Haryana

Karnal

CC/467/2020

Raj Kumar Chauhan - Complainant(s)

Versus

M/s True Zone Buildwell Private Limited - Opp.Party(s)

Sudhakar Mittal

21 Nov 2023

ORDER

BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION, KARNAL.

 

                                                      Complaint No. 467 of 2020

                                                      Date of instt.29.10.2020

                                                      Date of Decision:21.11.2023

 

Raj Kumar Chauhan son of late Shri Hukam Singh Chauhan, resident of house no.680, Sector-8, Urban Estate, Karnal.

 

                                               …….Complainant.

                                              Versus

 

1. M/s True Zone Buildwell Pvt. Ltd., Global spaces, Sector-32, behind sector-8, Part-II, Karnal through its Managing Director/Authorized signatory now known as Raj Darbar village Pvt. Ltd. having on its offices situated at back side Heritage Lawn, near Ras Residency, Sector-35, Karnal.

 

2. M/s Highland Developers Pvt. Ltd. plot no.5, LSC, 2^nd floor, Vardhman Royal Plaza, Gujrawala Town, Delhi-09 though its Managing Director/authorized signatory.

 

3. Town and Country Planning through District town Planner, HUDA Complex, Sector-12, Karnal.

 

…..Opposite Parties.

       

Complaint Under Section 35 of Consumer Protection Act, 2019.

 

Before   Shri Jaswant Singh……President.

              Shri Vineet Kaushik…….Member

              Dr. Suman Singh…….Member

 

Argued by:  Shri Sudhakar Mittal, counsel for the complainant.

                    Shri Narender Zak, counsel for the OPs no.1 & 2.

                    OP no.3 exparte, vide order dated 12.05.2023.

 

                    (Jaswant Singh, President)

ORDER:                     

          

                 The complainant has filed the present complaint Under Section 35 of Consumer Protection Act, 2019 against the opposite parties (hereinafter referred to as ‘OPs’) on the averments that complainant alongwith his wife had purchase one plot bearing no.154, situated in Narsi village Sector -32, phase-1, Karnal measuring 302.588 sq. yard from OP no.1. Complainant had paid the full and final payment to the OP no.1 in the year 2007. The possession of the property was delivered to the complainant in the year 2007. At the time of issuance of possession letter, OP no.1 has assured the complainant that the site is fully developed as per law and they are competent to issue possession letter of plot in question as they have obtained the completion certificate from OP no.3. On the asking of OP no.1, complainant further entered into a maintenance agreement with the OP no.2. When the complainant visited the premises for construction of a house, he was shocked to know that development work had not been completed by the OP no.1 and even the residents of the locality were struggling for basic amenities. The complainant approached the OPs no.1 and 2 ad asked them to produce the completion certificate issued by OP no.3 but instead of showing the completion certificate they started raising further demand in lieu of registration charges, maintenance charges and holding charges etc. The area in which the possession of the plot has been given to the complainant was not even having the sewerage connection.

 2.            It is further averred that as per Haryana Development and Regulation of Urban Area Act, the OP no.1 is supposed to deliver possession of the plot after obtaining completion certificate from the OP no.3 and before that he has to complete the development work as per approved zoning plan. OP no.1 without completing development work or obtaining completion certificate had illegally issued possession certificate to the complainant. Complainant requested the OPs no.1 and 2 that the conveyance deed of the plot executed and registered in favour after obtaining completion certificate from the OP no.3. The complainant further demanded compensation on the total deposited amount @ 18% per annum interest but OPs instead of obtaining completion certificate and making payment of compensation to the complainant is harassing the complainant by raising illegal demands and threatening the complainant to cancel the allotment. OP no.2, who is the sister concern with the OP no.1 never provided any services in the Narsi Phase-I. Neither they have any office in the locality nor provided any services in lieu of maintenance agency. The OPS have failed to fulfill their contractual obligations and to provide modern facilities and other amenities, as agreed upon under the agreement. It is further averred that the OP no.1 is not having completion or part completion certificate or approved zoning plan and complainant requested not to charge maintenance charges till the date of obtaining completion certificate from the OP no.3 but the OPs no.1 and 2 instead of taking care of genuine request of the complainant started raising illegal demands in the name of maintenance and holding charges. Till the date OP no.1 is not having the documents regarding the validity period of the licence to develop the colony; Date and time when the zoning plan of the area was sanctioned; The provisions and rules under which the possession certificate was issued; The date and time when the OP no.1 applied for obtaining completion certificate and the copy of completion certificate issued by the OP no.3 and the provisions and rules under which the OP no.1 wants to execute and register the sale deed in favour of the complainant without obtaining approval of zoning plan, completion certificate. The OPs have failed to fulfill their contractual obligations and to provide modern facilities and other amenities, as agreed upon under the agreement. It is further alleged that OPs no.1 and 2 have failed to develop the project as required under the law. They did not even have a valid and effective license to develop the colony. Neither the completion or part completion certificate has been issued to the OPs no.1 and 2 nor they are having approved zoning plan from the office of OP no.3. As per the provisions contained in Haryana Development and Regulation of Urban Area Act, the OPs no.1 and 2 were legally bound to maintain the area upto the period of 5 years from the date of obtaining of completion certificate but the OPs no.1 and 2 in collusion with OP no.3 without developing, maintaining and obtaining completion certificate started charging maintenance charges illegally from the inhabitants. In this way there was deficiency in service  and unfair trade practice on the part of the OPs. Hence this complaint.

