the basic services were not available at the time the possession was offered on 7.1.2011 as would be evident from the letter dated 16.6.2015 issued by Municipal Council, Zirakpur. The said letter leaves no doubt that even the basic services such as the sewer connection and water connection had not been provided till the time the said letter was issued on 16.6.2015. Therefore, it can hardly been disputed that the complainants were not in a position to enjoy the possession of the flats on 7.1.2011 when it was offered, albeit without basic amenities, on paper to them. No flat owner can conveniently occupy a residential flat without even the basic facilities of water and sewerage connection being available therein.

6.      In fact, the complainants were not under an obligation to accept physical possession of the flat even on 17.4.2013 when they reluctantly accepted the same after waiting for the basic amenities for more than two years from the date on which the possession was offered to them. Therefore, the direction of the State Commission to the appellant to obtain the requisite Completion Certificate/Occupancy Certificate after obtaining the sewerage connection and water connection from the competent authorities, cannot be faulted with.

7.      As far as the compensation by way of interest  is concerned, the State Commission has awarded only from 25.12.2010, i.e., w.e.f. three years from the date of allotment till 17.4.2013 when the physical possession was taken by the complainants though the residential flat did not have basic amenities such as sewer and water connection even at that time.

8.      At this stage, the learned counsel for the appellant states on instructions that the appellant  would accept the order passed by the State Commission if the compensation is reduced from 12% p.a. to 8% p.a. This is acceptable to the complainants as is stated by their counsel on instructions. Hence, the impugned order is modified only to the extent that instead of compensation in the form of simple interest @ 12% p.a., the appellant shall pay the said compensation by way of interest @ 8% p.a. on the amount of Rs.3030918/- w.e.f. 24.12.2010 to 17.4.2013. The other directions given by State Commission remain unchanged. The appellant shall comply with the order passed by the State Commission within three months from today. The appeal stands disposed of accordingly.

9.      The amount which the appellant has deposited with the State Commission in compliance of the interim order of this Commission, shall be released to the complainants  alongwith interest which may have accrued on that amount and shall be duly adjusted.