Andhra Pradesh

Kurnool

CC/88/2009

M.Dhanavardhan, S/o Sri Lakshma Naik - Complainant(s)

Versus

K.J.Reddy, S/o K.Narayana Reddy,Managing Director,Raga Mayuri Builders (Pvt) Ltd., - Opp.Party(s)

M. D. V. Jogaiah Sarma

07 Jul 2010

ORDER

Heading1
Heading2
 
Complaint Case No. CC/88/2009
 
1. M.Dhanavardhan, S/o Sri Lakshma Naik
R/o D.No. 87/40, Sree Lakshmi Nagar,B-Camp, Kurnool Town-518 002.
Kurnool
Andhra Pradesh
...........Complainant(s)
Versus
1. K.J.Reddy, S/o K.Narayana Reddy,Managing Director,Raga Mayuri Builders (Pvt) Ltd.,
D.No.50-760-A/120, Gayathri Estate, Kurnool Twon-518 002
Kurnool
Andhra Pradesh
............Opp.Party(s)
 
BEFORE: 
 HON'BLE MR. JUSTICE T.Sundara Ramaiah, B.Com., B.L. PRESIDENT
 HON'BLE MR. Sri.M.Kirshna Reddy, M.Sc, M.Phil., MEMBER
 
For the Complainant:
For the Opp. Party:
ORDER

                                                                                                           BEFORE THE DISTRICT FORUM:KURNOOL

Present: Sri. T.Sundara Ramaiah , B.Com B.L., President

And

Sri. M.Krishna  Reddy , M.Sc., M.Phil., Male Member

Wednesday the 07th day of July, 2010

C.C.No 88/09

Between:

 

M.Dhanavardhan, S/o Sri Lakshma Naik,

R/o D.No. 87/40, Sree Lakshmi Nagar,B-Camp, Kurnool Town-518 002.                           

 

           …..Complainant

 

 

-Vs-

 

K.J.Reddy, S/o K.Narayana Reddy,Managing Director,Raga Mayuri Builders (Pvt) Ltd.,

D.No.50-760-A/120, Gayathri Estate, Kurnool Twon-518 002.                              

 

…Opposite Party

 

     This complaint is coming  on this day for orders in the presence  of  Sri. M. D. V. Jogaiah Sarma ,  Advocate, for  complainant , and Sri. B. Jangam Reddy, Advocate for opposite party and upon perusing the material papers on record, the Forum made the following.

 

ORDER

(As per Sri. T.Sundara Ramaiah, President)

C C. No. 88/09                                                                                                                                                                                                                             

 

1.     This complaint is filed under section 12 of the C. P. Act, 1986 praying to direct the OP

 

(i)     to take necessary immediate steps for getting the approval from the local body ( i.e, Dinnedevarapadu Village Panchayat) for the layout laid by the company of the OP including the complaint schedule plot , and

 (ii)   to pay a sum of Rs. 19,00,000/-  towards damages to the complainant ,

(iii)    to pay a sum of Rs.5,000/- to the complainant  towards the costs of the complaint  and

(iv)   grant such other and further relief’s  this Hon’ble Forum deems fit and proper in the circumstances of the case.

 

2.   The case of the complainant in brief is as follows:- The complainant  purchased  the house plot bearing No. 117  shown  in  the schedule  from the  OP under  the  registered  sale  deed  dated 21-12-2005.  At the time of selling the schedule plot , the OP represented that the plot No.117 is in approved layout by the Gram Panchayat of Dinnedevarapadu. The complainant  purchased the said plot under the bonafide belief that the plot purchased by him is in approved layout. After the purchase of plot the complainant submitted a building plan  to the Gram Panchayat  for the purpose of locating a mineral water plant  in the said plot. The Gram Panchayat , Dinnedevarapadu  refused  to sanction approval  for  construction  of the building to the complainant on the ground that the said layout in L.Dis.No.9/2001  was not at all approved by Gram Panchayat . Then the complainant  approached the OP and that the OP  informed him that he was taking steps  for getting the approval  of the layout .Believing  the assurance given by the OP the complainant  started the construction work in the plot . When the construction was going on the officials of Gram Panchayat of Dinnedevarapadu came to the spot and stopped the construction work on the ground that the layout is not approved and the  building permission is not there . The complainant  invested an amount of Rs.15 lakhs for construction of the building in the plot purchased by him. The OP deceived  the complainant  and sold the plot which is not in approved layout. The OP also deceived the  complainant  by encouraging him to proceed with  the construction activity in the plot making a false promise of taking steps to get layout approved from the Village Panchayat of Dinnedevarapadu. Alienating a plot which is not in approved layout  amounts to deficiency of service . The complainant  suffered mental agony and torture  due to  the  attitude of the  OP.  The   complainant  also  got  issued  legal  notice dated 15-01-2009 to the OP to take steps to get the  approval of the layout. The OP did not take steps to get the layout approval . The complainant  gave a police complaint and it was numbered as Cr.No.23/2009 dated 05-02-2009. The police did not take any action against the OP. Hence the complaint.

