BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, SAS NAGAR, MOHALI

                                  Consumer Complaint No.645 of 2014

                                 Date of institution:          05.11.2014

                                               Date of Decision:             26.06.2015

Rajiv Kumar son of Tek Chand, resident of Kothi No.680, First Floor,  Phase-1, SAS Nagar, Mohali (Punjab).

    ……..Complainant

                                        Versus

1.     M/s. Sky Rock City Welfare Society (Regd.), SCO 672, Sector 70, SAS Nagar Mohali (Punjab).

2.     Navjeet Singh son of Daljit Singh, President of M/s. Sky Rock City Welfare Society, resident of House No.248, United Cooperative House Building Society Ltd., Sector 68, SAS Nagar (Mohali).

………. Opposite Parties

Complaint under Section 12 of the

Consumer Protection Act, 1986.

CORAM

Mrs. Madhu. P. Singh, President.

Shri Amrinder Singh, Member.

Mrs. R.K. Aulakh, Member.

Present:    Complainant in person.

None for the OPs.

(Mrs. Madhu P. Singh, President)

ORDER

                The complainant has filed the present complaint seeking following direction to the Opposite Parties (for short ‘the OP’) to:

(a)    refund the membership fee of Rs.10,000/-.

(b)    refund the amount of Rs.3,93,750/- paid as first installment.

(c)    pay Rs.10,00,000/- for harassment.

(d)    pay Rs.5,00,000/- as litigation charges.

                The complainant has pleaded in the complaint that he booked a plot of 150 sq. yards with the OPs on 20.06.2011 in Sector 111-112, Kharar Landran Road with the commitment by the OPs that the loan would be provided by them to the complainants within a period of 6 months from the date of booking. The total value of the plot was Rs.15,75,000/-. The complainant paid the booking amount of Rs.10,000/- vide cheque dated 20.06.2011 and first installment (25%) of Rs.3,83,750/- vide cheque and Rs.10,000/- in cash on 23.08.2011.  The complainant has pleaded that thereafter he had been visiting the OPs almost every month since 2011 for the bank loan and to provide copy of clearance report and other legal documents  but every time the Ops are giving wrong commitments.  Thus, on these allegations the complainant has filed the present complaint.

2.             After admission of the complaint, notice was sent to the OPs. Shri Hittan Nehra, Advocate appeared for the OPs on 15.12.2014 and filed power of attorney. The matter was adjourned to 19.12.2014 for filing written reply by the OPs. Reply was not filed rather the OPs moved two application for dismissal of the complaint on the ground (i) the complaint is pre mature and (ii) that there exists an arbitration clause in the terms and conditions governing the relationship between the parties and, therefore, the complaint is not maintainable. Both the applications were dismissed and thereafter the OPs have omitted to file any reply to the complaint and the complaint was proceeded against the OPs

3.             To succeed in the complaint, the complainant proved on record affidavit Ex.CW-1/1 and tendered in evidence documents Ex.C-1 to C-4.

4.             To rebut the allegations of the complainant, the OPs tendered the affidavit of Navjeet Singh Ex.OP-1/1 and thereafter no other document was tendered in evidence.

5.             We have heard authorized representative of the complainant and have also carefully gone through the case file. Neither the written arguments were filed by the OPs nor did anybody appear on their behalf to address the oral arguments.