3.             On notice, OP no.1 and 2 appeared and filed their written version raising preliminary objections with regard to maintainability; cause of action; locus standi; jurisdiction and concealment of true and material facts.  On merits, it is pleaded that the plot bearing no.154, phase-1 was allotted to the complainant and his wife Smt. Mridula Chauhan on 19.12.207. It is pertinent to mention here that the allottee never ever controverted/challenged the terms and conditions of the plot Buyer Agreement, as such, the present complaint cannot challenge the terms and conditions of the said agreement before this Commission in the present complaint. As per terms and conditions of the agreement it has been clearly mentioned that the buyer/holder of the plot would be liable to pay the necessary charges, as determined by the seller or the maintenance agency for maintaining various services in the colony or as would be determined by the seller or its nominated agency from time to time. The exorbitant cost of product and services in the current scenario has been revised from time to time and demanded from the plot holder and the complainant was asked to deposit at the rate, the prevailing charges by the OPs. The abovesaid charges are also being charged from the plot holders in the other colonies developed by the other companies in the State of Haryana. As such the demand of the OPs from the plot holder including complainant is reasonable and is in accordance with the terms and conditions of the agreements, thus there is no substance in the complaint filed by the complainant and as such the same is liable to be dismissed on this score alone, as such the complainant is bound to make the agreed payment to the agreed payment to the OPs. The complainant further liable to pay the holding charges at the rate of Rs.25/- per sq. yds. Per month, by not getting the Conveyance Deed executed and registered in his favour and as such, he is liable to pay the holding charges to the OP, as per the terms and conditions of the Plot Buyer Agreement. It is further pleaded that complainant/allottees were sent so many reminders/letters to get the sale deed registered in their favour and complainant/allotees just to avoid to get the sale deed executed and registered in their favour, as well as the said payment, has filed the present complainant just to harass and humiliate the OPs and tried to run away from the agreement, duly executed between the parties.  It is further pleaded that in the present case also complainant failed to comply with the terms and conditions of the said agreement and on his failure, the OP has every right to demand the payment as alleged in the complaint and in case of failure, the OP has every right to cancel the allotment. It is further pleaded that the OPs have fulfilled their contractual obligation and provided the basic amenities to the inhabitants of the locality including the present complaint. It is worthwhile to mention here that there are so many inhabitant/allottees residing in the vicinity. Hence there is no deficiency in service on the part of the OPs no.1 and 2. The other allegations made in the complaint have been denied and prayed for dismissal of the complaint.

4.             OP no.3 appeared and filed its separate written version stating therein that the matter regarding charging of holding and maintenance charges from the plot buyer related to the colonizer and plot buyers as per their bilateral Agreement. The department does not play any role in the said agreement. It is further stated that services such as, water supply, sewerage, drainage, electricity etc. are made functional/operational by the colonizer. Functionality/operationalization of aforesaid services shall be certified by Superintendent Engineer, HUDA. It is further stated that the Department of Town and Country Planning, Haryana has granted Licence no.401 to 405 of 2006 to True Zone Buildwell Pvt. Ltd. to develop residential plotted colony over land measuring 55.175 acres in the revenue estate of village Budhakhera District Karnal under the Haryana Development and Regulation of Urban Area Act, 1975 and the rules 1976 framed thereunder. This license was valid upto 11.01.2008. This license was renewed upto 11.01.2009 vide Director, Town and Country Planning, Haryana, Chandigarh ends. No.5DP-III-2008/3727 dated 02.06.2008. No document showing further renewal of license is available in this office record. It is further stated that no completion certificate has been issued by the Department to the colonizer till date. There is no deficiency in service on the part of the OP no.3 and prayed for dismissal of the complaint.

