DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, SAHIBZADA AJIT SINGH NAGAR (MOHALI)

                                      Consumer Complaint No.720 of 2016

                                                Date of institution:  20.10.2016                                         Date of decision   :  13.11.2017

Mrs. N. Purnamala Devi wife of Y. Surjit Singh, resident of House No.42, New Colony-1, Khuda Lahora, Chandigarh 160012.

 ……..Complainant

                                        Versus

1.     The Sky Rock City Welfare Society, Site office 111-112, Near CGC College, Landran, SAS Nagar, Mohali through its President Navjeet Singh. 

2.     Shri Navjeet Singh, President, The Sky Rock City Welfare Society, Site office 111-112, Near CGC College, Landran, SAS Nagar, Mohali.

                                                           ………. Opposite Parties

Complaint under Sections 12 of

the Consumer Protection Act.

Quorum

Shri Ajit Pal Singh Rajput, President                          Shri Amrinder Singh Sidhu, Member.

Present:    Shri Arjun Kundra, counsel for the complainant.

None for the OPs.

ORDER

By Ajit Pal Singh Rajput, President

                Complainant Mrs. N. Purnamala Devi has filed this complaint against the Opposite Parties (hereinafter referred to as the OPs) under Section 12 of the Consumer Protection Act. The brief facts of the complaint are as under:

2.             The complainant applied for enrolment of membership of the OPs for their project namely Sky Rock City Part-II Mullanpur for purchase of plot measuring 100 sq. yard by paying Rs.10,000/- vide cheque dated 18.06.2012. The complainant was enrolled as member of the society vide Registration No.R-780. The complainant also paid Rs.85,000/- to the OPs vide cheque dated 18.06.2012 towards cost of the land. Terms and conditions were mentioned on the overleaf of receipt dated 27.11.2011.  The complainant was assured by the OPs that they have all the approvals and clearances for the project and will handover the plot to the complainant within three years from the date of membership.  The complainant visited the OPs to enquire about the development of the project and also sent letter dated 22.12.2014 asking for refund of amount of Rs.95,000/- paid by her.  The complainant again sent reminder on 13.10.2016 and the OPs failed to reply to the letter of the complainant and also did not make refund. Hence, the complainant has prayed for directing the OPs to refund Rs.95,500/- alongwith interest @ 18% per annum from the dates of deposit till its realisation; to pay her Rs.50,000/- for harassment and mental agony and Rs.30,000/- as litigation cost.

3.             The complaint has been contested by the OPs by filing written statement. The OPs in the preliminary objections have pleaded that the complaint is premature as  she has made request for refund on 22.12.2014. As per condition No.4 agreed upon between the parties, the complainant is liable for refund only after a period of three years from the date of requisition and as per condition No.9 if the complainant fails to make scheduled payment, the membership can be cancelled.  On merits, the OPs have admitted some of the contents of complaint as matter of record and denied some of the contents and ultimately prayed for dismissal of the complaint,

4.             In order to prove the case, the counsel tendered in evidence affidavit of the complainant Ex.CW-1/1; copies of receipt and terms and conditions Ex.C-1 and C-2; statement of accounts Ex.C-3; letter Ex.C-4; visits Ex.C-5; representations/letters Ex.C-6 and order of this Forum Mark-A to Mark-C.  On failure of the OPs to lead evidence despite availing several adjournments, the evidence of the OPs was closed by order on 25.07.2017.

5.             The learned counsel for the complainant  has submitted that the complainants booked a 100 sq. yard plot in the project of the opposite parties by paying Rs.10,000/-, as membership fee vide receipt dated 20.10.2011 Ex.C-1. Thereafter she  paid a sum of Rs.85,000/- to the OPs vide receipt dated 27.11.2011 Ex.C-2. Learned counsel has further argued that the complainant was assured that the possession of the plot was to be handed over physically not later than three years from the date of registration/requisition as per terms and conditions attached with receipt Ex.C-1 but the opposite parties have failed to develop the plot/project or to deliver the possession of the plot to her.  As there was no development at the site, the complainant vide letter dated 22.12.2014 Ex.C-4 and her visits as is evident from Ex.C-5, letter  dated 13.10.2016 Ex.C-6 sought refund of the amount which the OPs have failed to refund to the complainant. Thus the opposite parties committed deficiency in service and unfair trade practice.  None appeared on behalf of the OPs for addressing arguments.

6.             We have given thoughtful consideration to the submissions of counsel for the complainant. The complainant booked a plot of 100 sq. yds. with the opposite parties, by paying Rs.10,000/-, as membership fee vide receipt dated 20.10.2011 Ex.C-1. Thereafter she paid a sum of Rs.85,000/- to the OPs vide receipt dated 27.11.2011 Ex.C-2.   As per the assurance given by the OPs, the complainant vide letter dated 22.12.2014 Ex.C-4 and her visits as is evident from Ex.C-5, letter  dated 13.10.2016 Ex.C-6 sought refund of the amount which the OPs have failed to refund to the complainant. As per condition No.4 of terms and conditions attached with Ex.C-1 the possession of the plot was to be delivered not later than three years of the registration/requisition. The registration date of the plot was 20.10.2011; meaning thereby that the possession of the plot was to be delivered by 19.10.2014, but the opposite parties have failed to complete their project and to deliver the possession of the plot to the complainants within that period.  Thus, the OPs did not make refund of the amount to the complainant.

