Pankaj Kansal filed a consumer case on 11 Apr 2018 against Unitech Limited in the StateCommission Consumer Court. The case no is CC/785/2017 and the judgment uploaded on 13 Apr 2018.
Chandigarh
StateCommission
CC/785/2017
Pankaj Kansal - Complainant(s)
Versus
Unitech Limited - Opp.Party(s)
Gitish Bhardwaj,Adv.
11 Apr 2018
ORDER
STATE CONSUMER DISPUTES REDRESSAL COMMISSION,
U.T., CHANDIGARH
Complaint case No.
:
785 of 2017
Date of Institution
:
08.11.2017
Date of Decision
:
11.04.2018
Mr.Pankaj Kansal s/o Sh.Roop Lal, R/o House No.F-354, MC Colony, Abohar Road, Fazilka-152123 (Punjab). Presently residing at H.No.1154, Model Town, Phase III, Bathinda.
Mr.Pardeep Kansal s/o Sh.Roop Lal, R/o House No.F-354, MC Colony, Abohar Road, Fazilka-152123 (Punjab). Presently residing at H.No.1154, Model Town, Phase III, Bathinda.
…… Complainants
V e r s u s
Unitech Limited, Marketing Office at SCO 189-90-91, Sector 17C, Chandigarh, through its Authorized Signatory.
11nd Address:- Registered Office at 6, Community Centre, Saket, New Delhi-110017
Alice Developers Private Limited, having office at 6, Community Centre, Saket, New Delhi-110017.
….Opposite parties.
Complaint under Section 17 of the Consumer Protection Act, 1986
BEFORE: JUSTICE JASBIR SINGH (RETD.), PRESIDENT.
MR. DEV RAJ, MEMBER.
MRS. PADMA PANDEY, MEMBER.
Argued by:- Sh.Gitish Bhardwaj, Advocate for the complainants.
Mrs.Vertika H. Singh, Advocate for opposite party No.1.
Ms.Kshitija Mittal, Advocate for opposite party no.2.
PER JUSTICE JASBIR SINGH (RETD.), PRESIDENT
Vide our separate detailed order of the even date, recorded in consumer complaint bearing no.666 of 2017, titled as Ashok Kumar Mahajan and another Vs. Unitech Limited and ors.Top of Form
, this complaint has been partly accepted with costs.
Certified copy of the order passed in consumer complaint bearing No. 666 of 2017 shall also be placed on this file.
Certified copies of this order, alongwith the main order passed in consumer complaint bearing No. 666 of 2017, be sent to the parties, free of charge.
The file be consigned to Record Room, after completion.
Sd/- Sd/- Sd/-
(DEV RAJ)
MEMBER
(JUSTICE JASBIR SINGH (RETD.))
PRESIDENT
(PADMA PANDEY)
MEMBER
Rg
STATE CONSUMER DISPUTES REDRESSAL COMMISSION,
U.T., CHANDIGARH
Complaint case No.
:
666 of 2017
Date of Institution
:
06.09.2017
Date of Decision
:
11.04.2018
Ashok Kumar Mahajan son of Jyoti Parkash Mahajan, resident of 2B/54 (3rd Floor), (Opposite Post Office), Ramesh Nagar, New Delhi-15.
Amit Mahajan son of Ashok Kumar Mahajan, resident of 2B/54 (3rd Floor), (Opposite Post Office), Ramesh Nagar, New Delhi-15.
…… Complainants
V e r s u s
Unitech Limited, a Public Limited Company duly incorporated under the Companies Act 1956, having its Registered Office at 6, Community Centre, Saket, New Delhi-110017, through its Chairman Shri Ramesh Chandra.
Second Address:- Unitech Limited, a Public Limited Company duly incorporated under the Companies Act 1956, having its Marketing Office SCO No.189-90-91, Sector 17-C, Chandigarh.
Mr.Ajay Chandra, Managing Director, Unitech Group, a Public Limited Company duly incorporated under the Companies Act 1956, having its Registered Office at 6, Community Centre, Saket, New Delhi-110017
Mr.Sanjay Chandra, Managing Director, Unitech Group, a Public Limited Company duly incorporated under the Companies Act 1956, having its Registered Office at 6, Community Centre, Saket, New Delhi-110017
Sanjeev (Sanjiv) Hingorani, Director, Alice Developers Private Limited, Registered Office at Basement 6, Community Centre, Saket, New Delhi;
Satbir Singh Yadav, Director, Alice Developers Private Limited, Registered Office at Basement 6, Community Centre, Saket, New Delhi.
…..Opposite parties no.1 to 4
Housing Development Finance Corporation Limited (HDFC), Registered Office at Raman House, 169, Backbay Reclamation, Mumbai-400020, Branch Office at HDFC Limited, SCO No.153-155, Sector 8-C, Chandigarh.
…. Proforma opposite party
Argued by:- Ms.Anjali Moudgil, Advocate for the complainants.
Mrs.Vertika H. Singh, Advocate for opposite parties No.1 to 3.
