Tamil Nadu

StateCommission

CC/85/2015

S.Palani Babu, S/o Subramani - Complainant(s)

Versus

M/s.R.R.P. Housing Pvt Ltd, Rep by its Director, P.Thamizg - Opp.Party(s)

M/s.A.Vivekanandhan

13 Dec 2021

ORDER

IN THE TAMILNADU STATE CONSUMER DISPUTES REDRESSAL COMMISSION, CHENNAI.

BEFORE         Hon’ble Thiru. Justice R.SUBBIAH                            PRESIDENT

                         Tmt. Dr. S. M. LATHA MAHESWARI                           MEMBER

C.C.No.85/2015

 FRIDAY, THE 13^TH  DAY OF DECEMBER 2021                                        

S. Palani Babu,

S/o. Mr. Subramani,

No.1/64, Pillaiyar Koil Street,

Vendranthangal,

Katpadi,

Vellore – 632 059.                                                              ::                         Complainant

-Versus-

M/s. R.R.P. Housing Private Limited,

Represented by its Director

P. Thamizg,

R.R.P. Tower,

No.12/6, First Street,

Achudhan  Nagar,

Ekkattuthangal,

Chennai – 600 097.                                                                    ::    Opposite Party                                                                           

 

Counsel for the complainant               :    M/s. A. Vivekananthan

Opposite party                                    :    Exparte

 

              This complaint having come up for final hearing before us on 18.11.2021  and on hearing the arguments of complainant and upon perusing the material records submitted by the complainant and the opposite party remaining absent was set exparte and this Commission made the following:-

ORDER

TMT. Dr. S.M. LATHA MAHESWARI,   MEMBER

               This complaint has been filed by the complainant under section 17 (1) (a) (i) of the Consumer Protection Act, 1986 alleging deficiency in service and unfair trade practice on the part of the opposite party along with the prayer to refund a sum of Rs.16,56,812/- and the amount of EMI paid by the complainant along with interest and to pay a compensation of Rs.10,00,000/-  and with cost of the complaint.

1. The gist of the complaint allegations is as follows;-   

The complainant booked a flat with the opposite party who is a promoter by profession and was promoting a property belonging to one Padmanabhan situated at No.15, Kannivakkam Village, Chengalpattu Taluk, Kancheepuram comprising survey No.156/1 measuring about 0.70.78 cents.  The flat offered was built up in the first floor Flat No.2 measuring about 1036 sq. ft.  along with undivided share of land measuring 564 sq. ft. The total sale construction cost for fixed at Rs.34,70,308/-.  The complainant also agreed to purchase another flat in ground floor with build up area measuring about 925 sq. ft along with UDS measuring 504 sq. ft.  For a total sale consideration of Rs.31,26,514/-.  In pursuance of the same, the sale agreement was entered with the oxner with Mr. Padmanaban on 01.06.2013 towards purchase of 564 sq. ft and 504 sq. ft of land separately.   The construction agreement was also entered with the complainant and opposite party herein on the same day i.e. 01.06.2013.   The complainant paid Rs.1,50,000/- vide cheque dated:30.05.2013 and Rs.50,000/- vide cheque dated:09.07.2013 drawn on HDFC bank Kadpadi Branch.  Rs.2,00,000/- was paid through net transfer on 31.07.2013 and Rs.2,86,514/- was paid in cash on 14.08.2013.  Thus, totally Rs.6,86,514/- was paid towards purchase of flat No.1, towards purchase of flat No.2, the complainant paid Rs.1,50,000/- vide cheque dated: 30.05.2013 and Rs.50,000/- vide cheque dated:09.07.2013, Rs.3,00,000/- by cheque dated:01.08.2013 all cheques drawn on HDFC bank Kadpadi Branch.  By cash Rs.2,00,000/- was paid on 06.08.2013 and Rs.2,70,308/- was paid on 22.08.2013.   Thus, totally Rs.9,70,308/- was paid towards flat No.2.  As the complainant was working in Saudi Arabia he spent huge amount to come over to Chennai towards purchase of the said lands.  Loan was also applied with M/s. LIC Housing Finance Ltd., Teynampet and a loan amount of Rs.26,00,000/- for both flats was sanctioned by the LIC Housing Finance Ltd., Chennai and the EMI was fixed as Rs.28,407/-. It was agreed that the opposite party should complete the construction of flats within 24 months from 01.06.2013 with a grace period of 3 months.   Totally, the complainant had paid Rs.42,62,812/- out of Rs.65,96,822/-. Whenever, the complainant enquired about the project on his visit to the country he could see that the progress in construction was at the same level i.e. it was only in the foundation level.  The opposite party on enquiry by the complainant with regard to the construction, gave evasive reply and insisted the complainant to purchase villa in some other place which was not agreeable by the complainant.   Though the construction was not progressed the EMI was deducted periodically from the complainant for about 14 months.   The complainant cancelled the loan agreement he found that the construction agreement was renewed without his knowledge by manipulation.  Thus, he sent a legal notice to the opposite party dated:11.03.2015 for which, the opposite party sent reply dated:09.04.2015 with false and baseless averments. 

