Chandigarh

StateCommission

CC/784/2016

Surinder Singh Grewal - Complainant(s)

Versus

PUMA Realtors Pvt. Ltd. - Opp.Party(s)

17 Apr 2017

ORDER

STATE CONSUMER DISPUTES REDRESSAL COMMISSION,

U.T., CHANDIGARH

Consumer Complaint	:	784 of 2016
Date of Institution	:	09.11.2016
Date of Decision	:	17.04.2017

 

Surinder Singh Grewal son of Gurbax Singh Grewal resident of House No.3641, Sector 69, Mohali, Punjab.

 

……Complainant.

Versus

1. Puma Realtors Pvt. Ltd., a Company incorporated under the Companies Act, 1956 (An IREO Group Company), having its Corporate Office at SCO No.6-8, First and Second Floors, Sector 9-D, Chandigarh – 160009 (India) through its Director.
2. The Director, Puma Realtors Pvt. Ltd., a Company incorporated under the Companies Act, 1956 (An IREO Group Company), having its Registered Office at No.5, Dhanraj Chambers, 1st Floor, Satbari, New Delhi-110074.

….Opposite Parties.

Argued by:

 

Sh. Arun Kumar, Advocate for the complainant.

Sh. Ramnik Gupta, Advocate for the Opposite Parties.

 

Consumer Complaint	:	893 of 2016
Date of Institution	:	07.12.2016
Date of Decision	:	17.04.2017

 

1. Surinder Singh Grewal son of Gurbax Singh Grewal,
2. Baljit Kaur Grewal wife of Surinder Singh Grewal,

Both resident of House No.3641, Sector 69, Mohali, Punjab.

 ……Complainants.

Versus

1. Puma Realtors Pvt. Ltd., a Company incorporated under the Companies Act, 1956 (An IREO Group Company), having its Corporate Office at SCO No.6-8, First and Second Floors, Sector 9-D, Chandigarh – 160009 (India) through its Director.
2. The Director, Puma Realtors Pvt. Ltd., a Company incorporated under the Companies Act, 1956 (An IREO Group Company), having its Registered Office at No.5, Dhanraj Chambers, 1st Floor, Satbari, New Delhi-110074.

….Opposite Parties.

Argued by:

 

Sh. Arun Kumar, Advocate for the complainants.

Sh. Ramnik Gupta, Advocate for the Opposite Parties.

 

Complaints under Section 17 of the Consumer Protection Act, 1986.

 

BEFORE: JUSTICE JASBIR SINGH (RETD.), PRESIDENT.

                SH. DEV RAJ, MEMBER.

                MRS. PADMA PANDEY, MEMBER.

                

PER DEV RAJ, MEMBER

               The facts, in brief, are that the complainant applied for a residential plot in the project of Opposite Party No.1, namely ‘IREO Hamlet’, total price whereof was Rs.56,80,310/-. Initially, the complainant paid Rs.6,50,000/- alongwith the application for booking of a plot, to the Opposite Parties. Vide provisional allotment letter, the complainant was allotted Plot No.IH-Plot-00-233 measuring 246.97 Sq. Yards in the said project in Sector 98, SAS Nagar, Mohali. Plot Buyer’s Agreement was executed between the complainant and the Opposite Parties on 10.10.2011 at Chandigarh. Thereafter, the complainant made payment of following amounts/ installments as per demand raised by the Opposite Parties:-

Sr. No.	Mode of Payment	Receipt No./Date	Amount deposited (Rs.)
1.	-	28.05.2011	2,02,047.00
2.	Cheque No.060152	12080522/03.08.2011	9,31,000.00
3.	Cheque No.060156	14100210/28.05.2013	9,30,600.00
4.	Cheque No.594097	15100108/22.04.2014	6,50,000.00
5.	Cheque No.000006	15100109/22.04.2014	2,81,000.00
6.	Cheque No.127322	1500938/19.08.2014	1,90,000.00
7.	Cheque No.000011	15100939/19.08.2014	3,50,000.00
8.	Cheque No.594105	15100968/28.08.2014	3,91,000.00
9.	Cheque No.628828	15101505/25.11.2014	5,68,000.00
10.	-	18.04.2015	6,55,000.00
Total			51,48,647.00

 

2.         As per clause 21.2 of the Agreement, the Opposite Parties were to carry out internal developments by laying roads, water lines, sewer lines and electrical lines etc. Further as per Clause 11.1, 11.2 and 11.3 of the Agreement, possession of allotted plot was to be handed over by the Opposite Parties within a period of 42 months from the date of execution of the Agreement.

3.          The complainant has stated that he visited the spot in the last week of April, 2015, after depositing the payment on 18.04.2015, and found that there was no development at the site i.e. roads, water lines, sewer lines, electrical lines etc. It was further stated that the complainant had already deposited a sum of Rs.57,98,647.00 i.e. (Rs.6,50,000.00 + Rs.51,48,647.00) with the Opposite Parties till April 2015. It was further stated that still finding no development, the complainant requested the Opposite Parties to refund the amount alongwith up-to-date interest @18% p.a. It was further stated that instead of refunding the amount, the Opposite Parties very cleverly issued letter dated 12.05.2015 offering possession to the complainant which was a camouflage and just a paper possession, to usurp the hard earned money of the complainant. It was further stated that till 12.05.2015, the Opposite Parties have not obtained completion certificate from the competent authority. It was further stated that the Opposite Parties used the money for their own profit and have not developed the site as yet and the complainant is not satisfied from the project of the Opposite Parties as the money deposited by him has been blocked. It was further stated that GMADA vide letter dated 22.09.2016 sought explanation from the Opposite Parties that how they offered possession without obtaining the completion certificate. It was further stated that the complainant is no more interested to throw his hard earned money in the project of the Opposite Parties. It was further stated that the acts of the Opposite Parties amounted to deficiency, in rendering service and indulgence into unfair trade practice.

4.          Alleging deficiency, in rendering service, and indulgence into unfair trade practice, on the part of the Opposite Parties, the complainant filed the instant complaint under Section 17 of the Consumer Protection Act 1986 (in short 1986 Act) claiming refund of Rs.57,98,647/- alongwith interest @18% p.a. from the respective dates of deposits, Rs.5,00,000/- as compensation on account of mental torture and harassment and Rs.1,00,000/- as cost of litigation.

5.          The Opposite Parties, in their joint written statement, took-up certain preliminary objections, to the effect, that the complaint was liable to be dismissed, due to existence of arbitration Clause No.33 in the Plot Buyer’s Agreement dated 10.10.2011; that the complainant did not book the plot for his personal use but for investment/commercial purpose as the complainant alongwith his wife Mrs. Baljit Kaur has also purchased the allotment rights of Plot No.209 in the same project and further H.No.3641, Sector 69, SAS Nagar, Mohali is also owned and possessed by complainant’s wife Mrs. Baljit Kaur where the complainant is living with his family; that since the present complaint related to an agreement to sell/purchase of a plot i.e. an immovable property, therefore, the same is not covered under 1986 Act and further, since the complainant sought enforcement of the Agreement, only a Civil Court has the jurisdiction, and as such, consumer complaint was not maintainable; that this Commission has no territorial jurisdiction on account of existence of Clause 35 in the Agreement and that the relief claimed is beyond Section 14(1)(d) of the  1986 Act. 

