The General Manager, V/S Senthilnathan G. - Consumer Court Case

Karnataka

Bangalore 2nd Additional

CC/1325/2008

Senthilnathan G. - Complainant(s)

Versus

The General Manager, - Opp.Party(s)

IP

28 Aug 2008

ORDER

IInd ADDL. DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, BANGALORE URBAN
No.1/7, Swathi Complex, 4th Floor, Seshadripuram, Bangalore-560 020
consumer case(CC) No. CC/1325/2008

Senthilnathan G.						...........Appellant(s)
Vs.
The General Manager,						...........Respondent(s)

BEFORE:

Complainant(s)/Appellant(s):

OppositeParty/Respondent(s):

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ORDER

Date of Filing:16.06.2008 Date of Order:28.08.2008 BEFORE THE II ADDITIONAL DISTRICT CONSUMER DISPUTES REDRESSAL FORUM SESHADRIPURAM BANGALORE-20 Dated: 28TH DAY OF AUGUST 2008 PRESENT Sri. S.S. NAGARALE, B.A, LL.B. (SPL.), President. Smt. D. LEELAVATHI, M.A.LL.B, Member. Sri. BALAKRISHNA. V. MASALI, B.A, LL.B. (SPL.), Member. COMPLAINT NO: 1325 OF 2008 Senthilnathan.G, S/o Govindaraj.R, 151/1, Doraisanipalya, Bannerghatta Road, Bangalore-560 076. Complainant V/S The General Manager, Daadys Builder Pvt. Ltd., No.383, 9th Main, 7th Sector, HSR Layout, Bangalore-560102. Opposite Party ORDER By the President Sri. S.S. Nagarale This is a complaint filed U/Sec.12 of the Consumer Protection Act, 1986. The brief facts of the case are that, the complainant has booked a flat bearing No.B-306 with the opposite party at the rate of Rs.1,447/- per sq.ft., by paying Rs.1,00,000/- as booking amount. At the time of booking the flat opposite party informed that he had applied for the approval of the plan with the concerned authority. Once the plan is approved, he will call for the agreement for the construction. Complainant was waiting for the call but opposite party could not get the approval on time due to some reasons. Finally opposite party got approval for the plan on 1st April-2008 after 2 years of the booking. Opposite party demanded Rs.1,850/- per sq.ft., instead of booked rate of Rs.1,447/- per sq.ft.,. Complainant did not agree for the same. Opposite party came down for Rs.1,400/- per sq.ft.,. Complainant did not agree for the amount. Opposite party did not call for construction agreement. Complainant sent a registered letter. Opposite party did not respond to the same. Complainant submitted that opposite party may be directed to make construction agreement for booked amount of Rs.1,447/- per sq.ft., and to pay Rs.1,00,000/- towards compensation for mental agony and hardship. Hence, the complaint. 2. Notice was issued to opposite party. Opposite party put in appearance through Advocate and defence version filed admitting that the complainant had booked flat No.B-306 and agreed rate was Rs.1,447/- per sq.ft.,. Booking Form was issued to the complainant on 3/4/2006. The project was under process for approval from Bangalore Metropolitan Regional Development Authority. The Government of Karnataka issued a notification stating that project coming under the jurisdiction of BMRDA have been banned for one year, for that reason new comprehensive development plan was prepared. Accordingly, project got delayed. Due to ban imposed by the Government of Karnataka opposite party could not able to launch the project. There is no fault on the part of the opposite party. It is not possible for the opposite party to provide flat for agreed rate. There is huge hike in prices of all the construction materials. After obtaining approval from BMRDA opposite party intimated the complainant to go for the sale and construction agreement. But the complainant has not come forward to enter into agreement. According to old CDP the FAR for the project was 2.25. The number of flats were 280 under old CDP. Government of Karnataka introduced new CDP. The FAR is reduced to 1.74. Accordingly, number of flats have been reduced from 280 to 143. During the year 2006 the price of land was Rs.2,020/- per sq.ft.,. As per the present Government Guidelines the value of land itself is Rs.450/- per sq.ft.,. Opposite party requested the complainant to pay extra amount of Rs.250/- per sq.ft., and they have agreed for that. 3. Arguments are heard. Perused the documents. 