6.             It is evident that the complainant is a Member of the society since 20.06.2011 and has paid the membership amount of Rs.5000/- vide Ex.C-1 and has further made various payments against the sale consideration of plot measuring 150 sq. yards @ Rs.10,500/- per sq. yards. In all the complainant has deposited a total sum of Rs.3,93,750/- vide Ex.C-2. As per terms and conditions mentioned on the overleaf of the receipt Ex.C-1 and C-2, the plot was to be handed over to the complainant not later than two years of the registration/requisition. The complainant is given liberty to work out from the scheme after seeking refund of the deposited amount alongwith prevailing rate of interest  per annum after one year from the registration. The grievance of the complainant is that he was willing and ready to pay the outstanding amount as he has made request to the OPs to complete the formalities for arranging loan from the bank for balance payment as is evident from Ex.C-4. However, the OPs have neither completed the formalities, thus disabling him to arrange loan from the bank for making balance payment nor the possession of the plot has been handed over to him within two years as promised in the terms and conditions nor has returned the deposited amount alongwith interest despite making oral requests in this regard. Thus, non delivery of the possession within the agreed time as well as non refund of the deposited amount is an act of deficiency in service.  Further the OPs have not even got the promoter license when they have collected the money from the complainant.

7.             The complainant has proved having made the payments to the OPs through Ex.C-1 a duly signed and stamped receipt dated  20.06.2011 issued by the OPs and the factum of receipt of these amounts is not denied by the OPs in their affidavit. The OPs have not produced any document on record to show that the area has been developed by them and further they have promoter license in their favour at the time of collection of money from the complainant.

8.             Therefore, the issue of dispute between the parties is non refund of the deposited amount. The complainant has deposited a total sum of Rs.3,98,750/- as part of the sale consideration of 150 sq. yards plot @ Rs.10,500/- per sq. yard alongwith  Rs.5,000/- as membership fee.  Since the OPs have failed to show anything on record regarding development of the area or the steps taken by them to seek permission/sanctions from the competent authorities and delay occurred therein which hampered them giving the possession of the plot to the complainant within two years from the date of registration, the complainant is well within his right to get the refund of the deposited amount as a part of sale consideration. As per terms and conditions mentioned in the receipt Ex.C-2 the complainant is entitled to the refund of the deposited amount alongwith prevailing interest per annum after one year from the registration.  As per OPs affidavit the complainant is entitled to refund of the deposited amount alongwith interest @ 8% per annum from the day they receive the written request in this regard.  Undisputedly the OPs have admitted the terms and conditions regarding the refund. Now the question is from which date the complainant is eligible to seek the refund. As per terms and conditions, the complainant is eligible to seek the refund within one year from the date of registration. Even if it is believed that the complainant has not sent any written request for refund, the acts of omission and commission on the part of the OPs even during the pendency of the present complaint are sufficient to make us believe that the complainant is entitled to seek the refund after one year from the date of registration. The fact of seeking refund of the deposited money of Rs.3,98,750/- and non development of the project are well within the knowledge of the OPs. By not conceding to the request of the complainant for refund of the deposited amount alongwith prevailing interest per annum as per terms and conditions Ex.C-1 and C-2 is an act of deficiency in service and unfair trade practice on the part of the OPs.  The complainant has sufficiently proved his case of deficiency in service and unfair trade practice on the part of the OPs. Therefore, the complaint deserves to be allowed and the complainant deserves to be compensated.

9.             Thus, the complaint is allowed with the following directions to the OPs to:

1. to refund to the complainant Rs.3,98,750/- (Rs. Three lacs ninety eight thousand seven hundred fifty only) deposited as a part payment against sale of 150 sq. yard plot at the promised rate of Rs.10,500/- per sq. yard. The said amount be refunded to the complainant alongwith prevailing rate of interest per annum w.e.f. 06.09.2012 i.e. after one year of the date of registration  Ex.C-3 till realization.

 (b)   to pay a lump sum compensation of Rs.50,000/- (Rs. Fifty thousand only) for mental agony, harassment and costs of litigation.

                Compliance of this order be made within a period of thirty days from the date of receipt of a certified copy of this order.  Certified copies of the order be furnished to the parties forthwith free of cost and thereafter the file be consigned to the record room.

Pronounced.                           

June 26, 2015.   

                            (Mrs. Madhu P. Singh)

                                                                        President

                                                        (Amrinder Singh)

Member

(Mrs. R.K. Aulakh)

Member