Ms.Kshitija Mittal, Advocate for opposite party no.4.
Sh.Manav Satija, Advocate proxy for Ms.Rupali Shekhar Verma, Advocate for opposite party no.5.
Unitech Limited, Marketing Office at SCO 189-90-91, Sector 17C, Chandigarh.
Registered Office at 6, Community Centre, Saket, New Delhi-110017, through its Managing Director/Authorized Signatory/Officer-in-Charge/Director Sales & Marketing.
Alice Developers Private Limited, Registered Office at Basement 6, Community Centre, Saket, New Delhi-110017, through its Managing Director/Authorized Signatory/Officer-in-Charge/ Director Sales & Marketing.
….Opposite parties.
Argued by:- Sh.Arjun Sheoran, Advocate for the complainant.
Mrs.Vertika H. Singh, Advocate for opposite party No.1.
Ms.Kshitija Mittal, Advocate for opposite party no.2.
Unitech Limited, through its Chairman/Managing Director, having Registered Office at 6, Community Centre, Saket, New Delhi-110017.
Sh.Ramesh Chandra, Chairman of Unitech Limited, having Registered Office at 6, Community Centre, Saket, New Delhi-110017.
Alice Developers Private Limited, through its Director, having Registered Office at 6, Community Centre, Saket, New Delhi-110017.
Satbir Singh Yadav, Director of Alice Developers Private Limited, through its Director having Registered Office at 6, Community Centre, Saket, New Delhi-110017.
…..Opposite parties
Argued by:- Sh.Sanjeev Sharma, Advocate for the complainants.
Mrs.Vertika H. Singh, Advocate for opposite party No.1.
Ms.Kshitija Mittal, Advocate for opposite parties no.3 and 4.
Both residents of Flat No.24, Building 24, Lane-3, Sulaiman Adsani Street-3, Area/Block-10, Salmiya Kuwait-22071 through their Power of Attorney Holder Dr.Bishan Das Radotra son of Late Paraksh Ram Radotra resident of House No.64, Sector 24-A, Chandigarh.
…… Complainants
V e r s u s
Unitech Limited, through its Chairman Ramesh Chandra, having its Marketing Office at SCO No.189-90-91, Sector 17-C, Chandigarh.
2nd Address:-M/s Unitech Limited, through Director Ajay Chandra, having Registered Office at 6, Community Centre, Saket, New Delhi-110017.
Sanjay Chandra, Director of M/s Unitech Limited, having Registered Office at 6, Community Centre, Saket, New Delhi-110017.
Alice Developers Private Limited, through its Director, having Registered Office at 6, Community Centre, Saket, New Delhi-110017.
Satbir Singh Yadav, Director of M/s Alice Developers Private Limited, having Registered Office at 6, Basement, Community Centre, Saket, New Delhi-110017.
…..Opposite parties
Argued by:- Sh.Sanjeev Sharma, Advocate for the complainants.
Mrs.Vertika H. Singh, Advocate for opposite party No.1.
Ms.Kshitija Mittal, Advocate for opposite parties no.3 and 4.
Mr.Pankaj Kansal s/o Sh.Roop Lal, R/o House No.F-354, MC Colony, Abohar Road, Fazilka-152123 (Punjab). Presently residing at H.No.1154, Model Town, Phase III, Bathinda.
Mr.Pardeep Kansal s/o Sh.Roop Lal, R/o House No.F-354, MC Colony, Abohar Road, Fazilka-152123 (Punjab). Presently residing at H.No.1154, Model Town, Phase III, Bathinda.
…… Complainants
V e r s u s
Unitech Limited, Marketing Office at SCO 189-90-91, Sector 17C, Chandigarh, through its Authorized Signatory.
11nd Address:- Registered Office at 6, Community Centre, Saket, New Delhi-110017
Alice Developers Private Limited, having office at 6, Community Centre, Saket, New Delhi-110017.
….Opposite parties.
Argued by:- Sh.Gitish Bhardwaj, Advocate for the complainants.
Mrs.Vertika H. Singh, Advocate for opposite party No.1.
Ms.Kshitija Mittal, Advocate for opposite party no.2.
Kamal Jit Singh Kanwar S/o Late Shri Bidhi Singh Kanwar R/o Flat No.1113, Silver City Towers, D Block, Ambala Chandigarh Highway, Zirakpur, District Mohali-140603.
…… Complainant
V e r s u s
Unitech Limited, Registered Office at 6, Community Centre, Saket, New Delhi-110017, through its Managing Director/ Director/Authorized Signatory.
2nd Address: - Unitech Limited, Real Estate Division (Marketing) 5th Floor, Tower A, Signature Towers, South City, NH-8, Gurgaon-122001.
Alice Developers Pvt. Ltd., Office at Basement 6, Community Centre, Saket, New Delh-110017, through its Managing Director/Director/Authorized Signatory.
Ramesh Chandra, Director of Unitech Limited, 6, Community Centre, Saket, New Delhi-110017.