6.          On merits, it was denied that the total cost of the plot was Rs.56,80,310/-, which in fact was only the basic sales price, whereas the total price agreed between the parties was Rs.60,81,660.95. It was further stated that the amounts were paid by the allottee towards discharge of his contractual obligations of payment of     consideration price of the plot in advance and were received by the Opposite Parties towards development, reimbursement of the cost of land, CLU charges and other charges. It was further stated that the complainant in utter disregard to the term and condition No.19.1 of the Agreement, failed to adhere to the payment schedule and always defaulted in making timely payments. It was further stated that it was not agreed that possession was to be offered after expiry of 42 months from the date of Agreement. On the contrary, it was agreed vide Clause 19.1 of the Agreement that the complainant shall punctually pay the due installments in time and further, if the Opposite Parties failed to offer possession on expiry of grace period, the Opposite Parties shall be                 liable to pay compensation @Rs.50/- per sq. yard per month till actual date fixed for handing over of possession. It was further stated that the complainant never opted for termination of allotment before dispatch of notice of possession dated 12.05.2015. It was further stated that the possession was offered vide letter dated 12.05.2015, which was duly received by the complainant. 

7.          It was further stated that development work commenced on site w.e.f. 01.05.2013 and stood carried on continuously in a phased manner at a good pace till April, 2015 and resultantly, the Opposite Parties started process of handing over of the developed plots by way of issuing notices of possession to various allottees w.e.f. May 2015. It was denied that there was no development at the site in April 2015. It was further stated that even the report of Local Commissioner filed in complaint titled ‘Abha Arora Vs. PUMA Realtors Pvt. Ltd. and another’, bearing No.170 of 2015, clearly unveils the false allegations made by the complainant.

8.          It was further stated that the Opposite parties are possessed of all the necessary approvals and permissions to sell, develop and offer possession of the plots to its allotees but not limited to the notification dated 14.08.2008 issued by Government of Punjab exempting the Opposite Parties from the provisions of the Punjab Apartment and Property Regulation Act, 1995 (in short ‘PAPRA 1995’). It was further stated that NOC for withdrawal of ground water was granted on 19.08.2011, environmental clearance was granted on 30.11.2012; NOC by Punjab Pollution Control Board was granted on 14.05.2013, which was then extended vide letters dated 09.12.2014 & 29.06.2015; NOC for various services subject to fulfilling number of conditions was given on 18.05.2015; NOC by PSPCL was granted on 08.07.2015; approval for commissioning of electrical installations was accorded on 07.08.2015; consent to operate was granted by Punjab Pollution Control Board on 05.01.2016 and Bank Guarantee to the tune of Rs.3,24,10,301/- was submitted to PSPCL on 22.03.2016.

9.          It was further stated that since the Opposite Parties have been exempted from the provisions of PAPRA, as such, they were/are not under any obligation to obtain the completion certificate. It was denied that the Opposite Parties ever issued any letter to the allottee whereby they admitted that there were no basic amenities like internal roads and sewerage at the site. It was submitted that whatever amount has been paid by the complainant or by other allottees, the same have been spent on the development of the site in order to issue the valid and legal notices of possession of the developed plot to them. It was further stated that in terms of Clause 11.3 of the Agreement, since the complainant has never sought refund of the amount, therefore, the question of refund of the deposited amount does not arise as no refund was payable to him at any point of time. It was further stated that neither there was any deficiency, in rendering service, on the part of the Opposite Parties, nor they indulged into any unfair trade practice. The remaining averments, were denied, being wrong.

10.        The complainant, in support of his case, submitted his affidavit, by way of evidence, alongwith which, a number of documents were attached.

11.        The Opposite Parties, in support of their case, submitted the affidavit of Shri Rajneesh, their Authorised Representative, by way of evidence, alongwith which, a number of documents were attached. 

12.        We have heard the Counsel for the parties, and have gone through the evidence, and record of the case, carefully. 

13.        It is evident, on record, that Plot No.233 in the residential project “IREO Hamlet” admeasuring 246.97 sq. yd., Sector 98, SAS Nagar, Mohali, was allotted to the complainant, basic sale price whereof was Rs.56,80,310/- @Rs.23,000/- per sq. yard besides External Development Charges (EDC) @Rs.1,275.10 per sq. yard and IFMS charges @Rs.350/- per sq. yard. Admittedly, Plot Buyer’s Agreement was executed between the complainant and the Opposite Parties on 10.10.2011 (Annexure C-1) at Chandigarh. The payment against the aforesaid plot was to be regulated as per payment plan, Annexure I (at Page 45 of the file). Against the total price of the plot including External Development Charges and IFMS Charges, the complainant made payment in the sum of Rs57,98,647/-. As admitted by the Opposite Parties, the development work started at the site only on 01.05.2013, almost 1½ years after the execution of Plot Buyer’s Agreement dated 10.10.2011. The possession was offered on 12.05.2015 i.e. before filing of the present complaint on 09.11.2016. The case of complainant is that possession offered was without development of the site and basic amenities.

14.           The first question, that falls for consideration, is, as to whether, in the face of existence of arbitration  clause in the Agreement, to settle disputes between the          parties through Arbitration, in terms of provisions of Section 8 (amended) of  1996 Act, this Commission has no jurisdiction to entertain the consumer complaint. This question has already been elaborately dealt with by this Commission in Consumer Complaint No.213 of 2016 titled ‘Gobind Paul Vs. Emaar MGF Land Limited & Another’ decided on 16.08.2016. Paras 8 to 15 of the said order, inter-alia, being relevant, are extracted hereunder:-

                    “8……….To decide above said question, it is necessary to reproduce the provisions of  Section 3 of the Consumer Protection Act 1986 (in short the Act), which reads as under;

“3. Act not in derogation of any other law.—

The provisions of this Act shall be in addition to and not in derogation of the provisions of any other law for the time being in force.”

                    It is also desirable to reproduce unamended provisions of Section 8 of 1996 Act, which reads thus:- 

“8. Power to refer parties to arbitration where there is an  arbitration agreement.—

(1) A judicial authority before which an action is brought in a matter which is the subject of an arbitration agreement shall, if a party so applies not later than when submitting his first statement on the substance of the dispute, refer the parties to arbitration.

(2) The application referred to in sub-section (1) shall not be entertained unless it is accompanied by the original arbitration agreement or a duly certified copy thereof.

(3) Notwithstanding that an application has been made under sub-section (1) and that the issue is pending before the judicial authority, an arbitration may be commenced or continued and an arbitral award made.”