 

3.     The OP filed written version  stating  that the complaint is not maintainable. The date on which the cause of action arose is not mentioned in the complaint.  The reliefs asked  for are in the nature  of mandatory injunction mentioned under specific relief Act . Such relief can be granted only by a Civil Court .The complainant  got possession of the schedule land under the sale deed and he also constructed pakka building there in. The terms in the sale deed dated 21-12-2005  only will bind the parties.  The schedule land with other extent  of land was previously purchased by the OP on 09-02-2005.  In the sale deed of the complainant it is specifically mentioned the names of the  earlier owners, the layout got approved by the earlier owners and the layout number.  The land was laid into plots by the previous owners. The complainant  purchased the land only for a commercial purpose to sell for higher price to make a profit . The plot is  in approved layout as per the  sale deed under which the OP purchased it . The complainant  instead of filing the suit for getting necessary relief of permission for building construction against Gram Panchayat wrongly filed the present complaint with the prayer. There was no deficiency of service  on the part of the OP. The complainant wants to make money by black mail method. The complainant also  lodged a private complaint against the OP in Cr.No.23/2009 . The police referred the said case as false. Thereafter the complainant filed the present complaint. The claim of the complainant is false. The complaint is liable to be dismissed.  

 

4.     On behalf of the complainant Ex. A1 to A6 are marked and sworn affidavit of the complainant is filed.  On behalf of OP no document is marked sworn affidavit of OP is filed.

 

5.       Both parties filed written arguments.    

 

6.       The points that arise for consideration are     

(i)       whether the complaint is maintainable ?

(ii)      whether there is any deficiency of service on the part of the OP?

  1. whether the complainant is entitled to the relief as prayed for?
  2. whether the complaint is bared by time

(iv)     To what relief?

 

7. Points 1 to 3:-  Admittedly the complainant purchased plot No. 117 situated with in the limits of Dinnedevarapadu (v) form the OP under a registered sale deed Ex.A1 dated 21-12-2005 .The said plot was purchased by the complainant  for a sale consideration of Rs.78,500/- as mentioned in Ex.A1. It is the case of the  OP that the complainant  is not a consumer that the dispute between the  complainant  and the OP is not a consumer dispute  and that the complainant  is not maintainable . It is for the complainant to show that he is a consumer as defined in Sec. 2(1) (d) of the Act. Sec. 2(1)(d) (ii) provides that consumer is a person who hires or avails any services for a consideration :  In the present case admittedly the complainant purchased house plot bearing No. 117 from the OP for a consideration of Rs.78,500/- . The complainant  purchased the plot by paying consideration to the OP . The word service is defined in Sec. 2(1) (O) of the Act. The definition does not include the rendering  of any service  free of charge . Admittedly  the OP in the present case received consideration from the complainant  and executed Ex.A1 sale deed. The definition of service  includes no using construction .  In the instant case admittedly  property that was sold to the complainant  by the OP is a house plot bearing No. 117 . The contention of the OP that the complainant  is not a consumer and that the complaint is not maintainable is not acceptable.    