Ajay Chandra, Director of Unitech Limited, 6, Community Centre, Saket, New Delhi-110017.
Sanjay Chandra, Director of Unitech Limited, 6, Community Centre, Saket, New Delhi-110017.
Sanjeev Hingorani, Director of Alice Developers Pvt. Ltd., Registered Office at Basement 6, Community Centre, Saket, New Delhi (Deleted as per order dated 06.01.2018).
Satbir Singh Yadav, Director of Alice Developers Pvt. Ltd., Registered Office at Basement 6, Community Centre, Saket, New Delhi
…. Opposite parties
Argued by:- Sh.Munish Goel, Advocate for the complainant.
Mrs.Vertika H. Singh, Advocate for opposite party no.1.
Opposite parties no.3 to 5 exparte.
Opposite party no.6 deleted vide order dated 06.01.2018
Ms.Kshitija Mittal, Advocate for opposite parties no.2 and 7.
Complaints under Section 17 of the Consumer Protection Act, 1986
BEFORE: JUSTICE JASBIR SINGH (RETD.), PRESIDENT.
MR. DEV RAJ, MEMBER.
MRS. PADMA PANDEY, MEMBER.
PER JUSTICE JASBIR SINGH (RETD.), PRESIDENT
By this order, we propose to dispose of the aforesaid eight (08) consumer complaints. Arguments were heard in common, in the above cases, as the issues involved therein, except minor variations, here and there, of law and facts are the same. At the time of arguments, on 20.03.2018, it was agreed between the contesting parties, that, in view of above, all the eight complaints can be disposed of, by passing a consolidated order. In all the complaints aforesaid (including CC No.666 of 2017) at the time of arguments, the complainants have pressed their prayer regarding refund of the amount deposited with the opposite parties/builder, towards price of their respective units, alongwith interest, compensation etc.
Under above circumstances, to dictate order, facts are being taken from consumer complaint bearing no.666 of 2017, titled as Ashok Kumar Mahajan and another Vs. Unitech Limited and ors. The complainants came across an advertisement, published by opposite parties no.1 to 4, regarding launching of their residential project, under the name and style ‘UNIHOMES, situated in Mega Township, Uniworld City, Sector 107, Mohali, Punjab. It was stated that believing many tall claims raised that the project will be equipped with all the best facilities, which are needed to live comfortable life etc., the complainants decided to purchase a flat therein, so that they are able to live a peaceful life, in their old age. On making payment of Rs.2,16,967/- towards booking amount, the complainants were allotted flat no.A-02-0049 (3 bedroom), measuring 1077.00 square feet, (in short the unit) in the said project, vide allotment letter dated 22.09.2009 Annexure C-1. Total sale consideration of the said unit was fixed at Rs.22,81,304/-, which included Rs.21,69,677/- towards basic price; and Rs.1,11,627/- towards External Development Charges (EDC). The complainants opted for construction linked payment plan. Buyer’s Agreement was executed between the parties on 19.10.2009.
It was averred that, as per Clause 4 (a) (i) of the Agreement, after construction, possession of the unit was agreed to be given within 36 months, from the date of signing of the same. As per condition no.4.b. of the Agreement, it was incumbent upon opposite parties no.1 to 4, to give notice to the complainants, in case of delay in handing over possession of the unit, beyond the period of 36 months, subject to force majeure circumstances. It was further provided in condition no.4.c. in the Agreement that penalty @Rs.5/- per square feet, per month of the saleable area, for the period of delay in delivery of possession of the unit shall be paid by opposite parties no.1 to 4, to the complainants. It was further stated that as per the Agreement, end date to hand over possession of the unit was 18.10.2012.
It was further stated that since the complainants were residing 250 kms, away from the project site, and, it was not possible for them to visit the site, as such, they kept on inquiring about the progress at the site, telephonically, to which opposite parties no.1 to 4 answered that the same was going on as per schedule. Under that impression, as per demands raised by opposite parties no.1 to 4, from time to time, the complainants continued to make payment and in all, they had paid an amount of Rs.20,77,718/-, till 23.07.2013, towards price of the unit, in question. However, possession of the unit was not offered and delivered to the complainants by the stipulated date. Thereafter, the complainants visited the site, and were shocked to see that there was no development. Construction work was put to halt.
It was averred that to make payment towards price of the said unit, the complainants had raised loan from proforma opposite party (HDFC), vide Tripartite Agreement dated 12.03.2010 Annexure C-7, for which they are paying heavy rate of interest. It was stated that for non-delivery of possession of the unit, in question, the complainants are facing huge financial loss, as they are forced to live in a rented accommodation, which would have been avoided, had possession of the unit, been delivered in time.