9.                 Many a times, by making reference to the provisions of Section 8 of 1996 Act, in the past also, such objections were raised and the Hon'ble Supreme Court of India, when interpreting the provisions of Section 3 of 1986 Act, in the cases of Fair Air Engg. Pvt. Ltd. & another Vs. N. K. Modi (1996) 6  SCC 385, C.C.I Chambers Coop. Housing Society Ltd. Vs Development Credit Bank Ltd. (2003) 7 SCC 233, Rosedale Developers Private Limited Vs. Aghore Bhattacharya and others, (Civil Appeal No.20923 of 2013) etc., came to a conclusion that the remedy provided under Section 3 of 1986 Act, is an independent and additional remedy and existence of an arbitration clause in the agreement, to settle disputes, will not debar the Consumer Foras, to entertain the complaints, filed by the consumers.

10.               In the year 2015, many amendments were effected in the provisions of 1996 Act. After amendment, Section 8 of 1996 Act, reads as under:-

“8. Power to refer parties to arbitration where there is an arbitration agreement.—

 

(1) A judicial authority, before which an action is brought in a matter which is the subject of an arbitration agreement shall, if a party to the arbitration agreement or any person claiming through or under him, so applies not later than the date of submitting his first statement on the substance of the dispute, then, notwithstanding any judgment, decree or order of the Supreme Court or any Court, refer the parties to arbitration unless it finds that prima facie no valid arbitration agreement exists.”

 

11.               Now it is to be seen, whether, after amendment in Section 8 of the principal Act, any additional right has accrued to the service provider(s), to say that on account of existence of arbitration agreement, for settling the disputes through an Arbitrator, the Consumer Foras have no jurisdiction to entertain a consumer complaint. As has been held by Hon'ble Supreme Court of India, in various cases, and also of the National Commission, in large number of judgments, Section 3 of the 1986 Act, provides additional remedy, notwithstanding any other remedy available to a consumer. The said remedy is also not in derogation to any other Act/Law.

12.               Now, we will have to see what difference has been made by the amendment, in the provisions of Section 8 of 1996 Act. After amendment, it reads that a Judicial Authority is supposed to refer the matter to an Arbitrator, if there exists an arbitration clause in the agreement, notwithstanding any judgment, decree, order of the Hon'ble Supreme Court of India, or any other Court, unless it finds that prima facie, no valid arbitration agreement exists. The legislation was alive to the ratio of the judgments, as referred to above, in earlier part of this order. Vide those judgments, it is specifically mandated that under Section 3 of 1986 Act, an additional remedy is available to the consumer(s), which is not in derogation to any other Act. As and when any argument was raised, the Hon'ble Supreme Court of India and the National Commission in the judgments, referred to above, have made it very clear that in the face of Section 8 of 1996 Act and existence of arbitration agreement, it is still opened to the Consumer Foras to entertain the consumer complaints. None of the judgments ever conferred any jurisdiction upon the Consumer Foras to entertain such like complaints. Only the legal issues, as existed in the Statute Book, were explained vide different judgments. If we look into amended provisions of Section 8 of the principal Act, it explains  that judicial Authority needs to refer dispute, in which arbitration agreement exist to settle the disputes notwithstanding any judgment/decree or order of any Court. That may be true where in a case,  some order has been passed by any Court, making arbitration Agreement non-applicable to a dispute/parties. However, in the present case, the above said argument is not available. The jurisdiction of Consumer Foras to entertain consumer complaints, in the face of arbitration clause in the Agreement, is in-built in 1986 Act. It was not given to these Foras, by any judgment ever. The provisions of Section 3 of 1986 Act interpreted vide judgments vis-à-vis Section 8 of un-amended 1996 Act, were known to the legislature, when the amended Act 2015 was passed. If there was any intention on the part of the legislature, then it would have been very conveniently provided that notwithstanding any remedy available in 1986 Act, it would be binding upon the judicial Authority to refer the matter to an Arbitrator, in case of existence of arbitration agreement, however, it was not so said.

13.               We can deal with this issue, from another angle also. If this contention raised is accepted, it will go against the basic spirit of 1986 Act. The said Act (1986) was enacted to protect poor consumers against might of the service providers/multinational companies/traders. As in the present case, the complainant have spent his life savings to get a unit, for their residential purpose. His hopes were shattered. Litigation in the Consumer Fora is cost effective. It does not involve huge expenses and further it is very quick. A complaint in the State Commission can be filed, by making payment between Rs.2000/- to Rs.4000/- (in the present case Rs.4000/-). As per the mandate of 1986 Act,  a complaint is supposed to be decided within three months, from the date of service to the opposite party. In cases involving ticklish issues (like the present one, maximum not more than six months to seven months time can be consumed), whereas, to the contrary, as per the principal Act (1996 Act),  the consumer will be forced to incur huge expenses towards his/her share of Arbitrator’s fees. Not only as above, it is admissible to an Arbitrator, to decide a dispute within one year. Thereafter, the Court wherever it is challenged may also take up-to one year and then there is likelihood that the matter will go to the High Court or the Hon'ble Supreme Court of India. Such an effort will be a time consuming and costly one. Taking note of fee component and time consumed in arbitration, it can safely be said that if the matter is referred to an Arbitrator, as prayed, in the present case, it will defeat the very purpose of the provisions of 1986 Act.

14.               The 1986 Act provides for better protection of interests and rights of the consumers. For the said purpose, the Consumer Foras were created under the Act. In Section 3 of 1986 Act, it is clearly provided that the said provision is in addition to and not in derogation of any provisions of any other law, for the time being in force. The 1986 Act is special legislation qua the consumers. The poor consumers are not expected to fight the might of multinational companies/traders, as those entities have lot of resources at their command. As stated above, in the present case, the complainant has spent his entire  life earnings to purchase the unit, in the said project, launched by the opposite parties. However, his hopes were shattered, when despite making substantial payment of the sale consideration, they failed to get possession of the unit, in question, in a developed project. As per ratio of the judgments in the case of Secretary, Thirumurugan Cooperative Agricultural Credit Society v. M. Lalitha (2004) 1 SCC 305 and United India Insurance Co. Ltd. Vs. M/s Pushpalaya Printers, I (2004) CPJ 22 (SC),  and LIC of India and another Vs. Hira Lal, IV (2011) CPJ 4 (SC), the consumers are always in a weak position, and in cases where two interpretations are possible, the one beneficial to the consumer needs to be accepted. The opinion expressed above, qua applicability of Section 8 (amended) of 1996 Act, has been given keeping in mind the above said principle.

15.               Not only this, recently, it was also so said by the National Commission, in a case titled as Lt. Col. Anil Raj & anr. Vs. M/s. Unitech Limited, and another, Consumer Case No.346 of 2013, decided on 02.05.2016. Relevant portion of the said case, reads thus:-

“In so far as the question of a remedy under the Act being barred because of the existence of Arbitration Agreement between the parties, the issue is no longer res-integra.  In a catena of decisions of the Hon’ble Supreme Court, it has been held that even if there exists an arbitration clause in the agreement and a Complaint is filed by the consumer, in relation to certain deficiency of service, then the existence of an arbitration clause will not be a bar for the entertainment of the Complaint by a Consumer Fora, constituted under the Act, since the remedy provided under the Act is in addition to the provisions of any other law for the time being in force. The reasoning and ratio of these decisions, particularly in  Secretary, Thirumurugan Cooperative Agricultural Credit Society Vs. M. Lalitha  (Dead) Through LRs. & Others  - (2004) 1 SCC 305; still holds the field, notwithstanding the recent amendments in the Arbitration and Conciliation Act, 1986.  [Also see: Skypak Couriers Ltd. Vs. Tata Chemicals Ltd. - (2000) 5 SCC 294 and National Seeds Corporation Limited Vs. M. Madhusudhan Reddy & Anr. - (2012) 2 SCC 506.] It has thus, been authoritatively held that the protection provided to the Consumers under the Act is in addition to the remedies available under any other Statute, including the consentient arbitration under the Arbitration and Conciliation Act, 1986.””

