Tamil Nadu

South Chennai

CC/123/2022

Hariharan R - Complainant(s)

Versus

M/s. Sarvaloka Services On Call Pvt., Ltd., and 4 others - Opp.Party(s)

M/s. Ravichandran

09 Mar 2023

ORDER

                                             Date of Complaint Filed : 31.03.2021

                                                  Date of Reservation      : 27.02.2023

                                                  Date of Order               : 09.03.2023

DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION,

CHENNAI (SOUTH), CHENNAI-3.

 

PRESENT:    TMT. B. JIJAA, M.L.,                                                 : PRESIDENT

                       THIRU. T.R. SIVAKUMHAR, B.A., B.L.,                 :  MEMBER  I 

                      THIRU. S. NANDAGOPALAN., B.Sc., MBA.,           : MEMBER II

 

CONSUMER COMPLAINT No. 123/2022

THURSDAY, THE 9^th DAY OF MARCH 2023

Mr.Hariharan, R,

S/o Mr. V. Ramesh,

Plot No.2, M.K Flats, Kannammal Street,

Madanandapuram, Porur,

Chennai – 600 116.                                                          ... Complainant

..Vs..

 

1.M/s Sarvaloka Services-On-Call Private Ltd,

   (housejoy),

   L-371, 5^thMain, 6^th Sector,

   HSR Layout Bangalore 560 102,

  Rep. by its authorised person/Directors/CEO Sanchit Gaurav

 

2.Sri. Sanchit Gaurav CEO and Director

   M/s Sarvaloka Services-On-Call Private Ltd,

   (housejoy)

   L-371, 5^th Main, 6^th Sector, HSR Layout,

   Bangalore 560 102.

 

3.Mr. Tibin Antony,

   Vice-President-CE, Director,

   M/s Sarvaloka Services-On-Call Private Ltd,

   (housejoy)

   L-371, 5^th Main, 6^th Sector, HSR Layout

   Bangalore 560 102

 

4.Mr. Simmi Narania Senior Manager,

   M/s Sarvaloka Services-On-Call Private Ltd,

   (housejoy),

   L-371, 5^th Main, 6^th Sector, HSP Layout,

   Bangalore 560 102.

 

 

5.Mrs. Swapnavi,

Authorised Signatory for

M/s Sarvaloka Services-On-Call Private Limited

No.123 T.T.K. Road, Alwarpet,

Chennai-600 018.                                                   ...  Opposite Parties

 

******

Counsel for the Complainant          : M/s. Ravichandran

Counsel for the Opposite Parties     : Exparte

 

On perusal of records and after having heard the oral arguments of the Counsel for the Complainant, we delivered the following:

ORDER

Pronounced by the President Tmt. B. Jijaa, M.L.,

(i)   The Complainant has filed this complaint as against the Opposite Parties under section 35 of the Consumer Protection Act, 2019 and prays to direct the Opposite Parties to refund the excess sum of Rs.6,23,000/- to the Complainant that was received by the Opposite Parties for the work not done by them, together with interest @12% p.a from the last date of payment made in March 2021 to till the date of realization and to pay a sum of Rs.15,00,000/- towards compensation for the mental agony caused to the Complainant, for the deficiency in service and unfair trade and unethical trade practice followed by the Opposite Parties along with cost.