When grievance of the complainants was not redressed, left with no alternative they served notice dated 19.03.2015, requesting opposite parties no.1 to 4, to deliver possession of the unit, in question, but the same was not even replied. Visits made to the office of opposite parties no.1 to 4, also did not yield any result. It was further stated that despite making numerous requests to opposite parties no.1 to 4 to complete construction and deliver possession of the unit, needful was not done. Hence, this complaint, seeking issuance of directions to opposite parties no.1 to 4 either to deliver possession of the unit, in question, or in the alternative, to refund the amount alongwith interest @18% p.a., compensation, litigation expenses etc. However, at the time of arguments, alternative relief of refund alongwith other reliefs was pressed by Counsel for the complainants.
Notice was served upon the opposite parties.
Opposite parties no.1 to 3, filed their joint written version, wherein, an attempt has been made to wash of their hands, by stating that Buyer’s Agreement was signed between opposite party no.4 and the complainants. As per Development Agreement dated 01.12.2008 opposite party no.4 was to construct the units and hand over possession thereof, to the purchasers. As opposite party no.4 has failed to do so, as such, no liability can be imposed upon opposite parties no.1 to 3, which were only to receive payments from the allottees, on behalf of opposite party no.4. Territorial jurisdiction of this Commission was challenged by stating that Buyer’s Agreement was signed at New Delhi and also all the payments were received by Gurgaon Office of opposite parties no.1 to 4. Receipts were also issued by the said office. It was further stated that all demands to make payment were raised by opposite party no.4, which was collected and deposited in a designated account of the developer i.e. opposite party no.4 and the unit, in question, is also situated at Mohali. Pecuniary jurisdiction of this Commission was also disputed. It was further stated that the complaint filed is beyond limitation. It was further stated that the unit, in question, was purchased for future gain, as such, the complainants being investors, would not fall within the definition of consumer, as defined under Section 2 (1) (d) of the Consumer Protection Act, 1986. They are owning other houses also. Rent deed placed on record by them is a procured one, just to mislead this Commission.
On merits, it was admitted that the complainants had purchased the residential unit, in question, in the manner, referred to above. Payments made by the complainants towards price of the unit, are also not disputed. Fact qua price of the unit, as mentioned in the complaint was also not disputed. It was further stated that the dispute being a contractual one, consumer complaint is not maintainable, and only a Civil Court, could adjudicate the same. It was further stated that, in fact, the complainants should have filed a civil suit for recovery of the amount deposited.
It was not disputed that as per condition no. 4.a.(i) of the Agreement, possession of the fully developed unit, was to be delivered to the complainants within a period of 36 months, from the date of execution of the same (Agreement), subject to force majeure conditions. The said period was extendable and till such time, the sale deed is executed, the builder was to remain owner of the property, in question. It was further stated that it was opposite party no.4, which was to construct the units and deliver possession of the same, as such, no liability can be fastened upon opposite parties no.1 to 3, as they were only the confirming parties. It is averred that for any delay, stipulated penalty has been provided in the Agreement, which safeguarded rights of the complainants. It was further stated that opposite parties no.1 to 3 had no liability to make refund of the amount deposited. It was further stated that vide Development Buyer Agreement dated 01.12.2008, opposite party no.4 was assigned development rights, with regard to more than 33.2438 acres of land, in which unit allotted to the complainants is situated. Opposite party no.4 was also authorized to use Unitech Trade Mark and Corporate Logo, for various purposes, such as promotional, marketing, advertisements etc. It was averred that all necessary approvals have been obtained from the competent Authorities, as far as the project, in question, is concerned. It was stated that since the complainants have not affixed proper court fee, as such, the complaint is liable to be dismissed, on this ground alone. The remaining averments were denied, being wrong. It is prayed that the complaint having no substance, be dismissed.
Opposite party no.4, in its written statement took up almost the same objections, as have been taken by opposite parties no.1 to 3, in their joint written statement. However, it was additionally stated that delay, if any, took place on account of force majeure circumstances, faced by opposite party no.4 and it is making best efforts to deliver possession of the unit, in question, to the complainants. It was averred that construction work of the unit is complete and opposite party no.4 had already applied for completion certificate vide letter dated 03.02.2016. It was pleaded that the complainants are defaulters and cannot seek any relief, under the Agreement.
Opposite party no.5, in its written reply stated that since no allegations have been levelled against it, as such, the complaint against it be ordered to be dismissed. However, it was stated that, in case, this Commission comes to the conclusion that the complainants are entitled for refund of the amount deposited, direction be passed that opposite party no.5 will have first charge, on the amount due to be paid by them, out of the loan amount, raised from it, for making payment towards price of the said unit.
In the rejoinder filed, the complainants reiterated all the averments contained in the complaint, and repudiated those, contained in written version of opposite parties no.1 to 4.
The contesting parties led evidence in support of their cases and raised arguments in terms of pleadings noted in earlier part of this order, which were heard, in detail.