Thus the complainant stated that having received Rs.6,56,812/- as early in between May 2013 to August 2013 and having received the loan amount of Rs.26,00,000/- the opposite party has not constructed the flats as admitted and committed deficiency in service.  Based on the assurance given by the opposite party the loan agreement was cancelled that they will return back the EMI paid by the complainant.  Though the opposite party cleared the loan amount in LIC Housing Finance Ltd. deliberately failed to refund the amount of Rs.16,56,812/- and Emi amount paid by the complainant.  Thus, the complaint was filed alleging deficiency in service and unfair trade practice along with the prayer to direct the opposite party to refund the sum of Rs.16,56,812/- and the EMI amount of Rs.3,12,340/- with interest and Rs.10,00,000/- towards compensation and cost of the complaint. 

The opposite party did not file written version within the mandatory period and filed petition to condone the delay in filing the written version however the same was dismissed for default.  Hence, the opposite party was called and set ex-parte on 20.07.2017.  The complainant filed proof affidavit and marked documents Ex.A1 to Ex.A42.

5.         The points for consideration is:-

Whether the deficiency in service on the part of the opposite party was proved by the complainant and if so, to what relief he is entitled?

6.         Point:-

Admitted facts:

The following documents were filed by the complainant  

1. The Sale Agreement dated:01.06.2013 for purchase of 504 sq. ft. with respect to Flat No.1 was marked as Ex.A1
2. The Construction Agreement dated:01.06.2013 with respect to Flat No.1 was marked as Ex.A2.
3. The Sale Agreement dated:01.06.2013 for purchase of 564 sq. ft. with respect to Flat No.2 was marked as Ex.A3
4. The Construction Agreement dated:01.06.2013 with respect to Flat No.2 was marked as Ex.A4.
5. The receipt issued by the opposite party for Rs.2,00,000/- paid on 06.08.2013 was marked as Ex.A5
6. The receipt for Rs.2,86,514/- dated:14.08.2013 marked as Ex.A6
7. The receipt for Rs.2,70,308/- dated:22.08.2013 marked as Ex.A7
8. The total receipt issued by the opposite party towards amount paid for Flat No.1 dated:26.08.2013 was marked as Ex.A8
9. The total receipt issued by the opposite party towards amount paid for Flat No.2 dated:26.08.2013 was marked as Ex.A9
10. The letters issued by the HDFC Bank dated:12.09.2013 was marked as Ex.A10 & Ex.A11
11. The statement of accounts issued by the HDFC Bank dated:01.10.2013 was marked as Ex.A12.
12. The e-mail sent by the complainant on various dates from 04.10.2013 to 30.03.2014 were marked as Ex.A12 to Ex.A16
13. E-mail sent by the opposite party on 31.03.2014 & 04.04.2013 marked as Ex.A17 & Ex.A18
14. The various e-mail correspondences between the complainant and the opposite party and to the LIC were marked as Ex.A19 to Ex.A40.
15. The legal notice sent by the complainant dated:11.03.2015 was marked as Ex.A41
16. The reply notice sent by the opposite party dated:09.04.2015 was marked as
    Ex.A42.