I.    The averments of Complaint in brief are as follows:- 1.   The Complainant is having one vacant house site at Plot No.33, Superb Avenue, 3rd Street, Pudupakkam Village, Thirupporur Taluk, Chengalpattu District. The Complainant approached the Opposite Parties at their branch office at Chennai for constructing an independent house on the above said land. The Opposite Parties have also agreed to construct an independent house for the Complainant. Thereafter, the Opposite Parties demanded the Complainant to pay a sum of Rs.3,00,000/- towards Booking Advance for entering into a construction agreement. As such the Complainant has paid the said sum of Rs.3,00,000/- to the 1stOpposite Party through NEFT Transfer on 02.07.2020. Later on a construction service agreement was entered into between the Opposite Parties and the Complainant on 14.9.2020 in Chennai Branch Office at Alwarpet for constructing an individual house on the above said land mentioned in Pudupakkam Village, Thirupporur Taluk, Chengalpattu District. As per the above said construction service agreement, the total cost of construction for the individual house having a super built up area of 1439 square feet is Rs.25,89,392.56/. The Opposite Parties have also demanded 15% of the above said amount for starting the construction work. As per the terms of the said Agreement, the Complainant has paid amounts, totaling a sum of Rs.8,03,110/- to the 1st Opposite Party. As per the Construction Service Agreement dated 14.9.2020, the project has to be started on 25.9.2020 and to be completed in June 2021. The grace period for the completion of constructions, in case of unforeseen reasons, is three months, i.e., the construction has to be completed before September 2021. But the Opposite Parties did not start the construction work even after a period of four months. Hence on 04.01.2021, the Complainant asked the Opposite Parties to cancel the Service Agreement and further demanded the Opposite Parties to return the money paid by the Complainant. Thereafter the Opposite Parties started the work and it was continued only for two weeks. Again the Opposite Parties demanded further payment for purchasing materials for the next set of work. Immediately the Complainant has paid a sum of Rs.97,000/-. But no material was delivered nor any work was done in the site as per the Master Project Schedule that is shared with the Complainant. The estimated cost of construction done by the Opposite Parties upto May 2021 is around a sum of Rs.1,80,000/-, but the Opposite Parties have received a total sum of Rs.8,03,110/-. The Opposite Parties have failed to fulfil the terms and conditions of the main agreement dated 14.9.2020. The Opposite Parties have defaulted and failed to provide the service as per the terms of service agreement which amounts to deficiency of service. So, the Complainant has issued a Notice of Termination of the Service Agreement dated 14.9.2020 to the Opposite Parties through various e-mails which are all not replied by the Opposite Parties. As per the Valuation done by the government licensed Surveyor, the work has been done for a value of Rs.1,80,000/-. The Complainant has mentioned this amount to the Opposite Parties citing the value of construction done by them and demanded the Opposite Parties to return the balance money. However the Opposite Parties failed to refund the money. Hence the complaint. II. The Complainant submitted his Proof Affidavit and Written Arguments. On the side of the Complainant, documents were marked as  Ex.A-1 to Ex.A-5.

III. The Opposite Parties  set ex parte:

        Notice was sent to the opposite parties and was duly served to the opposite parties. Despite the notice being served to the Opposite Parties failed to appear before this Commission either in person or by an Advocate on the hearing date and not filed any written version on their side.  Hence the opposite parties 1,2 & 3 were called absent and set ex-parte on 27.05.2022. The 4^th opposite party was set ex-parte on 30.06.2022 and the 5^th Opposite Party was set exparte on 06.09.2022. Subsequently, the case was proceeded to be heard on merits.

Points for Consideration:-

1. Whether there is deficiency in service on the part of the Opposite Parties?

2. Whether the Complainant is entitled for the reliefs claimed?

3. To what other reliefs the Complainant is entitled to?

Point No.1:

2.     Upon perusal of Ex.A-1 it is seen that the Complainant had entered into a Service Agreement with the Opposite Party for construction of property situated at at Plot No.33, Superb Avenue, 3^rd Street, Pudupakkam Village, Thirupporur Taluk, Chengalpattu District- 603 103. The Opposite Party had agreed to construct super built area of 1439 sq.ft at Rs.1615/- per sq.ft, with a total cost of construction at Rs.25,89,392.56. The Opposite Party had also agreed to commence the construction on 25.09.2020 and to complete the project by June 2021, with 3 months grace period till September 2021. Accordingly the Complainant, had paid a sum of Rs.3,00,000/- towards booking charges and a total sum of Rs.8,03,110/-. Even after receiving the sum of Rs.8,03,110/-, as evidenced by Ex.A-1, the Opposite Parties  have failed to put up construction of the house as agreed. Thereafter from January 2021 to October 2021 there was  exchange of e mails between the Complainant and the Opposite Parties regarding the construction activities and for refund of the amount paid by the Complainant as per Ex.A-4. As there was no progress in the construction activites  the Complainant himself wanted to continue and complete the construction of the house. Hence as per Ex.A-5 the Complainant had sent a legal notice expressing his intention to make alternative arrangement for construction and had cancelled the Service Agreement dated 14.09.2020, Ex.A-2 entered between the Complainant and the Opposite Parties  and sought for repayment of amount along with damages. The Complainant before commencing of construction had obtained a stage Valuation Certificate in respect of his property, who valued the cost of construction at Rs.1,80,000/- as per Ex.A-3, the Valuation Report issued by the Approved Value dated 19.06.2021.