             In view of the above, the objection raised by the Opposite Parties, being devoid of merit, is rejected.

15.        To defeat claim of the complainant, the next objection raised by the Opposite Parties was that since the complainant had purchased the plot, in question, for investment/commercial purpose i.e. for resale, as and when there was escalation in the prices of real estate, as such, he would not fall within the definition of consumer, as defined by Section 2(1)(d)(ii) of 1986 Act. It was stated by Counsel for the Opposite Parties that the complainant alongwith his wife, Mrs. Baljit Kaur has also purchased the allotment rights of Plot No.209 in the same project and further H.No.3641, Sector 69, SAS Nagar, Mohali is also owned and possessed by complainant’s wife, Mrs. Baljit Kaur where the complainant is living with his family. The complainant has specifically stated in the replication that he (complainant) wanted to transfer the plot, in question, i.e. Plot No.233 in the name of his son, Simranjeet Singh Grewal as his son has no plot/house anywhere in India. As regards Plot No.209 in the same project, which is the subject matter of connected complaint bearing No.893 of 2016 jointly filed by him and his wife, it is stated that the same was purchased by them for their personal use and use of their other family members. It was further stated that House No.3641, Sector 69, Mohali is a small house and the complainant and his wife wanted to have a bigger house for their residence in last stage of their life but the Opposite Parties shattered their dreams of owning a big house by not developing the same in stipulated time as per the Agreement. It may be stated here that there is nothing, on record to show, that the complainant is a property dealer, and is indulged in sale and purchase of property, on regular basis. In the absence of any cogent evidence, in support of the objection raised by the Opposite Parties and in view of specific averment made by the complainant in the rejoinder, mere bald assertion to the effect that the plot, in question, was purchased by the complainant for investment purposes, cannot be taken into consideration. Counsel for the Opposite Parties placed reliance on Mehmooda Sheikh Vs. M/s Distinct Infrastructure Ltd. & 3 Ors., Revision Petition No.2962 of 2015 decided by National Commission on 14.3.2016 alongwith which, connected Revision Petitions Nos.2963 of 2015 to 2970 of 2015 were also decided. The facts of Mehmooda Sheikh Vs. M/s Distinct Infrastructure Ltd. & 3 Ors’s case (supra) are distinguishable as in that case, the complainants were allotted nine plots. The National Commission in Paras 8 and 9 observed that “…… why the family need nine plots plus house, where they are residing now a days.” It was further observed that had the intention of the petitioners/complainants been fair, she/he would have purchased the same in his/her individual name that too 4 to 5 plots only. It may be stated here that in a case titled as Kavita Ahuja Vs. Shipra Estate Ltd. and Jai Krishna Estate Developer Pvt. Ltd., Consumer Complaint No.137 of 2010, decided on 12.02.2015, by the National Consumer Disputes Redressal Commission, New Delhi, it was held that the buyer(s) of the residential unit(s), would be termed as consumer(s), unless it is proved that he or she had booked the same for commercial purpose. The principle of law, laid down, in Kavita Ahuja’s case (supra) is fully applicable to the present case. Under these circumstances, by no stretch of imagination, it can be said that the plot, in question, was purchased by the complainant, by way of investment, with a view to earn profit, in future. Similar view was reiterated by the National Commission, in DLF Universal Limited Vs  Nirmala Devi Gupta, 2016 (2) CPJ 316. Not only above, recently under similar circumstances, in a case titled as “Aashish Oberai Vs. Emaar MGF Land Limited”, Consumer Case No.70 of 2015, decided on 14 Sep. 2016, the National Commission, while rejecting similar plea raised by the builder, observed as under:-

“In the case of the purchase of the house which a builder undertakes to construct for the buyer, the purchase can be said to be for a commercial purpose where it is shown, by producing evidence, that the buyer is engaged in the business of a buying and selling of houses and or plots as a trading activity, with a view to make profits by sale of such houses or plots. A person cannot be said to have purchased a house for a commercial purpose only by proving that he owns or had purchased more than one houses or plots. In a given case, separate houses may be purchased by a person for the individual use of his family members. A person owning a house in a city A may also purchase a house in city B for the purpose of staying in that house during short visits to that city. A person may buy two or three houses if the requirement of his family cannot be met in one house. Therefore, it would not be correct to say that in every case where a person owns more than one house, the acquisition of the house is for a commercial purpose. In fact, this was also the view taken by this Commission in Rajesh Malhotra & Ors. vs. Acron Developers Pvt. Ltd. &Ors. First Appeal No.1287 of 2014 decided on 05.11.2015.”

 

The complainant, thus, falls within the definition of ‘consumer’, as defined under Section 2(1)(d) of the Act. Such an objection, taken by the Opposite Parties, in their written reply, therefore, being devoid of merit, is rejected.  

16.        Another objection raised by Counsel for the Opposite Parties was that since the complainant did not buy goods and did not hire any services, and was seeking enforcement of the Agreement in respect of immovable property, therefore, only a Civil Court can decide the complaint, and consumer complaint was not maintainable. It may be stated here, that the complainant hired the services of the opposite parties, for purchasing the plot, in question, in the manner, referred to above. According to Clause 11.1 of the Agreement, subject to force majeure conditions and reasons, beyond the control of the Opposite Parties, they were to deliver physical possession of the unit, within a period of 30 months i.e. (24 months + 6 months grace period + 12 months extended period), from the date of execution of the same (Agreement), with complete basic amenities, as provided in Clause 21.2. Section 2 (1) (o) of the Act, defines service as under:-

“service” means service of any description which is made available to potential users and includes, but not limited to, the provision of facilities in connection with banking, financing insurance, transport, processing, supply of electrical or other energy, board or lodging or both,  housing construction, entertainment, amusement or the purveying of news or other information, but does not include the rendering of any service free of charge or under a contract of personal service”

 

 

 

 

             From the afore-extracted Section 2(1)(o) of the Act, it is evident that housing/construction, also comes within the definition of a service. In Narne Construction P. Ltd., etc. etc. Vs.  Union Of India and  Ors. Etc., II (2012) CPJ 4 (SC),  it was held that when a person applies for the allotment of a building or site or for a flat constructed by the Development Authority and enters into an agreement with the Developer, or the Contractor, the nature of transaction is covered by the expression ‘service’ of any description. Housing construction or building activity carried on by a private or statutory body constitutes ‘service’ within the ambit of Section 2(1)(o) of the Act. Similar principle of law, was laid down, in Haryana Agricultural Marketing Board Vs. Bishambar Dayal Goyal & Ors. (AIR 2014 S.C. 1766). Under these circumstances, the complaint involves the consumer dispute, and the same is maintainable. Not only this, Section 3 of the Act provides an alternative remedy. Even if, it is assumed that the complainant has a remedy to file a suit in the Civil Court, the alternative remedy provided under Section 3 of the Act, can be availed of by him, as he falls within the definition of consumer, as stated above. In this view of the matter, the objection of Opposite Parties, in this regard, being devoid of merit, must fail, and the same stands rejected.

