NCDRC

NCDRC

CC/3636/2017

REETA SRIMAL - Complainant(s)

Versus

PARSVNATH DEVELOPERS LIMITED & ANR. - Opp.Party(s)

MR. ARVIND BHATT, MR. KUBER GIRI,MR. UMANG VERMA, SUMIT BHADANA,RICHA CHAUDHARY & SAGAR CHAUHAN

06 Oct 2022

ORDER

NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION
NEW DELHI
 
CONSUMER CASE NO. 3636 OF 2017
 
1. REETA SRIMAL
Wife of Shri Ajit Chand Srimal, Resident of B-4 Sarita Vihar,
New Delhi - 110 076.
...........Complainant(s)
Versus 
1. PARSVNATH DEVELOPERS LIMITED & ANR.
Through Its Managing Director, Having its Registered Office at Parsvnath Metro Tower, Near Shahdara Metro Station, Shahdara,
Delhi - 110 032.
2. Parsvnath Hessa Developers (P) Ltd.
Through Its Managing Director, Having Its Registered Office at Parsvnath Metro Tower, Near Shahdara Metro Station, Shahdara,
Delhi - 110 032.
...........Opp.Party(s)

BEFORE: 
 HON'BLE MR. JUSTICE RAM SURAT RAM MAURYA,PRESIDING MEMBER

For the Complainant :
Mr. Sagar Chauhan, Advocate
: Mr. Sumit Bhadana, Advocate
: Mr. Pranoy Sharma, Advocate
For the Opp.Party :
Mr. Prabhakar Tiwari, Advocate
: Ms. Deepshikha Mishra, Advocate

Dated : 06 Oct 2022
ORDER

1.      Heard Mr. Sagar Chauhan, Advocate, for the complainant and Mr. Prabhakar Tiwari, Advocate, for the opposite parties.

2.      Above complaint has been filed, for directing the opposite parties to (i) handover possession of Flat No.B-6-1002 and two car parking space, in the building “Parsvnath Exotica”, complete in all respect as per specifications and amenities with “Occupation Certificate”  and execute conveyance deed in favour of the complainant forthwith, (ii) pay delayed compensation in the form of interest @18% per annum on the deposit of the complainant, from 28.11.2009 till delivery of possession, (iii) pay Rs.500000/- as the compensation for mental agony and harassment, (iv) to bear increase in all taxes after 28.11.2009, (v) pay the costs of litigation; and (vi) any other relief which is deemed fit in the facts and circumstances of the case. In alternative it has been prayed that in case, the opposite parties failed to deliver possession till 30.06.2018, they will be directed to refund entire amount of Rs.18442296.64 with interest @24% per annum, from the date of respective deposit till the date of payment.

3.      The complainant stated that Parsvnath Developers Limited and Parsvnath Hessa Developers Limited (the opposite parties) were companies, registered under the Companies Act, 1956 and engaged in the business of development and construction of group housing projects. The opposite party-1 launched a group housing project in the name of “Parsvnath Exotica”, at village Wazirabad, Sector-53, Gurgaon, in the year 2006 and made wide publicity. The complainant booked a 4BR flat on 07.07.2006 and deposited Rs.28/- lacs. The complainant deposited Rs.1861250/- + Rs.400000/- as charges for two car parking space on 13.11.2006. The opposite party-1 allotted Flat No.B-6-1002 and executed Flat Buyer Agreement dated 28.11.2006 in favour of the complainant of Flat No.B-6-1002, admeasuring 3390 sq.ft. at the rate of Rs.5500/- per sq.ft., basic price of Rs.18645000/-+ Rs.400000/- for two covered Car Parking spaces, in “Parsvnath Exotica”. The complainant opted for “Construction Linked Payment Plan”. In the end of 2009, the project was handed over to Parsvnath Hessa Developers (P) Limited. As per demand of opposite party-2, the complainant deposited Rs.1912510.87 on 29.04.2011, Rs1912510.88 on 18.07.2011, Rs.1530008.71 on 19.11.2011, Rs.1530008.70 on 15.03.2012, Rs.1537690.44 on 15.05.2012, Rs1546908.52 on 01.10.2013 and Rs.1515968.52 on 09.12.2013 (total Rs.18242296.64). At the time of booking opposite party-1 informed that possession would be delivered within three years. As per clause-10(a) of the agreement, the construction of the flat had to be completed within 36 months from the date of commencement of construction of particular block with grace period of six months. But the possession was unreasonably delayed for about 11 years. The complainant visited the site on 31.03.2009 and found very slow progress in construction. Then the complaint was filed on 08.12.2017, alleging deficiency in service.