 

8.     It is the case of the complainant  that the  OP sold the plot to him stating that the plot is in approved lay out , approved by the Gram Panchayat of Dinnedevarapdu in L.Dis .No. 9/2001 dated 20-06-2001 . The OP also asserts that what  is sold to the complainant under Ex.A1 is plot No. 117 in the layout plan got approved by Chalapathi Housing  Finance Private Limited , Kurnool in L.Dis 9/2001 dated 20-06-2001 . As seen from the  recitals  in Ex.A1 it is very clear  that the OP was not the owner of the plot No. 117 sold to the complainant  by the date of alleged approval on 20-06-2001 . According to the OP the land was purchased from Chalapathi Housing  Finance Private Limited, Kurnool under  registered  sale  deeds  dated  23-11-2004 ,  09-02-2005,    and 21-03-2005. The alleged layout was done before the OP purchased the land. In Ex.A1 it is mentioned that plot No. 117  sold  to the complainant  is in  approved  layout  L.Dis.No.09/2001 dated     20-06-2001.

 

9.     It is argued by the learned counsel appearing for the complainant that  plot sold to him by the OP is not in the approved lay out and that the recitals in Ex.A1 that plot No. 117  is in a approved  layout is false . The complainant in support of his contention that the plot is not in  approved layout ,  relied on Ex.A5 and Ex.A6. Ex.A5 is the letter addressed by the Panchayat Secretary , Dinnedevarapadu to the General Manager , District Industries Centre , Kurnool . In the said letter it is mentioned  that the plot No. 117 is not in approved layout of  the Gram Panchayat. There is also recital in Ex.A5 that layout  was  not approved by the Gram  Panchayat in  L. Dis.No. 09/2001  dated 20-06-2001 .Ex.A6 is the letter addressed to the complainant  by the Gram Panchayat Officer dated 14-10-2008  . In the said letter also it is clearly mentioned that Raaga Mayuri Builders Private Limited  laid the plots without obtaining the permission from the concerned Gram Panchayat. In Ex.A4 letter dated  25-01-2008 addressed by Panchayat Secretary , Dinnedevarapadu Gram Panchayat to the complainant , it is mentioned that the land purchased by   Raagamayuri Builders is an agricultural land and it has to be converted form agriculture to non agriculture. As seen from the  recitals  in the above documents  it is very clear that  the layout was not approved  by the Gram Panchayat , Dinnedevarapadu . It is stated by the complainant  in his sworn affidavit that he purchased the plot basing on the representation made by the OP that the plot 117 is in approved layout . The OP cannot escape liability  by saying  that the alleged lay out was done before he purchased  the land from Chalapathi Housing Finance Private Limited . The  OP did not place any documentary evidence  that the plot sold to the complainant is in approved layout. It is for the trader who is doing real estate business  to see that the plots are in approved lay out . The complainant  purchased the  plot on the  belief  that it is in approved  layout . The OP by mentioning in the sale deed in Ex.A1 that the plot is in approved layout made the complainant  to purchase plot  No. 117 .

As per Sec. 55 of the T. P. Act the seller is bound to disclose to the buyer any material defect in the property . The OP adopted unfair method by making false representation that the plot No. 117 is in approved layout . It is found that the plot No. 117 is not in approved lay out as mentioned in the sale deed  Ex.A1 . There is unfair trade practice and amounting to deficiency of service on the part of the OP. The OP suppressed the fact that the plot purchased by the complainant  is not in approved layout .

 