17.        The next objection raised by the Opposite Parties is that Clause 35 in the Plot Buyer’s Agreement, bars the territorial jurisdiction of this Commission, to entertain and try the complaint. It may be stated here that this issue has already been dealt with in detail by this Commission in the case of ‘Jarnail Singh Sandhu Vs. M/s Puma Realtors Pvt. Ltd. & Anr.’, Consumer Complaint No.173 of 2016 decided on 02.09.2016. Para 19 of the said judgment, being relevant is, inter-alia, extracted hereunder:-

“19……..It may be stated here that according to Section 17 of the Act, a consumer complaint could be filed by the complainant, before the State Consumer Disputes Redressal Commission, within the territorial Jurisdiction whereof, a part of cause of action arose to him. In the instant case,  it is evident, that receipt dated 12.07.2011 in the sum of Rs.9,37,500/- (Annexure C-I), provisional allotment letter dated 04.08.2011 (Annexure  C-II), receipt dated 15.10.2011 in the sum of Rs.10,53,130.58 (Annexure C-III), letter dated 26.09.2011 regarding offer for change of payment plan (Annexure C-IV) and two receipts dated 13.08.2013 (Annexure C-V colly.) were issued by the Chandigarh office of the Opposite Parties i.e. Puma Realtors Private Limited, S.C.O. no.6-7-8, Second Floor, Sector 9-D, Chandigarh. Since a part of cause of action, arose to the complainant, at Chandigarh, this Commission has got territorial Jurisdiction to entertain and decide the complaint. A similar question arose, before the National Commission, in Smt. Shanti Vs. M/s. Ansal Housing & Construction Ltd., First Appeal No.142 of 2001 decided by the National Commission on 11.04.2002, wherein the National Commission held as under:-

“This appeal is directed  against  the  order dated  9.4.2001  of the Delhi Consumer Disputes Redressal Commission  non suiting the appellant on a preliminary issue holding that  Delhi State Consumer Dispute  Redressal Commission will have no jurisdiction  to entertain the complaint.

    What led the State Commission to pass this order was clause 24 of the agreement for allotment of residential flat to the appellant.   It is stated that ‘any dispute arising out of this agreement shall be subject to jurisdiction of Lucknow Courts only”.  State Commission   also   relied   on   the   decision of   the Supreme Court in the case of  A.B.C. Laminart Pvt. Ltd. & Anr. Vs. A.P. Agencies, Salem - AIR 1989 SC 1239 to hold that only the courts in Lucknow  would have jurisdiction.

          We do not think State Commission examined the whole issue in a pragmatic manner.  Complainant is a consumer and raised a consumer dispute under the Consumer protection Act, 1986. To help  and assist a consumer   and to achieve the objects of the Act, Section 11 of the Act was amended.   This  Section relates to  the jurisdiction of the District Forum.  Now  a complaint could be filed against the opposite party  not only at the place where  he actually or voluntarily reside or personally works for  gain  but also where he carries on business or has branch office.  The words “carries  on business or has a branch office” were added by the amending Act of 1993.   Jurisdiction of a District Forum is exclusively covered  by Section 11 of the Act.  For this we do not have to refer any provisions of the Code of Civil Procedure. Any provision  of the agreement which oust the jurisdiction of a District Forum   even from a place where the opposite  party has a branch office  cannot  be held to be  valid or binding.  Moreover, the clause  on which the complainant was non-suited   refers to the jurisdiction  of Lucknow Courts.  District Forum is  not a court as understood in the Code of Civil Procedure.   That clause in the agreement  will have no  meaning as far as jurisdiction of the District Forum where the opposite party has even branch office is concerned. 

          National Commission has already taken a view on this aspect of the matter.  Accordingly the impugned order of the State Commission is set aside and the matter is remanded to the State Commission to decide the complaint in accordance with law. Party shall appear before the State Commission on 8.7.2002 for further directions.  This appeal is disposed of as above.”

It may be stated here that, for determining the territorial jurisdiction, to entertain and decide the complaint, the  Consumer Foras are bound by  the provisions of Section 11 of the Act.  In Associated Road Carriers Ltd., Vs. Kamlender Kashyap & Ors.-I (2008) CPJ 404 (NC), the principle of law, laid down,  by the National Commission, was to the effect, that a clause of jurisdiction, by way of an agreement, between the parties, could not be made applicable, to the consumer complaints, filed before the Consumer Foras, as the Foras are not  the Courts.  It was further held, in the said case, that there is a difference between Section 11 of the Act, and the provisions of  Sections 15 to 20 of the Civil Procedure Code, regarding the place of jurisdiction. Further, in Ethiopian Airlines Vs Ganesh Narain Saboo, IV (2011) CPJ 43 (SC)=VII (2011) SLT 371,  the principle  of law, laid down was   that the restriction of jurisdiction to a particular Court, need not be given any importance in the   circumstances of the case.  In Cosmos Infra Engineering  India  Ltd. Vs Sameer Saksena & another I (2013) CPJ31 (NC) and  Radiant Infosystem Pvt. Ltd. & Others Vs D. Adhilakshmi & Anr., I (2013) CPJ 169 (NC) the  agreements were executed, between the parties, incorporating therein, a condition, excluding the jurisdiction of any other Court/Forum,  in case of dispute, arising under the same, and limiting the jurisdiction of the Courts/Forums at Delhi and Hyderabad.  The National Commission, in the aforesaid cases, held that such a condition, incorporated in the agreements, executed between the parties, excluding the jurisdiction of a particular Court/Forum, and limiting the jurisdiction of a particular Court/Forum, could not be given any importance and the complaint could be filed, at a place, where a part of cause of action arose, according to Section 11 of the Act. The principle of law, laid down, in the aforesaid cases, is fully applicable to the instant case.  At the same time, it is also held in the face of case Ethiopian Airlines Vs Ganesh Narain Saboo’s (supra), decided by the Supreme Court of India, the judgment titled as M/s Taneja Developers and Infrastructure Limited Vs. Gurpreet Singh and another, First Appeal No.33 of 2014, decided on 25.02.2016, by the National Commission, reliance whereupon has been placed by Counsel for the opposite parties, to support his contention, that this Commission has no territorial jurisdiction, shall not hold the field. In these circumstances, such a Clause contained in the Agreement, therefore, could not   exclude the jurisdiction of this Commission, at Chandigarh, where a part of cause of action accrued to the complainant, to file the complaint. The objection taken by the Opposite Parties, in this regard, being devoid of merit, must fail, and the same stands rejected.”