Before making any reference to the merits of the case, we will like to decide an objection raised by opposite parties no.1 to 3 that for want of pecuniary jurisdiction, it is not open to this Commission to entertain and adjudicate this complaint. It may be stated here that as per Section 17 (1) (a) of the Act, the State Consumer Disputes Redressal Commission shall have pecuniary jurisdiction to entertain any complaint, complaints where the value of the goods or services and compensation, if any, claimed exceeds rupees twenty lakhs but does not exceed rupees one crore. It was also so elucidated elaborately by a Large Bench of the National Commission in the case titled as Ambrish Kumar Shukla and 21 ors. Vs. Ferrous Infrastructure Pvt. Ltd., Consumer Case No.97 of 2016, decided on 07.10.2016. Relevant part of the said order reads thus:-
“It is evident from a bare perusal of Sections 21, 17 and 11 of the Consumer Protection Act that it’s the value of the goods or services and the compensation, if any, claimed which determines the pecuniary jurisdiction of the Consumer Forum. The Act does not envisage determination of the pecuniary jurisdiction based upon the cost of removing the deficiencies in the goods purchased or the services to be rendered to the consumer. Therefore, the cost of removing the defects or deficiencies in the goods or the services would have no bearing on the determination of the pecuniary jurisdiction. If the aggregate of the value of the goods purchased or the services hired or availed of by a consumer, when added to the compensation, if any, claimed in the complaint by him, exceeds Rs. 1.00 crore, it is this Commission alone which would have the pecuniary jurisdiction to entertain the complaint. For instance if a person purchases a machine for more than Rs.1.00 crore, a manufacturing defect is found in the machine and the cost of removing the said defect is Rs.10.00 lacs, it is the aggregate of the sale consideration paid by the consumer for the machine and compensation, if any, claimed in the complaint which would determine the pecuniary jurisdiction of the Consumer Forum. Similarly, if for instance, a house is sold for more than Rs.1.00 crore, certain defects are found in the house, and the cost of removing those defects is Rs.5.00 lacs, the complaint would have to be filed before this Commission, the value of the services itself being more than Rs.1.00 crore. ”
In the present case also, total value of the unit, in question, i.e. Rs.22,81,304/-, plus compensation claimed by way of interest @18% p.a. on the deposited amount of Rs.20,77,718/-and also Rs.6 lacs, for mental agony and physical harassment, if taken into consideration, in no way, exceeds Rs.1 crore. Thus, this Commission has got pecuniary Jurisdiction, to entertain and decide the complaint. The objection taken by opposite parties no.1 to 3, that this Commission lacks pecuniary jurisdiction, being devoid of merit, must fail and the same stands rejected.
The next question, that falls for consideration, is, as to whether, the complainants are speculators, and that they have purchased the unit, in question, for earning profits i.e. for resale, as and when there is escalation in the prices of real estate, therefore, they would not fall within the definition of consumer, as defined by Section 2 (1) (d) (ii) of the Act., as alleged by the opposite parties no.1 to 4. It may be stated here that there is nothing, on record to show that the complainants are property dealers and are indulged in sale and purchase of property, on regular basis. In para no.1 of the complaint, supported by their affidavit, it has been specifically stated by the complainants that the unit, in question was purchased by them, for their residential purpose. Thus, in the absence of any cogent evidence, in support of the objection raised by opposite parties no.1 to 4 mere bald assertion to that effect, cannot be taken into consideration. In a case titled as Kavita Ahuja Vs. Shipra Estate Ltd. and Jai Krishna Estate Developer Pvt. Ltd. 2016 (1) CPJ 31, 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. Similar view was reiterated by the National Commission, in DLF Universal Limited Vs Nirmala Devi Gupta, 2016 (2) CPJ 316. The principle of law, laid down, in the aforesaid cases, is fully applicable to the present case. The complainants, thus, fall within the definition of a ‘consumer’, as defined under Section 2(1)(d) of the Act. Such an objection, taken by opposite parties no.1 to 4 in their written reply, therefore, being devoid of merit, is rejected.
At the time of arguments also, Counsel for opposite parties no.1 to 4, in consumer complaints bearing nos. 765 of 2017 and 760 of 2017 contended that since the complainants therein, are NRIs, as such, they would not fall within the definition of consumer. The plea taken stands rejected. It may be stated here that, no law debars NRIs, with roots in India, to purchase a residential property in India. Under similar circumstances, the Hon`ble National Commission, in a case titled as Smt. Reshma Bhagat & Anr. Vs. M/s Supertech Ltd. Consumer Complaint No. 118 of 2012, decided on 04.01.2016, held as under:-
“We are unable to clap any significance with these faint arguments. It must be borne in mind that after selling the property at Bangalore, and in order to save the money from riggers of capital gain tax, under Section 54 of the Income Tax Act, 1961, there lies no rub in getting the property, anywhere, in whole of India. There is not even an iota of evidence that they are going to earn anything from the flat in dispute. From the evidence, it is apparent that the same had been purchased for the residence of the complainants. Moreover, Sh. Tarun S. Bhagat, who is an independent person. It cannot be made a ‘rule of thumb’ that every NRI cannot own a property in India. NRIs do come to India, every now and then. Most of the NRIs have to return to their native land. Each NRI wants a house in India. He is an independent person and can purchase any house in India, in his own name.”