7.             It is relevant to mention here that a number of cases have been filed against these very opposite parties in the this Forum as well as before the Hon’ble State Commission, in which it has been abundantly proved that the opposite parties have no requisite licences/permissions/approvals from the competent authorities for developing their project. Thus, the opposite parties have illegally pocketed the hard earned money of the various consumers, without completing their project and they have been litigating in various courts against this builder. As per section 3 (General Liabilities of Promoter) of the PAPRA, the opposite parties were required to make full and true disclosure of the nature of his title to the land, on which such colony is developed or such building is constructed or is to be constructed, make full and true disclosure of all encumbrances on such land, including any right, title, interest or claim of any party in or over such land. They were also required to give inspection on seven days, notice or demand of the layout of the colony and plan of development works to be executed in a colony as approved by the prescribed authority in the case of a colony. However, the opposite parties failed to comply with section 3 of the PAPRA. As per section 5 (Development of land into Colony) of PAPRA, the opposite parties were liable to obtain permission from the competent authority for developing the colony, but they failed to produce on record any such permission, as they failed to lead any evidence. So, they also violated Section 5 of PAPRA. As per Section 9 of PAPRA, every builder is required to maintain a separate account in a scheduled Bank, for depositing the amount deposited by the buyers, who intend to purchase the plots/flats, but no evidence has been led on the record by the opposite parties to prove that any account has been maintained by them in this respect. There is no evidence or pleading on record on behalf of the opposite parties in this respect. As such, the opposite parties also violated Section 9 of the PAPRA. Further, as per Section 12 of the PAPRA, if the builder fails to deliver possession of the plot/apartment by the specified date, then the builder is liable to refund the amount deposited by the buyer with interest.  As per Rule 17 of the “Punjab Apartment and Property Regulation Rules, 1995, framed under Section 45 of the PAPRA, it has been provided as under:-

17. Rate of interest on refund of advance money upon cancellation of agreement.- The promoter shall refund full amount collected from the prospective buyers under sub-section (1) of section 6 together with interest thereon at the rate of twelve per cent per annum payable from the date of receipt of amount so collected till the date of re-payment.”

8.             The opposite parties had been collecting huge amounts from the buyers for the development of the project. The amount received from the complainants-buyers was required to be deposited in the schedule Bank, as per Section 9 of PAPRA and we wonder where that amount had been going. The opposite parties are not to play the game at the cost of others. When it insists upon the performance of the promise by the consumers, it is to be bound by the reciprocal promises of performing their part of the agreement. The opposite parties have failed to comply the aforementioned provisions of PAPRA, while launching and promising to develop their project. Thus, the delay in not delivering the possession of plot within the agreed period amounts to deficiency in service on the part of the opposite parties, for which the complainant is to be suitably compensated. The complainant has made payment of substantial amount to the opposite parties with the hope to get the possession of the plot in a reasonable period. The circumstances clearly show that the opposite parties made false statement of facts about the goods and services i.e. allotment of plot and delivery of possession in a stipulated period. The act and conduct of the opposite parties is a clear case of misrepresentation and deception, which resulted in the injury and loss of opportunity to the complainants. From the facts and evidence brought on the record of the complaint, it is clearly made out that the opposite parties i.e. builder knew from the very beginning that they had not complied with the provisions of the PAPRA and Rules and would not be able to deliver the possession within the stipulated period, thus by misrepresentation induced the complainants to book the plot, due to which the complainants have suffered mental agony and harassment. In these circumstances, the complainants are entitled to the refund of the amount deposited by them, along with interest and suitable compensation. The Hon’ble Punjab State Consumer Disputes Redressal Commission in a latest decision in Ms. Sneh Sood Vs. M/s. Bajwa Developers Ltd. in Consumer Complaint No.240 of 2016 decided on 23.02.2017 has ordered refund of the deposited amount of the complainant alongwith interest @ 12% per annum from the different dates of deposit of different amounts till the date of actual refund.

9.             Accordingly, in view of our aforesaid discussion, we direct the OPs to refund the deposited amount of Rs.95,000/-     (Rs. Ninety Five Thousand only) to the complainant alongwith interest @ 12% per annum from the different dates of deposit of different amounts, till the actual date of refund. We also find that complainant is entitled to a sum of Rs.25,000/- (Rs. Twenty five thousand only) on account of mental agony due to the negligent act of the OPs and litigation cost of Rs.10,000/- (Rs. Ten thousand only). The present complaint stands allowed.            

                The OPs are further directed to comply with the order of this Forum within 30 days from the date of receipt of this order, failing which the amount of compensation awarded shall carry interest at the rate of 12% per annum from the date of this order till realisation.

                The arguments on the complaint were heard and the order was reserved. Now the order be communicated to the parties. Copy of the order be sent to the parties free of cost and thereafter the file be consigned to the record room.

Pronounced

Dated: 13.11.2017    

                                           (A.P.S.Rajput)                 

President

(Amrinder Singh Sidhu)

Member