Tamil Nadu

South Chennai

CC/62/2015

M/s.Anuradha Baala - Complainant(s)

Versus

M/s.Vasavi Housing - Opp.Party(s)

M/s.Lenins Bhagya

26 Oct 2015

ORDER

                                                                          Date of Complaint  : 30.01.2015

                                                                 Date of Order         : 26.10.2015

DISTRICT CONSUMER DISPUTE REDRESSAL FORUM, CHENNAI (SOUTH)

2^nd Floor, Frazer Bridge Road, V.O.C. Nagar, Park Town, Chennai-3

 

PRESENT :    THIRU. B. RAMALINGAM, M.A.M.L.,                  :  PRESIDENT                     

                     TMT.K. AMALA, M.A. L.L.B.,                                :  MEMBER – I

                     DR.T.PAUL RAJASEKARAN, M.A PGDHRDI, AIII,BCS : MEMBER II

                                                     

C.C.No. 62 / 2015

THIS  MONDAY  26^th  DAY OF  OCOTBER 2015

1. Mrs. Anuradha Baala,

W/o. Mr. Ravi Baala,

2. Mr.Ravi Baala,

S/o. G. Haribabu

Both residing at Old No.4,

New No.8B, Karumari Street,

Devi Nagar, Car shed Complex,

Chennai – 109.                                                         .. Complainant.

                                      - Vs-

1.  M/s. Vasavi Housing,

Rep. by its Authorized Signatory,

Regd. Office No.8A Kandaswamy Street,

Raja Annamalaipuram,

Chennai 600 028.

 

2. Mr. P.B. Krishnaprasad,

Director,

M/s. Vasavi Housing

Regd. Office No.8A Kandaswamy Street,

Raja Annamalaipuram,

Chennai 600 028.

3. M/s. Vasavi Meppur Construction P. Ltd.,

Rep. by its Authorized Signatory,

NO.8, Vinayakam Avenue,

Rajiv Gandhi Salai,

Okkiyampet, Chennai 600 097.                                   .. Opposite parties.		.. Opposite party.

For the complainant                     :   M/s. Lenin & Bhagya & another      

For the opposite parties                         :   Exparte   

 

           Complaint under section 12  of the Consumer Protection Act, 1986 for a direction to the opposite party  to  return the advance amount of Rs.3,52,280/- with interest and also to pay a sum of Rs.6,00,000/- towards compensation and mental agony to the complainant.  

ORDER

THIRUMATHI. K.AMALA,   ::    MEMBER-I

Even after receipt of the notice, the opposite party did not file written version.  Hence, the opposite party was set exparte on  24.4.2015.        The complainants filed proof affidavit.  Exhibits A1 to A13  were marked on the side of the complainant.  

2.     Perused the complaint, and the documents Ex.A1 to Ex.A13  filed by the complainant  and proof affidavit and the entire C.C. records and considered the arguments of the complainant’s counsel.    

3.     The 1^st complainant is the wife of the 2^nd complainant and the allottee of the flat in dispute. The 1^st complainant entered into an agreement with the opposite parties for purchase of flat by signing an agreement of construction and an agreement for sale.   The 1^st complainant paid an initial advance payment of Rs.2,00,000/- on 9.11.2013 by way of cheque and another advance payment of Rs.1,52,280/- on 23.1.2014 for which receipt were issued by the opposite parties.  The complainants requested the opposite parties for necessary documents to apply for loan in the bank.  But the opposite parties refused to hand over required papers stating that they did not get the approval for construction from the local body.   Till January 2014 the opposite parties did not provide the required documents as such the complainants sought for return of the advance amount.   In the month of April 2014 the opposite parties stated that they were unable to obtain license from the local panchayat and hence they could not commence any work.   The complainant insisted the opposite parties for refund of the advance paid, since he had taken a loan with 14.5% interest from the bank for payment of advance amount.   The opposite parties had already committed to the complainant that they shall return the advance amount if they failed to perform their duties as assured by them.   

4.     The complainants state that since the opposite parties failed to refund the advance amount,  they issued legal notice to the opposite parties on 18.10.2014 which was acknowledged by the opposite parties but failed to send any reply.    Hence the complainants filed the above complaint for refund of the advance amount of Rs.3,52,280/- along with interest and compensation and cost of  the complaint.   

5.     It is evidenced through the receipts issued by the opposite parties Ex.A1 and Ex.A2 that the complainants paid a sum of Rs.2,00,000/- on 9.11.2013 and Rs.1,52,280/- on 24.1.2014 as advance payment on the agreement entered between 1^st complainant and opposite parties.  