4.      The opposite party filed its written reply on 16.07.2018 and contested the case. The material facts relating to the project, allotment of the flat to the complainant and deposits made by her, have not been disputed. The builder stated that Real Estate sector was facing problems like (i) Lack of adequate sources of finance, (ii) Shortage of labours (iii) Rising of the costs of materials and labour, (iv) Obtaining various approvals from Government departments, (v) Global slowdown of economy since 2008, which seriously affected foreign investment in real estate sector and (vi) Default in payment of instalment by various allottees. The owners of the land obtained licences from Director, Town & Country Planning Haryana, for development of group housing project. Through various development agreements with the owners of the land, M/s. Parsvnath Developers Limited acquired development right. The builder submitted Layout Plan of the project for approval, which was approved on 10.04.2009 then construction was started. In order to expedite the construction M/s. Parsvnath Developers Limited engaged M/s. Parsvnath Hessa Developers (P) Limited through agreement dated 09.12.2009. Out of 18 multi-storeyed residential towers (excluding EWS towers), 11 towers have been completed and physical possession over more than 450 flats have been given. Remaining 5 towers (B-1, C-4, D-4, D-5 and D-6) were completed and the builders have applied for issue of “Occupation Certificate” and offered fit-out possession to the allottees. Superstructure and plaster work of remaining towers was completed and finishing works are in progress. Due to force majeure reasons the construction could not be completed. Under the agreement, the allottees are entitled for delayed compensation at the time of offer of possession. The builder has not committed any deficiency in service. The complaint has been filed malafide on frivolous grounds.                 

5.      The complainant filed Rejoinder Reply, Affidavit of Evidence of Nitin Jain and documentary evidence. Both the parties filed their short synopsis.

6.      I have considered the arguments of the parties and examined the record. The opposite party-1 allotted Flat No.B-6-1002, to the complainant on 07.07.2006 and executed Flat Buyer Agreement dated 28.11.2006 in their favour of Flat No.B-6-1002, admeasuring 3390 sq.ft. at the rate of Rs.5500/- per sq.ft., basic price of Rs.18645000/-+ Rs.400000/- for two covered Car Parking spaces, in “Parsvnath Exotica”. The complainant deposited Rs.184422296/- till 09.12.2003. As per clause-10(a) of this agreement, the construction of the flat has to be completed within 36 months of commencement of construction with grace period of six months, which period expired till December, 2013. The opposite party realized more than 94% of basic cost till December, 2013, from the complainant but neither construction was completed nor possession was offered on due date. As such there was deficiency in service on the part of the opposite parties. In the written submission, the opposite parties have stated that Supreme Court in Civil Contempt Petition No.642 of 2020, extended the period for completion of the construction by the opposite parties up to 04.01.2021 but due to lockdown in the country, the construction could not be completed till then. Then Supreme Court again extended the period for construction up to July, 2022, which period has also expired. Alleged force majeure causes have not been proved.

7.      The builders stated that they had offered fit-out possession but in the absence of “Occupancy Certificate” no one can be forced to take possession of group housing project. As such offer of fit-out possession is not a valid offer of possession. Supreme Court in Wg. Cdr Arifur Rahman Khan Vs. DLF Southern Homes Pvt. Ltd., (2020) 16 SCC 512 and Civil Appeal No.1232 of 2019 R.V. Prasannakumar Vs. Mantri Castles Pvt. Ltd. (decided on 11.02.2019), held that delayed compensation is payable in the shape of interest @6% per annum on the deposit of home buyer from due date of possession till the offer of possession.

ORDER

In view of the aforesaid discussions, the complaint is partly allowed. The opposite party is directed to handover possession of Flat No.B-6-1002, in the building “Parsvnath Exotica”, complete in all respect, as per specifications, to the complainant within a period of two months from the date of this judgment and pay delayed compensation in the form of interest @ 6% per annum, on the deposit of the complainants from January, 2014 till the date of offer of possession. After payment/adjustment of account, the builder shall execute conveyance deed and handover possession to the complainant without any further delay.

 
......................J
RAM SURAT RAM MAURYA
PRESIDING MEMBER

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