In view of above, plea raised by Counsel for opposite parties no.1 to 4 stands rejected.
The next question, that falls for consideration, is, as to whether, this Commission has got territorial Jurisdiction, to entertain and decide the complaint, or not. According to Section 17 of the Act, a consumer complaint can be filed by the complainants, before the State Consumer Disputes Redressal Commission, within the territorial Jurisdiction whereof, a part of cause of action arose to them. In the instant case, it is evident from contents of the Buyer’s Agreement, that it has specifically been stated that the Company i.e. Unitech is a Public Limited, having its Marketing Office at Unitech Limited, SCO 189-90-91, Sector 17C, Chandigarh. It has also come on record that on asking of the complainants, at one point of time, account statement/customer ledger (at pages 57 and 58 of the file) pertaining to their unit was issued by Marketing Office of the Company, at Chandigarh, at it bears the address of Chandigarh Office of opposite parties no.1 to 3 as “Unitech Limited, SCO 189-90-91, Sector 17C, Chandigarh”. Furthermore, it is also evident, that Tripartite Agreement dated 12.03.2010 Annexure C-7 was also executed between the parties, wherein, Marketing Office of the Company, located at Chandigarh, has also been made a party. Furthermore, it is also evident from the document Annexure C-6 i.e. Home Loan Agreement (at page 77 of the file), that an amount of Rs.50,000/- was credited in account no.0004287247, CITI Bank, Chandigarh, pertaining to Unitech Uniworld City Mohali Unihomes. Furthermore, it is also evident from payment receipts at pages, 47,48,49, 50 and 51, that cheques were issued in favour of opposite parties no.1 to 4, towards price of the said unit, “AT PAR CHANDIGARH”. Not only this, it has been candidly admitted by opposite parties no.1 to 3, in their joint written reply (para no.14 of the reply on merits) that they had received payment towards price of the said unit, from the complainants being facilitator. If that is so, it can safely be said that the Marketing Office of the Company at Chandigarh, was actively playing a significant role, in respect of the transaction in question, meaning thereby that it was actually carrying on business for gains, from Chandigarh. Under these circumstances, it can very well be said that this Commission, at Chandigarh, has territorial jurisdiction, to entertain and decide this complaint, in view of Section 17 (2) (a) (b) and (c) of the Act.
Not only as above, since it has been proved on record that Marketing office of the Company is located at Chandigarh; the project, in question, was marketed from Chandigarh; in that case also, this Commission has territorial jurisdiction to entertain and decide this complaint, in view of law laid down by the Hon’ble Supreme Court of India in State of Punjab Vs. Nohar Chand, 1984 SCR (3) 839, in which it was held that the Court(s), in whose Jurisdiction, products/goods are marketed, will have the territorial Jurisdiction to entertain and decide a complaint and also in view of Section 2 (1) (aa) and (b) of the Act. Not only as above, similar findings were given by the National Commission, in a case titled as Parsvnath Developers and anr. Vs. Som Nath Sharma and 2 ors., First Appeal No.1613 of 2016, decided on 21.03.2017. Relevant contents of the said order read thus:-
“Regarding the question of territorial jurisdiction, the some part of cause of action accrues in Delhi as the agreement was signed at New Delhi. The payment was received at Panchkula in the office of OPs 1 to 3. Similar issue was decided by this Commission in the case of Ravinder Kumar Bajaj vs. Parsvnath Developers Pvt. Ltd. & Ors., first appeal No. 515 of 2016 decided on 23.08.2016 qua same very builder. It was held that “officers of opposite parties no.1 to 3 sitting in Branch Office at Chandigarh were actively participating in marketing and propagating the project, in question. They were dealing with the complainants throughout, by receiving their letters qua progress at the spot and also accepted payment made through cheques. In view of above, objection raised in this regard, stands rejected.”
In view of above, objection taken by opposite parties no.1 to 4, in this regard, therefore, being devoid of merit, must fail, and the same stands rejected.
An objection was also raised by opposite parties no.1 to 4 that the dispute being related to contractual nature, the consumer complaint is not maintainable, and only a Civil Court can decide the case. It may be stated here, that the complainants hired the services of opposite parties no.1 to 4, for purchasing the unit, in the manner, referred to above. According to condition no.4.a.(i) of the Agreement, physical possession of the unit, was to be delivered by opposite parties no.1 to 4, within a period of 36 months, from the date of execution of the same (Agreement) i.e. latest by 18.10.2012 alongwith all basic amenities as mentioned in Article 2.a.(iii) of the Agreement. By not doing so, opposite parties no.1 to 4 have breached the terms and conditions of the said agreement, leading to deficiency in providing service and adoption of unfair trade practice. 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 1986 Act, provides an alternative remedy. Even if, it is assumed that the complainants have a remedy to file a suit, in the Civil Court, the alternative remedy provided under Section 3 of the Act, can also be availed of by them, as they fall, within the definition of consumer. In this view of the matter, objection taken by opposite parties no.1 to 4, in this regard, being devoid of merit, must fail, and the same stands rejected.