6.     Since the opposite parties failed to furnish the required documents to get loan sanction from the bank the complainants requested the opposite parties to refund the advance amount paid.  But the opposite party replied that they have not received the plan approval from the Panchayat.   The email transactions between the complainants and the opposite parties and also between the complainant ‘s counsel and the opposite parties and the other documents filed by the complainants proves that the opposite parties caused delay in proceeding with the construction.  The opposite parties never produced any document to justify that they had taken steps to obtain Panchayat approval  but they admitted that they would return the advance amount paid by the complainants in their email.  Whereas the opposite party failed to refund the advance amount even after receipt of legal  notice. 

7.     Though it is stated in Clause-8 (b) of the construction agreement Ex.A4  that the opposite party shall complete the project within 24 months from the date of receipt of the plan sanction, it reveals  from the records that the opposite party had not taken any steps for obtaining plan sanction.  Further though the opposite party stated in the email to the complainant that the complainant has to send cancellation letter for repayment of advance the reply email sent by the complainant as well their counsel stating that their reply may be treated as cancellation for refund is acceptable, since the opposite party had not sent any reply denying the same.     

8.     The above facts, records and Ex.A11 proves that the complainant paid the advance amount after obtaining loan from the bank on interest. The photos Ex.A10 also proves that the opposite party have not commenced the construction work.   As such it proves that after paying huge amount to the opposite party the complainants suffered loss and were disappointed by the act of the opposite party.   It is the duty of the opposite party to obtain sanction from the statutory authority and the complainant cannot suffer due to delay caused by the opposite parties and as such claiming the refund along with interest is justifiable.    Moreover the complainants had lost opportunity of getting a flat and suffered physical hardship as well as mental agony as such they are entitled for compensation.   Hence the contention of the complainants that the opposite parties have committed deficiency of service is acceptable.

9.     The opposite parties also failed to appear before this forum to defend the case.  Further the contention of the complainants that the opposite parties have benefited by retaining the advance amount paid by the complainants is also acceptable.  Since the payments were made by the complainants through cheque  it would take atleast 10 days time for clearance.   As such the opposite parties  are  liable to refund the advance amount of Rs.2,00,000/- along with interest at the rate of 12% p.a. from 20.11.2013  and Rs.1,52,280/- along with interest at the rate of 12% p.a. from 3.2.2014 to till the date of payment. 

10.    Since the compensation claimed by the complainant is exorbitant the  opposite parties are directed to pay a sum of Rs.50,000/- as just and reasonable compensation for mental agony and also to pay a sum of Rs.2,500/- as litigation charges to the complainants.

In the result, the complaint is partly allowed.  The opposite parties are jointly and severally directed to refund the advance amount of Rs.2,00,000/- (Rupess two lakhs only) along with interest at the rate of 12% p.a. from 20.11.2013  and Rs.1,52,280/- (Rupees one lakh fifty two thousand two hundred and eighty only) along with interest at the rate of 12% p.a. from 3.2.2014 to till the date of payment and also directed to pay a sum of Rs.50,000/- (Rupees fifty thousand only) as compensation and also to pay a sum of Rs.2,500/- (Rupees two thousand and five hundred only) as litigation charges to the complainant within six weeks from the date of this order failing which the compensation amount of (Rs.50,000/) shall carry interest at the rate of 9% per annum from the date of order  passed till the date of realization.

                Dictated directly by the Member-I to the Assistant, transcribed and computerized by her, corrected by the Member-I and pronounced by us in the open Forum on this the 26^th      day of  October   2015.

 

 

MEMBER-I                                        MEMBER-II                                           PRESIDENT.

 

 

Complainant’s Side documents :

Ex.A1-  9.11.2013 - Copy of first installment payment receipt.

Ex.A2- 24.1.2013  - Copy of 2^nd installment payment receipt.

Ex.A3- 9.11.2013  - Copy of offer letter from the opposite parties.

Ex.A4- 17.1.2014  - Copy of Construction Agreement.

Ex.A5- 15.7.2014  - Copy of email.

Ex.A6- 28.8.2014  - Copy of refund letter.

Ex.A7-         -       - Copy of email.

Ex.A8- 18.10.2014         - Copy of Legal notice  

Ex.A9-         -      - Copy of Acknowledgment receipt.

Ex.A10-       -       - Copy of Photos.

Ex.A11-       -       - Copy  of PNB Pass book details.

Ex.A12-10.12.2014        - Copy of letter from  Punjab National bank to complainants.

Ex.A13- 21.9.2014 –Copy of medical bill.

 

 

Opposite parties’ side documents: -    .. Nil ..   (exparte)

 

 

 

MEMBER-I                                         MEMBER-II                                          PRESIDENT.