10.    The complainant  filed the complaint praying to direct the OP to take steps for getting the approval of the layout from the local body . The OP sold the plots to various persons .Admittedly the OP is not the owner of the plots that were sold. The person who is not a owner of the property can not apply  for approval of the layout . In the present case it is the complainant who is the owner of the plot No. 117 . Therefore the Op can not be directed to get the approval of the layout from the  local panchayat. The complainant also prays to grant sum of Rupees 19 lakhs  towards damages . It is the case of the complainant  that he purchased the plot from the OP , he started the construction and applied for permission  to the local Panchayat for the construction of the building in plot No. 117. Admittedly the complainant  constructed part of the building in plot NO. 117 purchased by him without obtaining prior permission from the local Panchayat.  For making construction by the complainant  without obtaining the prior permission from the local Panchayat , the OP cannot be held responsible. The complainant submits that he incurred damage of Rs.19 lakhs  by making construction  in the plot purchased by him. Except an allegation in the complaint  and also in the sworn affidavit of the complainant , there is no material  to show that the complainant spent Rs.19 lakhs for the construction of the building in the plot purchased by him. As already stated the plot purchased by the complainant is not in approved layout. The OP sold the plot to the complainant stating that the plot bearing No. 117 is in approved layout. The building permission cannot be issued unless there is approved layout by the local Gram Panchayat. As the OP sold the  plot which is not in approved layout , the OP is liable to pay compensation to the complainant . As already stated there is no material  on record to show  that the complainant  suffered damage of Rs.19 lakhs. As seen from Ex.A1 it is very clear  that the complainant  purchased the plot for Rs.78,500/- . The complainant is not in a position to make use of the said plot as there is no approved layout . Therefore I think it is just and proper to direct the OP to pay compensation of Rs.78,500/- to the complainant with interest at 18% from the date of Ex.A1 dated  21-12-2005 till the date of payment.        

 

11.Point No. 4:- It is the contention of the OP that complaint is bared by time . Sec. 24-A provides that the District Forum  shall not admit a complaint unless it is filed within two years from the date on which the cause of action has arisen. Admittedly the complainant  purchased the plot from the OP under Ex.A1 dated       21-12-2005 . It is submitted by the learned counsel appearing for the complainant that the complainant came to know about the fraud played  by  the  OP  only  when  he  received  Ex.A4  letter  dated   25-01-2008 issued by the Gram Panchayat . As already stated in Ex.A1 sale deed it is clearly mentioned that the plot purchased by the complainant is in approved layout . Under Ex.A4 letter dated           25-01-2008 the complainant  was informed by the local Panchayat that the plot purchased by him is not in approved layout and that  fresh layout proposal has to be submitted to Gram Panchayat. The complainant filed the present complaint on 18-03-2009. The complaint is filed within two years after the complainant  came to know about the defect . The complaint is within time.

 

11.    In the result, the complaint is partly allowed directing the OP to pay compensation of Rs.78,500/-  with interest at 18% from the date of Ex.A1 i.e, 21-12-2005 till the date of payment and also to pay an amount of Rs.500/- towards costs.

      

Dictated to the stenographer, transcribed by her, corrected and pronounced by us in the open bench on this the 07th day of July ,  2010.

   

          Sd/-                                                                  Sd/-                                                                          

  MALE MEMBER                                                            PRESIDENT

APPENDIX OF EVIDENCE

Witnesses Examined

 

 

 

For the complainant : Nil            For the opposite parties :Nil

 

 

 

List of exhibits marked for the complainant:-

 

Ex.A1        Photo copy of Registered Sale deed dated 21-12-2005 executed by OP in favour of the complainant .         

 

Ex.A2.       Photo copy of Layout plan named as “Mayuri Green City ,

                Phase-I”   

 

Ex.A3.       Office copy of the legal notice dated 15-01-2009.

 

Ex.A4.       Photo copy of letter dated 25-01-2008 from Panchayat Secretary , Dinnedevarapadu Village to complainant.

 

Ex.A5.       Photo copy of letter dated 16-05-2008 from Panchayat Secretary , Dinnedevarapadu Village to General Manager, DIC, Kurnool.

 

Ex.A6.       Letter addressed to the complainant  by the Gram Panchayat Officer dated 14-10-2008.

 

 

 

List of exhibits marked for the opposite parties:  Nil

 

 

    Sd/-                                                                                   Sd/-

MALE MEMBER                                                            PRESIDENT

 

// Certified free copy communicated under Rule 4 (10) of the

A.P.S.C.D.R.C. Rules, 1987//

Copy to:-

Complainant and Opposite parties

Copy was made ready on :

Copy was dispatched on:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
 
[HON'BLE MR. JUSTICE T.Sundara Ramaiah, B.Com., B.L.]
PRESIDENT
 
[HON'BLE MR. Sri.M.Kirshna Reddy, M.Sc, M.Phil.,]
MEMBER

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