5.             Parties then led their respective evidence.

6.             Learned counsel for the complainant has tendered into evidence affidavit of complainant Ex.CW1/A, copy of plot buyer agreement Ex.C1, copy of agreement dated 19.12.2007 Ex.C2, copy of permission to mortgage Ex.C3, copy of payment receipts dated 19.09.2007, 20.09.2007, 24.09.2007 and 26.09.2007 Ex.C4 to Ex.C7, copy of newspaper cutting Ex.C8, copy of notice to OPs Ex.C9, copy of letter dated 19.10.2015 Ex.C10, copy of order dated 28.06.2016 Ex.C11 and closed the evidence on 04.08.2022 by suffering separate statement.

7.             On the other hand OPs no.1 and 2 tendered into evidence affidavit of Dishant Jain, Manager Ex.OP1-2/A, copy of possession letter dated 19.12.2007 Ex.OP1, copy of reminder letters  and their postal receipts dated 22.07.2014, 24.08.2014, 20.09.2014, 27.10.2014, postal receipt, 17.12.2014, 20.01.2015, 23.01.2015, 20.02.2015, 18.08.2015. 15.04.2015, 15.05.2015, 15.06.2015, 01.10.2015, 18.11.2015, 01.01.2016, 03.03.2016, 01.03.2016, 01.05.2016, 07.06.2016 Ex.O1 to Ex.Ex.O34, copy of sale deed of plot no.230 Ex.O35 and copy of sale deed of plot no.302 Ex.O36 and closed the evidence on 27.02.2023 by suffering separate statement.

8.             OP no.3 has failed to produce any evidence after availing several opportunities. On 12.05.2023, none has come present on behalf of OP no.3. hence, the exparte proceeding initiated against the OP no.3 of the order of the Commission.

9.             We have appraised the evidence on record, the material circumstances of the case and the arguments advanced by the learned counsel for the parties.

10.           Learned counsel for the complainant, while reiterating the contents of complaint, has vehemently argued that complainant has purchased the plot in question for the OP no.1 and at the time of purchase the complainant had paid the full and final payment to the OP. Nothing was due against the complainant. As per Haryana Development and Regulation of Urban Area Act, the OPs no.1 is supposed to deliver the possession of the plot after obtaining completion certificate from the OP no.3 and before that he have to complete the development work as per approved zoning plan. The OP no.1 without completing development work or obtaining completion certificate, had illegally issued possession certificate to the complainant and started raising illegal demands on account of holding charges as well as maintenance charges. The complainant requested the OPs no.1 and 2 not to charge the abovesaid charges without obtaining completion certificate from OP no.3 but OPs no.1 and 2 did not heard the genuine request of the complainant and lastly prayed for allowing the complaint. .

11.           Per contra, learned counsel for the OPs no.1 and 2, while reiterating the contents of written version, has vehemently argued that the plot in question was alloted to the complainant. The complainant never ever controverted/challenged the terms and condition of the plot buyer agreement, as such, the present complainant cannot challenge the terms and conditions of the said agreement before this Commission. Moreover, in buyer agreement it has been clearly mentioned that the buyer/holder of the plot would be liable to pay the necessary charges, as determined by the seller or the maintenance agency. The complainant is bound to builder-buyer agreement and in case the complainant/buyer fails to perform his part of contract, the OPs are fully competent to rescind the said agreement and in the present case also, the complainant failed to comply with the terms and conditions of the said agreement and on his failure, OPs have every right to demand the payment, as alleged in the complaint and in the case of failure, OPs have every right to cancel the allotment and lastly prayed for dismissal of the complaint.        

12.           We  have duly considered the rival contentions of the parties.

13.           Admittedly, on 19.12.2007, the plot bearing no.154 was allotted to the complainant in the vicinity of the OP.  

14.           As per version of OP no.3 is that department of Town and Country Planning has granted license no.401 to 405 of 2006 to True Zone Buildwell Pvt. Ltd. to develop residential plotted colony over the land measuring 55.175 Acres in the revenue estate of village Budhakhera District Karnal, under the Haryana Development and Regulation of Urban Area Act, 1975 and the rules 1976 framed thereunder. The OP has not demanded any charges from the plot holder. The dispute is between the allottees and the colonizers with regard to holding the maintenance charges. No completion certificate has been issued to the colonizer by the OP till date. The license granted by the OP no.3 to OPs no.1 and 2 was valid upto 11.01.2008 and again renewed upto 11.01.2009 by the Director, Town and Country Planning, Haryana, Chandigarh on 02.06.2008. No document showing further renewal of the license is in the office of OP no.3.