4. It is true that, complainant had booked flat No.B-306 on 03/04/2006 by paying booking amount of Rs. 1,00,000/-. The agreed rate per sq.ft., was Rs.1,447/-. As regards this aspect is concerned there is absolutely no dispute between the parties. The opposite party has explained certain facts in his version. At the time of booking the project was not approved by the BMRDA. The project was under process of approval. The Government of Karnataka had issued notification and there was ban for one year. A new CDP was prepared and therefore the project got delayed. Due to Government Notification BMRDA did not approve the project within time. The complainant himself has admitted that the concerned authorities approved the plan and project on first April-2008, there is 2 years gap between the date of booking and approval of the plan. During these 2 years period the construction cost had increased abnormally. The price of cement, steel and other materials have gone up. There is a huge hike of prices in construction materials. Labour charges also increased. The other factor shall have to be taken into consideration FAR is also changed. As per the old plan the number of flats were 280, but as per the new FAR the number of flats have been reduced to 143 from 280. For all these reasons the opposite party demanded an extra amount of Rs.250/- per sq.ft., from the respective purchasers. Admittedly, the complainant except paying booking amount of Rs.1,00,000/- he has not paid any further amount. There is no construction agreement and sale agreement between the complainant and the opposite party. On account of the reasons beyond the control of opposite party the project delayed. Therefore, the opposite party is not in a position to sell the flats at the rate of Rs.1,447/- per sq.ft.,. Mere execution of booking Form and payment of booking amount will not create any interest or right. There must be further agreement of sale or construction agreement between the parties. In the absence of any agreement of sale and construction agreement it would not be possible to honor the commitment. Opposite party is justified in demanding some higher rate on account of escalation of prices and for the reasons beyond his control. The learned advocate for the opposite party submitted that the opposite party is even ready and willing to refund the amount with interest or opposite party is also ready to allot the flat to the complainant at Rs.1,700/- per sq.ft.,. The complainant who was present in person submitted that he is interested in getting the flat not the refund of booking amount. He submitted that, the agreement holders and other prospective purchasers of the flats have already accepted and agreed to purchase the flats at Rs.1,700/- per sq.ft.,. Taking into consideration of all the facts and circumstances of the case and the submission made during the course of arguments, increasing the rate by 250/- per sq.ft., to the booking rate, the rate coes to Rs.1,697/-. As a round figure, I feel it would be just, fair and reasonable to direct the opposite party to sell and agree the flat B-306 at Rs.1,695/- per sq.ft.,. The complainant shall enter into sale and construction agreement with the opposite party for the purchase of flat B-306 at the rate of Rs.1,695/- per sq.ft.,. The parties have to enter to sale and construction agreement. The opposite party is not entitled to further increase or enhance the rate of the flat. Since there was 2 years delay in obtaining necessary approval of the plan for the project booking amount of Rs.1,00,000/- of the complainant was held up and the opposite party had made use of that amount. Therefore, the opposite party is to be directed to pay Rs.10,000/- as costs to the complainant. In the result, I proceed to pass the following:- ORDER 5. The complaint is partly allowed. The opposite party is directed to make sale and construction agreement with the complainant in respect of flat B-306 at the rate of Rs.1,695/- per sq.ft.,. Opposite party is directed to pay Rs.10,000/- as costs of the present proceedings to the complainant. 6. Send the copy of this Order to both the parties free of costs immediately. 7. Pronounced in the Open Forum on this 28TH DAY OF AUGUST 2008. Order accordingly, PRESIDENT We concur the above findings. MEMBER MEMBER Rhr.