 

               In the instant case, Buyers Agreement (Annexure C-1) was executed at Chandigarh. Receipts dated 03.08.2011, 28.05.2013, 22.04.2014, 22.04.2014, 19.08.2014, 19.08.2014, 28.08.2014, 25.11.2014 (Annexures C-2 to C-9), notice of possession dated 12.05.2015 were issued by Chandigarh office of the Opposite Parties i.e. Puma Realtors Limited, S.C.O. No.6-7-8, First and Second Floor, Sector 9-D, Chandigarh. Since a part of cause of action to the complainant accrued at Chandigarh, this Commission has got the territorial jurisdiction to entertain and decide the complaint. In view of above, this objection raised by the Opposite Parties stands rejected.

18.       The next question, which falls for consideration, is, as to whether the possession offered vide letter dated 12.05.2015 (Annexure OP-3) was complete and proper or not. The Counsel for the complainant submitted that possession of the plot, in question, offered vide letter dated 12.05.2015 was a mere paper possession without their being development and basic amenities.     

19.       The complainant has challenged the offer of possession dated 12.05.2015 by filing the instant complaint for lack of development at the site. It has been stated in para 9 of the complaint that the complainant visited the spot in last week of April 2015 and found that there was no development at the site, which was to be done by the opposite parties by laying Roads, Water Lines, Sewer Lines, Electrical Lines etc. No doubt, nothing by way of evidence has been placed on record but apparently, there was promise to make development and then offer/hand over possession of the plot, to the complainant.

20.        The Opposite Parties were duty bound to provide all basic facilities like roads, sewerage, drinking water, electricity, street lights, drainage etc. There is nothing, on record, that complete development, in respect of the plot, in question, and amenities, as promised, as per the Agreement, were available at the site. The Counsel for the Opposite Parties argued that the complainant has not alleged any deficiency in regard to non-obtaining of approvals. It may be stated here that certain approvals such as electrical installations, NOC subject to making arrangements for suitable provision for drinking water supply and safe disposal of sullage/storm discharge and solid waste management, are inter-linked with development and basic amenities. The fact that certain amenities and approvals were complete/obtained after offer of possession, clearly proves deficiency of the Opposite Parties, as is evident from the position indicated hereinafter.

21.       In Memo No.5001 dated 7.8.2015 (Annexure OP-17), which is letter from the Chief Electrical Inspector to Govt. Punjab, Patiala, to M/s IREO Hamlet A(Residential Township Sector 98, Mohali, it is stated that inspection of subject cited electrical installation was carried out by the Electrical Inspectorate and the same was found to be conforming to the relevant provisions of Central Electricity Authority (Measure relating to safety and Electric Supply) Regulations, 2010 and the  installations  were  approved  for commissioning but clearly, this approval was accorded after offer of possession vide letter dated 12.05.2015. Even the final NOC to the Opposite Parties for 85.25 Acres residential township in Sectors 86, 98 and 99 in Village Sambhalkhi, SAS Nagar, Mohali was accorded by Punjab State Power Corporation Limited on 8.7.2015 (Annexure OP-16), after offer of possession on 12.05.2015. In letter dated 18.05.2015 (Annexure OP-15) addressed to the Opposite Parties by Greater Mohali Area Development Authority (GMADA), w.r.t letter dated 16.04.2015, whereby service plans for Mega Housing Project were submitted, it (GMADA) clearly informed the Opposite Parties that arrangements for suitable provision for drinking water supply and safe disposal of sullage/storm discharge and solid waste management shall be made by the Opposite Parties at their level separately and they shall obtain all necessary approvals from the concerned Authorities as per law in this regard independently. It was further stipulated that the construction work was to commence only after obtaining approvals as per law from the concerned Authorities. As per aforesaid letter, number of conditions were required to be complied with by the Opposite Parties. Nothing has been placed on record to the effect that the Opposite Parties complied with those conditions. Further, consent to operate an outlet for discharge of the effluent u/s 25/26 of Water (Prevention & Control of Pollution) Act, 1974 was granted to the Opposite Parties vide letter dated 05.01.2016 (Annexure OP-18) i.e. after offer of possession. It may also be stated here that the Opposite Parties furnished Bank Guarantee dated 22.03.2016 (Annexure OP-19) with expiry date/ claim expiry date as 21.03.2021 in the sum of Rs.3,24,10,301/- to the PSPCL, after offer of possession. As such, the Opposite Parties had neither completed the development nor did they have all the necessary sanctions/approvals from the Competent Authorities up-till 12.05.2015 when offer of possession was made.

22.        The Counsel for the complainant stated that the possession offered was also not complete and legal as the Opposite Parties have not been issued completion certificate. On the other hand, Counsel for the Opposite Parties argued that they were not required to obtain completion certificate. Counsel for the complainant placed reliance upon information obtained by one Sh. P. S. Saini under Right to Information Act, 2005, who vide Memo No.GMADA/S.T.P-A-1/2016/2724 dated 13.07.2016 (Annexure C-11) was informed that the Opposite Parties i.e.  i.e. M/s Puma Raltors Pvt. Ltd. had applied for partial completion certificate on 16.07.2015 for the Mega project situated in Sector 86, 98 and 99 but due to non submission of certain documents by the promoter, the question of issuing the partial completion certificate was under consideration of the department. Counsel for the complainant also stated that GMADA vide Memo No.GMADA/D.T.P-A-1/2016 dated 22.09.2016 (Annexure C-12) had asked the Opposite Parties to clarify that when completion certificate was not issued for the Mega project IREO Hamlet, Sector 98, then how possession was being given to the allottees (without completion).

23.        In the face of aforesaid position, the argument of Counsel for the Opposite Parties that the Opposite Parties were not required to obtain the completion certificate does not sustain. The issue regarding non-issuance of completion certificate also came up for consideration before this Commission in case titled ‘Sarbjit Singh Vs. Puma Realtors Private Limited’, IV (2016) CPJ 126, wherein qua obtaining completion certificate, this Commission, in Paras 21 and 24, held, inter-alia, as under:-

“21 ….…..It has also been candidly admitted by the opposite party that they had applied to the Competent Authority for partial completion certificate vide letter dated 29.06.2015 Annexure OP-39. At the same time, nothing has been placed on record to prove that the said partial completion certificate has been issued by the Competent Authority till date. It was obligatory on part of the opposite party to handover possession to the complainant complete in all respects after obtaining completion certificate but it miserably failed to do so. The case of the complainant supported by the RTI Information placed on record, issued by the Competent Authorities and also candid admission of the opposite party to the effect that various permissions/sanctions have been obtained by it after 04.05.2015 (offer date) and also some of permissions/sanctions are still pending, is sufficient to prove that development and basic amenities were not complete by the time, offer of possession was made to the complainant, by it (opposite party)……

23.               xxxx

24.               In view of above, it is held that the act of the opposite party, in offering paper possession of the unit, in question, vide letter 04.05.2015, in the absence of development work; basic amenities at the site; non-obtaining of necessary permissions including completion certificate, amounted to deficiency in providing service and also adoption of unfair trade practice. It is therefore held that the offer of possession made by the opposite party is nothing but a paper possession, which is not sustainable, in the eyes of law.”