Heard the Counsel for complainant.  It is submitted by the Counsel for the complainant that on trust and belief that the opposite party is a professional and noble builder the complainant agreed for the purchase of 2 flats promoted by the opposite party in the site belonging to one Mr. Padmanaban and in furtherance has paid various amounts towards the agreed total sale consideration.  Though the sale agreement and the construction agreement was entered as early as 01.06.2013 as evidenced by Ex.A2 & Ex.A4 the construction was not completed until 2014 which compelled the complainant to cancel the purchase of the flats.  Hence, the complaint was filed for refund of the amount. 

On perusal of the document submitted by the complainant and on hearing the submissions made by the Counsel for the complainant we could see that the complainant had agreed for the purchase of flats as offered by the opposite party in the project developed by his in the property belonging to one Mr. Padmanaban.  In furtherance, the sale agreement for undivided share of land and the construction agreement was also entered between the concerned parties.  For the payments made by the complainant valid receipts marked as Ex.A5 to Ex.A9 was issued by the opposite party.      Further the complainant has also submitted that he had availed housing loan from LIC Housing Finance Ltd.  and monthly EMI of Rs.28,407/- was deducted from the complainant’s account through ECS mode.  The document Ex.A12, the statement of accounts issued by the HDFC Bank also support the case of the complainant  that he had advanced payments to the opposite party.  The email correspondence between the parties shows that for the enquires made by the complainant with regard to the construction of the flats the opposite party did not give any satisfactory reply to the complainant.   It is seen that the complainant had cancelled the purchase proposal of the flats and sought for refund of the amount paid by him and the EMIs deducted by the LIC Housing Finance Ltd.   Thus, we could see that inspite of receiving money from the complainant towards the construction of the flats directly and also through loan amounts from the LIC Housing Finance Ltd. Without constructing and handing over the flats as per the agreed terms in the construction agreement clearly amounts to deficiency in service on the part of the opposite party.  Further, the opposite party without performing their part of obligation and not giving satisfactory explanation for the delayed construction offering the complainant to take alternate villa clealy amounts to unfair trade practice.  Thus, we conclude that the complainant had proved that the opposite party had committed deficiency in service and unfair trade practice.

Coming to the relief to be granted to the complainant it is admitted by the complainant that the opposite party had repaid the loan amount received by them from LIC Housing Finance Ltd and only Rs.16,56,812/-  was the balance amount to be paid by the opposite party.   Towards the EMI amount of Rs.3,12,340/- deducted by the LIC Housing Finance Ltd. was due t be paid by the opposite party.  The complainant also has filed documents the statement of accounts issued by the HDFC Bank for the period 01.01.2013 to 31.12.2015  to prove that the EMI amounting to Rs.3,12,340/- was paid as EMI.   Therefore, we are of the view that the complainant was entitled to the said amount to be paid by the opposite party.  We could see that the complainant was put to severe mental agony and hardship from the year 2013 to 2015 by the opposite party in not fulfilling the agreed terms as per the construction agreement with regard to the purchase of flats.   the complainant was thus entitled to be compensated in terms of money for the hardship he suffered due to deficiency in service by the opposite party.   In such facts and circumstances, we order Rs.2,00,000/- to be paid as compensation.  The point is thus answered accordingly and we partly allow the complaint.