Date of Filing:16.06.2008 Date of Order:28.08.2008 BEFORE THE II ADDITIONAL DISTRICT CONSUMER DISPUTES REDRESSAL FORUM SESHADRIPURAM BANGALORE-20 Dated: 28TH DAY OF AUGUST 2008 PRESENT Sri. S.S. NAGARALE, B.A, LL.B. (SPL.), President. Smt. D. LEELAVATHI, M.A.LL.B, Member. Sri. BALAKRISHNA. V. MASALI, B.A, LL.B. (SPL.), Member. COMPLAINT NO: 1325 OF 2008 Senthilnathan.G, S/o Govindaraj.R, 151/1, Doraisanipalya, Bannerghatta Road, Bangalore-560 076. Complainant V/S The General Manager, Daadys Builder Pvt. Ltd., No.383, 9th Main, 7th Sector, HSR Layout, Bangalore-560102. Opposite Party ORDER By the President Sri. S.S. Nagarale This is a complaint filed U/Sec.12 of the Consumer Protection Act, 1986. The brief facts of the case are that, the complainant has booked a flat bearing No.B-306 with the opposite party at the rate of Rs.1,447/- per sq.ft., by paying Rs.1,00,000/- as booking amount. At the time of booking the flat opposite party informed that he had applied for the approval of the plan with the concerned authority. Once the plan is approved, he will call for the agreement for the construction. Complainant was waiting for the call but opposite party could not get the approval on time due to some reasons. Finally opposite party got approval for the plan on 1st April-2008 after 2 years of the booking. Opposite party demanded Rs.1,850/- per sq.ft., instead of booked rate of Rs.1,447/- per sq.ft.,. Complainant did not agree for the same. Opposite party came down for Rs.1,400/- per sq.ft.,. Complainant did not agree for the amount. Opposite party did not call for construction agreement. Complainant sent a registered letter. Opposite party did not respond to the same. Complainant submitted that opposite party may be directed to make construction agreement for booked amount of Rs.1,447/- per sq.ft., and to pay Rs.1,00,000/- towards compensation for mental agony and hardship. Hence, the complaint. 2. Notice was issued to opposite party. Opposite party put in appearance through Advocate and defence version filed admitting that the complainant had booked flat No.B-306 and agreed rate was Rs.1,447/- per sq.ft.,. Booking Form was issued to the complainant on 3/4/2006. The project was under process for approval from Bangalore Metropolitan Regional Development Authority. The Government of Karnataka issued a notification stating that project coming under the jurisdiction of BMRDA have been banned for one year, for that reason new comprehensive development plan was prepared. Accordingly, project got delayed. Due to ban imposed by the Government of Karnataka opposite party could not able to launch the project. There is no fault on the part of the opposite party. It is not possible for the opposite party to provide flat for agreed rate. There is huge hike in prices of all the construction materials. After obtaining approval from BMRDA opposite party intimated the complainant to go for the sale and construction agreement. But the complainant has not come forward to enter into agreement. According to old CDP the FAR for the project was 2.25. The number of flats were 280 under old CDP. Government of Karnataka introduced new CDP. The FAR is reduced to 1.74. Accordingly, number of flats have been reduced from 280 to 143. During the year 2006 the price of land was Rs.2,020/- per sq.ft.,. As per the present Government Guidelines the value of land itself is Rs.450/- per sq.ft.,. Opposite party requested the complainant to pay extra amount of Rs.250/- per sq.ft., and they have agreed for that. 3. Arguments are heard. Perused the documents. 4. It is true that, complainant had booked flat No.B-306 on 03/04/2006 by paying booking amount of Rs. 1,00,000/-. The agreed rate per sq.ft., was Rs.1,447/-. As regards this aspect is concerned there is absolutely no dispute between the parties. The opposite party has explained certain facts in his version. At the time of booking the project was not approved by the BMRDA. The project was under process of approval. The Government of Karnataka had issued notification and there was ban for one year. A new CDP was prepared and therefore the project got delayed. Due to Government Notification BMRDA did not approve the project within time. The complainant himself has admitted that the concerned authorities approved the plan and project on first April-2008, there is 2 years gap between the date of booking and approval of the plan. During these 2 years period the construction cost had increased abnormally. The price of cement, steel and other materials have gone up. There is a huge hike of prices in construction materials. Labour charges also increased. The other factor shall have to be taken into consideration FAR is also changed. As per the old plan the number of flats were 280, but as per the new FAR the number of flats have been reduced to 143 from 280. For all these reasons the opposite party demanded an extra amount of Rs.250/- per sq.ft., from the respective purchasers. Admittedly, the complainant except paying booking amount of Rs.1,00,000/- he has not paid any further amount. There is no construction agreement and sale agreement between the complainant and the opposite party. On account of the reasons beyond the control of opposite party the project delayed. Therefore, the opposite party is not in a position to sell the flats at the rate of Rs.1,447/- per sq.ft.,. Mere execution of booking Form and payment of booking amount will not create any interest or right. There must be further agreement of sale or construction agreement between the parties. In the absence of any agreement of sale and construction agreement it would not be possible to honor the commitment. Opposite party is justified in demanding some higher rate on account of escalation of prices and for the reasons beyond his control. The learned advocate for the opposite party submitted that the opposite party is even ready and willing to refund the amount with interest or opposite party is also ready to allot the flat to the complainant at Rs.1,700/- per sq.ft.,. The complainant who was present in person submitted that he is interested in getting the flat not the refund of booking amount. He submitted that, the agreement holders and other prospective purchasers of the flats have already accepted and agreed to purchase the flats at Rs.1,700/- per sq.ft.,. Taking into consideration of all the facts and circumstances of the case and the submission made during the course of arguments, increasing the rate by 250/- per sq.ft., to the booking rate, the rate coes to Rs.1,697/-. As a round figure, I feel it would be just, fair and reasonable to direct the opposite party to sell and agree the flat B-306 at Rs.1,695/- per sq.ft.,. The complainant shall enter into sale and construction agreement with the opposite party for the purchase of flat B-306 at the rate of Rs.1,695/- per sq.ft.,. The parties have to enter to sale and construction agreement. The opposite party is not entitled to further increase or enhance the rate of the flat. Since there was 2 years delay in obtaining necessary approval of the plan for the project booking amount of Rs.1,00,000/- of the complainant was held up and the opposite party had made use of that amount. Therefore, the opposite party is to be directed to pay Rs.10,000/- as costs to the complainant. In the result, I proceed to pass the following:- ORDER 5. The complaint is partly allowed. The opposite party is directed to make sale and construction agreement with the complainant in respect of flat B-306 at the rate of Rs.1,695/- per sq.ft.,. Opposite party is directed to pay Rs.10,000/- as costs of the present proceedings to the complainant. 6. Send the copy of this Order to both the parties free of costs immediately. 7. Pronounced in the Open Forum on this 28TH DAY OF AUGUST 2008. Order accordingly, PRESIDENT We concur the above findings. MEMBER MEMBER Rhr.