3.     On careful perusal of records and submissions made by the Counsel for Complainant, it is clear that the Service Agreement dated 14.09.2020 was entered between the Complainant and the Opposite Parties at Chennai and hence this Commission has got territorial jurisdiction to decide the case. Clause 13 in of the Service Agreement dated 10.08.2020 confers the Court in Bengaluru to decide disputes concerning the agreement. The existence of such a clause does not preclude this Commission from entertaining the complaint, as part of cause of action had arisen in the branch office of the Opposite Party at Chennai, which is within the jurisdiction of this Commission.

4.     Further the act of the Opposite Parties in failing to put up construction of house as agreed in the Service Agreement dated 14.09.2020   even after receipt of 35% of the cost of construction from the Complainant and by not giving proper response to various communications of the Complainant and having failed to act as per the terms and conditions of the Service Agreement by putting up construction of house on the site belonging to the Complainant and by not refunding the amounts collected from the Complainant, after stoppage of construction work, even after several requests made by the Complainant to refund the money, amounts to deficiency in service. Accordingly, Point No.1 is answered in favour of the Complainant.

Point No.2 and 3:

5.     As discussed and decided Point No.1 against the Opposite Parties, the Opposite Parties are  liable to pay a sum of Rs.6,23,110/-, which is the  balance amount payable after deduction of Rs.1,80,000/- towards the work done by the Opposite Parties out of the total payment of Rs.8,03,110/- made by the Complainant with interest at the rate of 9% p.a from the date of filing of the complaint till the date of realization and to pay a sum of Rs.1,00,000/- as compensation for the deficiency in service and mental agony caused to the Complainant along with cost of Rs.5,000/-. Accordingly, Point Nos.2 and 3 are answered.

In the result, the complaint is allowed in part. The Opposite Parties 1 to 5 are jointly and severally  directed to pay a sum of Rs.6,23,000/- (Rupees Six Lakh Twenty Three Thousand Only) as claimed by the Complainant with interest at the rate of 9% p.a from the date of filing of the complaint till the date of realization and to pay a sum of Rs.1,00,000/- (Rupees One Lakh Only) as compensation for the deficiency in service and mental agony caused to the Complainant along with cost of Rs.5,000/- (Rupees Five Thousand Only) to the Complainant, within 8 weeks  from the date of receipt of the order, failing which the above said amount of Rs.6,23,000/- shall carry interest @12% p.a from the date of the  order till the date of realization.                                                                                                                                                                                                                                                                                                                                                                                                                 

          In the result this complaint is allowed in part. 

          Dictated to Steno-Typist, transcribed and typed by her, corrected and pronounced by us in the Open Commission, on 9^th March 2023.

 

S. NANDAGOPALAN               T.R. SIVAKUMHAR                   B.JIJAA

         MEMBER II                         MEMBER I                        PRESIDENT

 

List of documents filed on the side of the Complainant:-

Ex.A1	17.04.2021	Receipt for the total amount of Rs.8,03,110/- issued by the 1stOpposite Party to the Complainant towards booking advance & further construction cost
Ex.A2	14.09.2020	Service agreement for construction of individual house between complaint and First Opposite Party
Ex.A3	12.06.2021	Valuation certificate issued by the Approved Valuer
Ex.A4	-	Batch  of emails sent to Opposite Parties
Ex.A5	21.05.2021	Notice sent by the Complainant to the Opposite Parties through his advocate

 

*****

List of documents filed on the side of the Opposite Parties:-

NIL

 

S. NANDAGOPALAN               T.R. SIVAKUMHAR                    B.JIJAA

         MEMBER II                       MEMBER I                         PRESIDENT