The above objection taken by opposite parties no.1 to 4 is also bereft of merit, in view of judgment passed by the Hon’ble National Commission, titled as M/s. Karwa Developers & 3 Ors. Vs. Shree Vinayak Co-Operative Housing Society Ltd. & 3 Ors., First Appeal No. 980 of 2016, decided on 3rd March, 2017, wherein, a similar plea of the builder was negated, while holding as under:-
“We also do not find any substance in the plea taken by the appellant that under clause 14(a) of the development agreement, the complainant was required to file a civil suit under the Specific Relief Act only, because they were asking for monetary relief. The State Commission rightly stated that the relief sought in the complaint were on account of deficiencies committed by the OP Developers, vis-à-vis, the society. Since there is a specific clause in the agreement for giving the possession of the flat within specific time frame and penalty has been provided if the developers failed to develop the same, the society was well within its rights to file consumer complaint against the OP builder.”
It is not in dispute that opposite parties no.1 to 4 have failed to deliver possession of the unit, in question, within the stipulated period or even as on today. The complainants have sought refund of the amount paid, alongwith interest, compensation etc. It is to be analyzed as to whether, in view of facts noted above; pleadings on record and arguments raised, it is open to the complainants, to claim above said relief or not.
It is not in dispute that the complainants purchased the unit, in question, vide Agreement dated 19.10.2009. Constructed unit was sold in favour of the complainants, for an amount of Rs.22,81,304/-, which includes basic sale price, external development charges etc. In all, the complainants have paid an amount of Rs.20,77,718/-, towards price of the said unit. As per condition no. 4.a.(i) of the Agreement, possession of the fully constructed unit, in a developed project, was to be delivered to the complainants within a period of 36 months, from the date of execution of the same (Agreement), subject to force majeure conditions i.e. on or before 18.10.2012. Before delivery of possession, as per condition no.4.b. of the Agreement, it was incumbent upon opposite parties no.1 to 4, to give notice to the complainants, in case of delay in handing over possession of the unit, beyond the period of 36 months, subject to force majeure circumstances. It was further provided in condition no.4.c. in the Agreement that penalty @Rs.5/- per square feet, per month of the saleable area, for the period of delay in delivery of possession of the flat shall be paid by opposite parties no.1 to 4, to the complainants. The due date of offer of possession of the unit i.e. 18.10.2012 already stood expired. Now it is April 2018.
Contention of Counsel for the complainants that construction at the spot is not complete needs acceptance. By the date, when arguments were addressed before us, possession has not been offered to the complainants. It is not a case of opposite parties no.1 to 4 that possession of the unit was ready to be delivered by the stipulated date, but the complainants have refused to come forward to accept the same (possession). Rather, at the time of arguments, Counsel for opposite parties no.1 to 4 failed to give any positive date/time, as to when, possession of the constructed unit will be given. It is only said that opposite party no.4 is making best efforts to deliver possession, as it has already applied for issuance of completion certificate vide letter dated 03.02.2016. Qua this very project, in a large number of cases, it has been found as a matter of fact that construction has come to stand still. As stated above, even at the time of arguments, no commitment was made to deliver possession of the unit, in near future.
Even otherwise, not even a single convincing document has been placed on record, by opposite parties no.1 to 4 to prove that the unit, in question, is habitable or that the development at the project is complete in all respects. It is well settled law that the onus to prove that the project has been completed and the area/site, in question, is fully developed, is on the builder/opposite parties no.1 to 4. It was so said by the National Commission, in Emaar MGF Land Limited and another Vs. Krishan Chander Chandna, First Appeal No.873 of 2013 decided on 29.09.2014. In the present case, it is very strange that not even a single document has been placed on record, by opposite parties no.1 to 4, in respect of the flat, in question, to prove that the construction is complete and they are actually ready for offer and delivery of possession. In case, all the development activities had been undertaken and construction of the flats is complete at the project site, then it was for opposite parties no.1 to 4, which could be said to be in possession of the best evidence, to produce cogent and convincing documentary evidence, in the shape of the reports and affidavits of the Engineers/Architects, as they could be said to be the best persons, to testify, as to whether, all these development and construction activities, had been undertaken and completed at the site or not, but they failed to do so. At the same time, opposite parties no.1 to 4 were also required to produce on record, a copy of the occupation and partial/final Completion Certificates (if obtained), having been issued by the Competent Authorities, which could be said to be best evidence, to prove their case, but they miserably failed to do that also. Mere placing on record an application dated 03.02.2016, allegedly sent to the Competent Authorities, seeking completion certificate in respect of the project, in question, is of no help to opposite parties no.1 to 4.