15.           In view of the above submissions and after careful perusal of the entire record including the voluminous documentary evidence, the first and foremost question which requires adjudication by this  Commission is as to whether the residential project which has been launched by the OPs no.1 and 2 under the name and style of M/s True Zone Buildwell Pvt. Ltd., Global Spaces, Sector-32, behind Sector-8, Part-II, Karnal has been completed in all respect and OPs no.1 and 2 have obtained completion certificate from OP no.3. If the answer to this main question is in affirmative, in that eventuality, the complainant would have cause for relief. If this Commission comes to the conclusion that the project has not been completed as per the layout plan in that eventuality, there would certain other terms which are to be taken into consideration by this Commission and absolutely this Commission has no hesitation to observe that the OPs no.1 and 2 after floating a residential complex had tried to extract money from the complainant or other allottees as they could not complete the project within the stipulated period and as per approved zoning plan. As per the version of OP no.3, no completion certificate has been issued to the OPs no.1 and 2 till date. So, OPs no.1 and 2 issued possession to the complainant and another allottees without obtaining the completion certificate from competent authority, is not tenable in the eye of law.

16.           As a matter fact, now a project have been taken over by the Municipal Corporation, Karnal but the project cannot be completed in all respect by the Municipal Corporation unless and until the financial liability are being discharged by the OPs no.1 and 2 and still, on one pretext or the other they have been demanded the extra payment from the complainant or the other allottees. Infact, a project cannot be deemed to be completed unless and until a completion certificate is issued by the office of the Town and Country Planner, Karnal and as per the letters written by the department concerned, it is crystal clear that the project has not been completed and the OPs no.1 and 2 are running away to discharge their liability for completion of the project or they are knocking the doors of the different courts infact entered into an unwanted litigation to harass not only to the complainant but other allottees also. In such circumstances, the Commission is callous enough and the developers who are cheated the complainant or other allottees by the deceitful means are to be dealth with severe hands.

17.           Admittedly, the complainant had deposited the entire amount of the plot in question and the letter of possession had also been offered. Now, again the question arises when the legal physical possession has not been delivered then how could the other miscellaneous charges which includes the holding charges, the interest free maintenance charges etc. could be demanded by the OPs no.1 and 2 and it is rather obligatory on the part of the OPs no.1 and 2 to maintain the residential complex after completion of all the formalities which includes carpeting of roads, regular supply of water and sewerage treatment plant, maintenance of parks, regular supply of electricity etc. and infact, it is mandatory as per the directions issued by the department that the OPs no.1 and 2 are required to maintain the services in the colony upto a period of five years after grant of the final completion certificate.

18.           With the above observation and discussion, in the considered opinion of this Commission and taking into consideration of the various aspects and ingredients, it a case where the OPs no.1 and 2 have been working as per their whims and in scandalous manner to cheat not only the complainant but the other allottees and to receive unlawful gains by way of unlaw means in squarely covered by a ratio laid down by Hon’ble Justice Jasbir Singh (Retd.) President, State Consumer Disputes Redressal Commission U.T. Chandigarh in complaint no.167 of 2015 which was decided on 02.02.2016 and the complainant would be entitled to get the interest on the amount which he has already deposited in this case and the sale deed executed within the stipulated period as mentioned in the celebrated authority.

19.           From the letters dated 19.10.2015 Ex.C9 of Directorate of Town and Country Planning, Haryana, Chandigarh and letter 27.11.2013 Ex.C10 of by District Town Planner Karnal to the OPs no.1 and 2 clearly proved that OPs no.1 and 2 have failed to complete the development work, providing basic amenities to the plot holders and also failed to take the completion certificate from the competent authority So, we are of the considered view that the act of the OPs no.1 and 2 amounts to deficiency in service and unfair trade practices.

20.           Thus, as a sequel to above discussion, we allow the present complaint and direct the OPs no.1 and 2 not to charge the holding, maintenance and security charges till obtaining the completion certificate from the OP no.3. We further direct the OPs no.1 and 2 to refund the charged amount to the complainant in lieu of maintenance, holding and security charges with interest @ 12% per annum from the date of deposition till its realization. We further direct the OPs no.1 and 2 to pay Rs.25,000/- to the complainant on account of mental agony and harassment suffered by him and Rs.11,000/- for the litigation expense. Complaint qua OP no.3 stands dismissed. This order shall be complied with within 45 days from the receipt of copy of this order. The parties concerned be communicated of the order accordingly and the file be consigned to the record room after due compliance.

Dated: 21.11.2023.                                                                  

                                                                  President,

                                                       District Consumer Disputes

                                                       Redressal Commission, Karnal.

 

                (Vineet Kaushik)        (Dr. Suman Singh)

                     Member                        Member