 

 

             In view of above, the possession offered is also not said to be valid and complete in view of non obtaining of completion certificate.

24.        If the complainant waited for sufficiently long time under the hope that he will get complete possession, the plea of the Opposite Parties that he (complainant) did not raise objection against the Opposite Parties earlier, except the present complaint, does not mean that the complainant was satisfied with the development and was debarred from raising his grievance qua non-development and lack of basic amenities forever. The plea of the Opposite Parties that the complainant after offer of possession made payment in the sum of Rs.1,72,547/- on 23.01.2016 cannot be a ground to assume that there was complete development and the complainant was estopped to file the instant complaint. 

25.        The contention of the complainant that possession offered was not a valid and proper possession is, thus, corroborated from the evidence on record. It is, therefore, held that the Opposite Parties were not only deficient, in rendering service but also indulged into unfair trade practice, by offering a paper possession to the complainant, before completing the development as also without obtaining the necessary approvals.

26.        The next question which falls for consideration, is, whether the complainant is entitled to refund of the entire amount deposited by him. The Counsel for the opposite parties submitted that the complainant made various payment(s) without any protest and he never sought refund. It may be stated here that Plot Buyer’s Agreement was entered into between the parties on 10.10.2011. As per Clause 11.1 of General Clauses of the Agreement, possession of the plot, in question, was to be handed over within 24 months from the date of execution of the said Agreement with further grace period of 6 months but not later than 30 months i.e. latest by 09.04.2014. Further, as per Clause 11.2 of the Agreement, in case, possession was not offered within the stipulated period, then the Opposite Parties were liable to pay compensation calculated @Rs.50/- per sq. yard of the area every month until possession is actually handed over. Clauses 11.1 and 11.2 of the Plot Buyer’s Agreement dated 10.10.2011, being relevant, are extracted hereunder:-

“11.1 - Subject to Force Majeure, as defined herein, and further subject to the Allottee having complied with all its obligations under the terms and conditions of this Agreement, and not being in default of any provision(s) of this Agreement including but not limited to the timely payment of all dues and charges including the total Sale Consideration, registration charges, stamp duty and other charges, and also subject to the Allottee having complied with all formalities or documentation as prescribed by the Company, the Company proposes to hand over the possession of the said Plot to the Allottee within a period of 24 (Twenty Four) months from the date of execution of this Agreement (“Commitment Period”). The Allottee further agrees and understands that the Company shall additionally be entitled to a period of 6 (Six) months (“Grace Period”), after the expiry of the said Commitment Period.

11.2-Subject to Clause 11.1, if the Company fails to offer possession of the said Plot to the Allottee by the end of the Grace Period, it shall be liable to pay to the Allottee compensation calculated at the rate of Rs.50/- (Rupees Fifty only) per sq. yd. of the area of the said Plot (“Delay Compensation”) for every month of delay until the actual date fixed by the Company for handing over of possession of the said Plot to the Allottee. The Allottee shall be entitled to payment against such ‘Delay Compensation’ only after completion of all documentation including registration of the Conveyance Deed”.

 

27.        Since the Plot Buyer’s Agreement was executed on 10.10.2011, 30 months period including 6 months grace period expired on 09.04.2014. Even the extended period of 12 months, in terms of Clause 11.3 of the Agreement expired on 09.04.2015. It is evident from position stated above that possession of the unit, in question, offered to the complainant vide letter dated 12.05.2015 was a paper possession only. Against the total price of the unit, in question, the complainant had made payments in the sum of Rs.57,98,647/- to the Opposite Parties, which was undoubtedly his hard earned money. No plausible reason has been assigned by the opposite parties, as to why they (Opposite Parties) failed to deliver complete possession of the unit, by the date stipulated. Delay could only be condoned, under the terms and conditions of the Agreement, if there existed plausible and justified reasons. Clearly, there is delay in handing over of possession. It may be stated here that offer sent vide letter dated 12.05.2015, has been held to be a mere paper possession. Under similar circumstances, this Commission, in the case of Brig Ajay Raina (Retd.) and another Vs. M/s Unitech Limited, Consumer Complaint No.59 of 2016, decided on 24.05.2016, while relying upon the judgments rendered by the Hon’ble National Commission, held as under:-

“Further, even if, it is assumed for the sake of arguments, that offer of possession, was made to the  complainants, in July 2015 i.e. after a delay of about three years, from the stipulated date, even then, it is not obligatory upon the  complainants to accept the same. It was so held by the National Commission in Emaar MGF   Land   Limited   and   another   Vs. Dilshad Gill, III (2015) CPJ 329 (NC). Recently also, under similar circumstances, in the case of M/s. Emaar MGF Land Ltd. & Anr. Vs. Dr.Manuj Chhabra, First Appeal No.1028 of 2015, decided on 19.04.2016, the National Commission, held as under:-

“I am of the prima facie view that even if the said offer was genuine, yet, the  complainants was not obliged to accept such an offer, made after a lapse of more than two years of committed date of delivery”.

The principle of law laid down in the aforesaid cases is fully applicable to the present case. It is therefore held that the  complainants could not be held guilty, of filing the present complaint, seeking refund of the deposited amount, alongwith interest and compensation, as possession of the unit was not offered to them by the stipulated date.

It was clearly stated by the National Commission, in Emaar MGF Land Limited and another Vs. Dilshad Gill, III (2015) CPJ 329 (NC), that when the promoter has violated material condition, in not handing over possession of the unit, in time, it is not obligatory for a purchaser to accept possession after that date. 

28.       In the present case also, the Opposite Parties committed breach of their obligation, in not offering possession of the plot, in question, within 30 months from 10.10.2011 i.e. date of signing of Buyer’s Agreement and even after expiry of extended delay period of 12 months, on 09.04.2015. The possession offered on 12.05.2015 has been held to be a paper possession. A perusal of Clause 11.3 of the Plot Buyer’s Agreement clearly provides that “……..from the end of the Grace Period (such 12 month period hereinafter referred  to as the “Extended Delay Period”), then the Allottee shall become entitled to opt for termination of the Allotment/Agreement and refund of the actual paid up installment(s) made against the said Plot….”. Since the Opposite Parties failed to hand over valid possession of the plot, in question, with complete development and all basic amenities, to the complainant, even after expiry of 42 months from the execution of Plot Buyer’s Agreement, in view of law laid down in Emaar MGF Land Limited and another Vs. Dilshad Gill ‘s case (supra), the complainant is entitled to seek refund. Thus, in our considered opinion, the complainant is entitled to refund of the deposited amount. By not offering possession of the unit, in question, complete in all respects, within the stipulated period and during extended delay period and by not refunding the deposited amount, the Opposite Parties were deficient in rendering service.

