BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM AT BANGALORE URBAN

 14^th DAY OF FEBRUARY 2018

O R D E R

SMT. SHANTHA P.K, MEMBER

The complainant has filed this complaint U/s.12 of the Consumer Protection Act, 1986 against the Opposite Parties (herein after referred as OPs) with a prayer to direct the OPs to pay a sum of Rs.4,50,000/- with interest @ 24% p.a from the date of receipt till the date of realization and a sum of Rs.2,00,000/- as compensation for causing mental disturbance together with litigation cost of Rs.25,000/-.

2. The brief averments made in the complaint are as under:

That OPs.1 to 5 are the real estate developers and announced formation of a residential layout under the name and style “The Heritage” in land bearing survey No.50, 51, 52, 56, 57, 58, 59, 60 & 62, situated at Darapura Village, Mayaganahalli, Kasaba Hobli, Ramanagara Taluk.  OPs expressed their intention to sell site/plot bearing No.497 (corner) in proposed layout.  OP-6 quoted the price of Rs.15,75,000/- for site measuring of 30’x60’ east facing in the above mentioned project.  Complaint booked a site/plot and entered into agreement of sale executed by OP-2 in favour of complainant on 09.01.2015 and earlier complainant had transferred an advance amount of Rs.3,00,000/- vide cheque bearing No.291609 dated 05.01.2015.  In this regard, no specific date or commitment given by OPs on execution of this agreement in respect of delivery of possession of the plot and the promoter has not mentioned their duty and obligation in this agreement and also no legal title documents handed over to the complainant for the verifications by quoting reason.  That proposed land still was in agriculture nature applied for government approvals and complainant sent an intimation to OPs to withdraw her initial amount when there was no development work in the proposed land.  The Marketing Manager Mr.Prabhakar, convinced the complainant that the government approvals for the project will be released soon.  OPs sent an e-mail dated 27.05.2016 to pay instalment on the pretext of getting government approvals in favour of original land owners named B.Krishnamurthi and Veerabhadraiah.  OPs Marketing Manager Mr.Prabhakar induced the complainant by sending this e-mail and updated about the projects additional facility.  By virtue of this and as per the terms of the agreement, the complainant made another second instalment of Rs.1,50,000/- by way of cheque No.497816 dated 04.08.2016, drawn on ICICI Bank, Malleshwaram.  All the payments were released by Mr.Hemanth Kumar, husband of the complainant Mrs.Sujatha, who being a housewife and does not have own earning source.  Consequently, complainant’s authorized person i.e., her husband Sri.Gulera Hemanth Kumar had sent an e-mail on 08.04.2017 to OPs.  There is no development in the said project even after lapse of 2 years and 3 months.  The complainant demanded to return amount along with Bank’s interest as there was no development work in the proposed land.  Inspite of several demands made by the complainant vide e-mail on 08.04.2017, letter through speed post on 19.04.2017 and reminder-1 letter on 13.05.2017 regarding the payment of the said amount so far the OPs did not made the payment.  Though several times through email and through phone requested them to refund the amount that they evaded the same with one or other lame pretext by stating that the project work will be initiated once the approval obtained.  The complainant made several attempts to meet the Managing Director Mr.Kannan, who was always not traceable either at his office or through mobile.  The said conduct of OPs amounts to grave deficiency on the part of OPs.  The complainant got issued a notice through her counsel on 08.09.2017 to OPs demanding OPs to make payment of the amount due within 15 days from the date of receipt of notice and it was served on 11.09.2017.  Inspite of it the OPs failed to comply with the demand made in the said notice or reply.  Hence the complainant felt deficiency on the part of OPs and filed a complaint seeking appropriate relief for her grievance.

3. After registration of the complaint, notices were issued to OPs.  In spite of service of notices OPs failed to appear and contest the complaint.  Hence OPs were placed ex-parte.  Thereafter complaint filed her affidavit by way of evidence reiterating the complaint averments along with documents.

4. The sworn testimony of the complainant has remained unchallenged.  OPs neither filed version nor denied the sworn testimony of the complainant.

5. Perused agreement of sale and various documents produced by the complainant including the receipts.  The sworn testimony of the complainant coupled with documents establishes that OPs have received Rs.4,50,000/- on different dates from complainant towards sale of site.

6. The sworn testimony of complainant coupled with the allegations made in the complaint as well as the copy of the receipt, agreement of sale etc., goes to establish that the complainant believing the words of OPs booked a site measuring 30x60 feet in the proposed layout to be developed by OPs under the name and style “The Heritage” at Darapura Village, Mayaganhalli, Kasaba Hobli, Ramanagara Taluk and paid advance amount of Rs.3,00,000/- through cheque on 05.01.2015 and Rs.1,50,000/- through cheque on 03.08.2016, for which OPs have issued receipt and also executed the agreement of sale.  Despite OPs having received a huge sum of Rs.4,50,000/- failed to deliver the plot.  The conduct of OPs in not starting project and delivering the plot as promised and not returning the amount with interest amounts to deficiency of service and unfair trade practice on their part.  Due to irresponsible behavior on the part of OPs, the complainant has suffered financial loss and mental agony.

7. The very fact that OPs not contesting the proceedings leads us to draw an inference that OPs are admitting the claim of the complainant.  There is no reason to disbelieve the unchallenged affidavit evidence of the complainant and the documents produced.  The complainant has successfully proved the deficiency on the part of OPs.  Therefore, we are of the opinion that, OPs have to be directed to refund the advance amount of Rs.4,50,000/- together with interest @ 18% p.a from the date of actual receipt till the date of realization.  Further OPs have to be directed to pay compensation of Rs.50,000/- to the complainant for having caused financial loss, hardship, inconvenience and mental agony together with litigation cost of Rs.4,000/-.

8. In the result, we proceed to pass the following:  

  O R D E R

The complaint filed by the complainant U/s.12 of the Consumer Protection Act, 1986 is allowed in part. 

OPs are directed to refund a sum of Rs.4,50,000/- (Four Lakhs Fifty Thousand only) to the complainant together with interest @ 18% p.a from the date of actual receipt till the date of realization.  Further OPs are directed to pay compensation of Rs.50,000/- to the complainant for having caused financial loss, hardship, inconvenience and mental agony together with litigation cost of Rs.4,000/-.

OPs shall comply the said order within four weeks from the date of the order.

Furnish free copy of this order to both the parties.

(Dictated to the Stenographer, got it transcribed and corrected, pronounced in the Forum on this 14^th day of February 2018)

MEMBER                                                               PRESIDENT

Vln*                    

        Witnesses examined on behalf of the complainant dated 22.01.2018.

Smt.Sujatha

                 OPs  -       Absent

MEMBER                                                               PRESIDENT

Vln*