In the result we order as follows:-

1. Opposite party is directed to refund the amount of Rs.16,56,812/- along with the EMI amount of Rs.3,12,340/- to the complainant. 
2. Opposite party is directed to pay a compensation of Rs.2,00,000/-
3. That the amount mentioned in clause a) to be paid within 6 weeks from the date of receipt of complaint failing which, the amounts will carry 9% interest from the date of complaint till realisation.
4. That cost of Rs.10,000/- to be paid towards litigation cost.

 

 

S.M.LATHAMAHESWARI                                                                           R.SUBBIAH

         MEMBER                                                                                             PRESIDENT

 

List of Documents filed by the complainant:-  

00000000Ex.A1	01.06.2013	Copy of Sale Agreement for purchase of 504 sq. ft. with respect to Flat No.1
Ex.A2	01.06.2013	Copy of Construction Agreement with respect to Flat No.1
Ex.A3	01.06.2013	Copy of  Sale Agreement for purchase of 564 sq. ft. with respect to Flat No.2
Ex.A4	01.06.2013	Copy of Construction Agreement with respect to Flat No.2
Ex.A5	06.08.2013	Copy of the receipt issued by the opposite party for Rs.2,00,000/-
Ex.A6	14.08.2013	Copy of  the receipt for Rs.2,86,514/-
Ex.A7	22.08.2013	Copy of the receipt for Rs.2,70,308/-
Ex.A8	26.08.2013	The total receipt issued by the opposite party towards amount paid for Flat No.1
Ex.A9	26.08.2013	The total receipt issued by the opposite party towards amount paid for Flat No.2
Ex.A10	12.09.2013	Copy of the letter issued by the HDFC Bank
Ex.A11	12.09.2013	Copy of the letter issued by the HDFC Bank
Ex.A12	01.10.2013	Copy of statement of account
Ex.A13	04.10.2013	Copy of email sent by the complainant
Ex.A14	07.10.2013	Copy of email sent by the complainant
Ex.A15	07.10.2013	Copy of email sent by the complainant
Ex.A16	30.03.2014	Copy of email sent by the complainant
Ex.A17	31.03.2014	Copy of email sent by the opposite party
Ex.A18	04.04.2014	Copy of email sent by the opposite party
Ex.A19	23.05.2014	Copy of email sent by the complainant
Ex.A20	16.07.2014.	Copy of email sent by the complainant
Ex.A21	31.07.2014	Copy of email sent by the complainant to LIC
Ex.A22	01.08.2014	Copy of email sent by the complainant to LIC
Ex.A23	01.08.2014	Copy of email sent by LIC Housing
Ex.A24	02.08.2014	Copy of email sent by the opposite party
Ex.A25	03.08.2014	Copy of email sent by the complainant
Ex.A26	17.08.2014	Copy of email sent by the complainant
Ex.A27	21.08.2014	Copy of email sent by the complainant
Ex.A28	27.08.2014	Copy of email sent by the complainant
Ex.A29	21.10.2014	Copy of email sent by the complainant
Ex.A30	10.12.2014	Copy of email sent by the complainant
Ex.A31	12.12.2014	Copy of email sent by the opposite party
Ex.A32	17.12.2014	Copy of email sent by the complainant
Ex.A33	17.12.2014	Copy of email sent by the opposite party
Ex.A34	18.12.2014	Copy of email sent by the complainant
Ex.A35	19.12.2014	Copy of email sent by the opposite party
Ex.A36	19.12.2014	Copy of email sent by the complainant
Ex.A37	22.01.2015	Copy of email sent by the complainant
Ex.A38	26.01.2015	Copy of email sent by the complainant
Ex.A39	13.02.2015	Copy of email sent by the complainant
Ex.A40	14.02.2015	Copy of email sent by the complainant
Ex.A41	11.03.2015	Copy of notice sent by the complainant
Ex.A42	09.04.2015	Copy of reply sent by the opposite party

 

 

S.M.LATHAMAHESWARI                                                                           R.SUBBIAH

         MEMBER                                                                                             PRESIDENT