29.        It is to be further seen, as to whether, interest, on the amount to be refunded can be granted, in favour of the complainant. It is not in dispute that an amount of Rs.57,98,647/- was paid by the complainant, without getting anything, in lieu thereof. The said amount has been used by the Opposite Parties, for their own benefit. There is no dispute that for making delayed payments, the Opposite Parties were charging heavy rate of interest, for the period of delay in making payment of installments.  It is well settled law that whenever money has been received by a party which ex ae quo et bono ought to be refunded, the right to interest follows, as a matter of course. The obligation to refund money received and retained without right implies and carries with it, the right to interest. It was also so said by the Hon’ble Supreme Court of India, in UOI vs. Tata Chemicals Ltd (Supreme Court), (2014) 6 SCC 335 decided on March 20th, 2014 (2014) 6 SCC 335). The complainant is, therefore, held entitled to interest @13% (simple) on the deposited amount.

30.        The complainant has stated that despite seeking refund, the opposite parties did not refund the deposited amount. The averment made is without any evidence to this effect. At the same time, it has been vehemently contended by the opposite parties that no such request was received from the complainant. Possession was offered on 12.05.2015. Therefore, without making any request to the opposite parties for refunding the amount and thereafter, filing the complaint after more than one year of offer of possession on 12.05.2015, the complainant is also partly himself responsible for delay in getting refund of the deposited amount. It is apparent from page 32-33 of the written statement that the complainant committed default in remitting installments and various reminders/final notices between 16.02.2014 to 27.03.015 were sent to him by the Opposite Parties to pay those installments. Under these circumstances, compensation for mental agony and physical harassment and deficiency in providing service, in the sum of Rs.1 lac (Rupees One Lac only), if granted, would be adequate to serve the ends of justice.

31.        In complaint bearing No.893 of 2016, particulars of which are indicated in the table given below, possession of the plot, in question, has been offered by the Opposite Parties vide letter dated 12.05.2015 (Annexure C-20):-

TABLE

 

Complaint No.	Whether original allottee?	Date of independent Floor Buyer’s Agreement.	Due date for possession after 42 months period	Date on which possession offered	Amount deposited
893/2016	2nd Allottee (30.11.2012) (Annexure C-9)	01.07.2011	31.12.2014	12.05.2015	Rs.69,22,228/-

 

It is relevant to mention here that the complainants are  second allottee and the rights in plot, in question, i.e. Plot No.209 at “Ireo Hamlet”, Sector 98, Mohali, Punjab were transferred in their favour vide letter dated 30.11.2012 (Annexure C-9) and till then, as per Statement of Account (Exhibit C-19), the previous allottee, namely Sh. Rajiv Kumar Aggarwal, had made payment in the sum of Rs.19,31,003/-. Subsequent payments were made by the complainant. Against total price of the plot, in question, which was Rs.71,25,941.76, the complainants, in all, paid a sum of Rs.69,22,228/- which included a sum of Rs.454/- on account of delayed interest. Since Plot Buyer’s Agreement was executed on 01.07.2011 (Annexure C-4), due date for delivering possession, after expiry of 24 months + 6 months grace period + 12 months extended period, was 31.12.2014. The complainants have termed that possession offered on 12.05.2015 was without complete development and amenities.

32.        In this case, the complainants in the prayer have sought interest @18% per annum from the date of payments received by the Opposite Parties. For the reasons assigned in Consumer Complaint No.784 of 2016, the complainants in this case, are held entitled to refund of Rs.69,22,228/- alongwith interest @13% (simple).

33.        Now it is to be seen as to whether the complainants, who are second allottees, are entitled to interest on the amount(s) paid from the dates of respective deposits. A similar issue came up for consideration before this Commission in Darbara Singh and ors. Vs. Emaar MGF Land Limited and Ors., Complaint Case No.147 of 2016 decided on 22.08.2016. In that case, this Commission granted interest to the complainant from the date of endorsement of the unit as he was subsequent purchaser of the unit. In this case, the complainants are not the original allottees and rights in their favour were assigned on 30.11.2012. On the basis of ratio of judgment in the case of Darbara Singh and ors. Vs. Emaar MGF Land Limited and Ors. (supra), on the amounts paid by the previous allottee up-to 30.11.2012, interest @13% p.a. (simple) shall be payable w.e.f. 30.11.2012. As regards amounts paid by the complainants, they shall be entitled to same rate of interest i.e. 13% p.a. (simple) from the respective dates of deposits.

34.        In the instant case also, compensation for mental agony and physical harassment and deficiency in providing service, in the sum of Rs.1 lac, if granted, would be adequate to serve the ends of justice.

35.        No other point, was urged, by the Counsel for the parties.

36.         For the reasons, recorded above, both the complaints bearing Nos.784 of 2016 and 893 of 2016 are partly accepted, with costs.

Complaint Case No.784 of 2016

             The Opposite Parties are, jointly and severally, held liable and directed as under:-

(i)    To refund the amount of Rs.57,98,647/- to   the   complainant, alongwith interest @13% p.a. (simple), from the respective dates of deposits within a period of 45 days, from the date of receipt of a certified copy of this order.

(ii)   To pay an amount of Rs.1,00,000/- (Rupees One Lac only), as compensation for mental agony, physical harassment, deficiency in rendering service and unfair trade practices and Rs.35,000/- as cost of litigation, to the complainant, within a period of 45 days from the date of receipt of a certified copy of the order.

(iii)  In case, the payment of amount, mentioned in Clause (i), is not made, within the stipulated period, then the Opposite Parties, shall be liable to pay the amount mentioned in Clause (i) above, with interest @15% p.a. (simple), from the date of default, till realization and amount(s) mentioned in Clause (ii) above, with interest @13% p.a. (simple) from the date of filing the complaint till realization.

Complaint Case No.893 of 2016

             The Opposite Parties are, jointly and severally, held liable and directed as under:-

(i)    To refund the amount of Rs.69,22,228/- to   the   complainants, alongwith interest @13% p.a. (simple), with effect from 30.11.2012 for the amount(s) paid uptil 30.11.2012 by the previous allottee and from the respective dates of deposits, in respect of payments made w.e.f. 30.11.2012 onwards, within a period of 45 days, from the date of receipt of a certified copy of this order.

(ii)   To pay an amount of Rs.1,00,000/- (Rupees One Lac only), as compensation for mental agony, physical harassment, deficiency in rendering service and unfair trade practices and Rs.35,000/- as cost of litigation, to the complainants, within a period of 45 days from the date of receipt of a certified copy of the order.

(iii)  In case, the payment of amount, mentioned in Clause (i), is not made, within the stipulated period, then the Opposite Parties, shall be liable to pay the amount mentioned in Clause (i) above, with interest @15% p.a. (simple), from the date of default, till realization and amount(s) mentioned in Clause (ii) above, with interest @13% p.a. (simple) from the date of filing the complaint till realization.

37.        However, it is made clear that in case, the complainant(s) has availed loan facility from any financial institution(s), such an institution shall have the first charge on the amount payable, to the extent, the same is due against the complainant(s).

38.        Certified Copies of this order be placed in the file of complaint bearing Nos.893 of 2016.

39.        Certified Copies of this order be sent to the parties, free of charge.

40.        The file be consigned to Record Room, after completion.

Pronounced.

17.04.2017.

[JUSTICE JASBIR SINGH (RETD.)]

PRESIDENT

 

 

 

[DEV RAJ]

MEMBER

 

 

 

[PADMA PANDEY]

 MEMBER

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