Under these circumstances, it can be said that there is a material violation on the part of opposite parties no.1 to 4. At the same time, it is also a settled law that when there is a material violation on the part of the builder, in not handing over possession by the stipulated date, the purchaser is not bound to accept the offer, even if the same is made at a belated stage and on the other hand, can seek refund of amount paid. It was so said by the Hon’ble National Commission, in a case titled as Aashish Oberai Vs. Emaar MGF Land Limited, Consumer Case No. 70 of 2015, decided on 14 Sep 2016, wherein, under similar circumstances, while negating the plea taken by the builder, it was held as under:-
“I am in agreement with the learned senior counsel for the complainants that considering the default on the part of opposite parties no.1 and 2 in performing its contractual obligation, the complainants cannot be compelled to accept the offer of possession at this belated stage and therefore, is entitled to refund the entire amount paid by him along with reasonable compensation, in the form of interest.”
Not only as above, in a case titled as Brig Ajay Raina (Retd.) and another Vs. M/s Unitech Limited, Consumer Complaint No.59 of 2016, decided on 24.05.2016, wherein possession was offered after a long delay, this Commission, while relying upon the judgments rendered by the Hon`ble National Commission, ordered refund to the complainants, while holding 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.
Furthermore, in another case titled as M/s. Emaar MGF Land Ltd. & Anr. Vs. Dr.Manuj Chhabra, First Appeal No.1028 of 2015, decided on 19.04.2016, the Hon’ble National Commission, under similar circumstances, 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”.
In the present case, as stated above, possession of the unit, has not even been offered, what to speak of delay in offering thereof. Under these circumstances, it is held that since there was a material violation on the part of opposite parties no.1 to 4, in not offering and handing over possession of the unit by the stipulated date or by the time, this complaint was filed, the complainants are, thus, entitled to get refund of amount actually deposited by them. In view of above facts of the case, opposite parties no.1 to 4 are also under an obligation to compensate the complainants, for inflicting mental agony and causing physical harassment to them, as also escalation in prices.
No doubt, a plea was also taken by opposite parties no.1 to 4, that delay aforesaid, is attributable to the force majeure circumstances faced by them. It may be stated here that mere bald plea taken by opposite parties no.1 to 4 has no legs to stand. To substantiate their stand, opposite parties no.1 to 4 were required to place on record cogent and convincing evidence on record, to convince this Commission.
As such, it can very well be said that such a plea has been taken by opposite parties no.1 to 4, just with a view to evade their liability. Under these circumstances, no help, therefore, can be drawn by opposite parties no.1 to 4, from Clause 8 (b) of the Agreement, relating to force majeure circumstances, as far as the present cases are concerned. The complainants are certainly entitled to get refund of the amount deposited by them, towards price of the said unit, as held above.
It is to be further seen, as to whether, interest on the amount refunded, can be granted in favour of the complainants. It is not in dispute that an amount of Rs.20,77,718/- was paid by the complainants, without getting anything, in lieu thereof. The said amount has been used by opposite parties no.1 to 4, for their own benefit. There is no dispute that for making delayed payments, opposite parties no.1 to 4 were charging heavy rate of interest (compounded quarterly @18% per annum) as per Article 2.c. of the Agreement, for the period of delay in making payment of instalments. It is well settled law that whenever money has been received by a party and when its refund is ordered, the right to get interest follows, as a matter of course. The obligation to refund money received and retained without right implies and carries with it, the said right. 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). In view of above, the complainants are certainly entitled to get refund of the amount deposited by them, alongwith interest @15% compounded quarterly, (less than the rate of interest charged by opposite parties no.1 to 4, in case of delayed payment i.e. 18% compounded quarterly, as per Article 2.c. of the Agreement), till realization.
However, since in the connected complaint case bearing no.761 of 2017, the complainant has sought refund of amount deposited, alongwith simple interest @15% per annum, as such, this Commission is bound to grant him interest, at such a rate, on the amount to be refunded by the Company, alongwith compensation and litigation expenses.
Since it has been held above that the complainants are entitled to refund of the amount deposited alongwith interest, as such, the plea taken by opposite parties no.1 to 4 that they are ready to pay delayed compensation @Rs.5/- per square feet, per month, of the area of the unit, in question, for the period of delay cannot be taken into consideration. Had possession of the unit, in question, been sought by the complainants, the matter would have been different, and in those circumstances, necessary directions would have been passed, as per law.
The next question, that falls for consideration, is, as to whether, the complaint filed by the complainants, was within limitation or not. It may be stated here that since it is an admitted case that offer of possession of the unit, in question, could not be made by the stipulated date or even till date for want of completion of construction, and on the other hand, amount deposited was also not refunded to the complainants alongwith interest, as such, there is continuing cause of action, in her favour, in view of principle of law laid down, in Lata Construction & Ors. Vs. Dr. Rameshchandra Ramniklal Shahand Anr., II 2000 (1) CPC 269=AIR 1999 SC 380 and Meerut Development Authority Vs. Mukesh Kumar Gupta, IV (2012) CPJ 12 (SC). Under these circumstances, it is held that the complaint is not at all barred by limitation. The submission of Counsel for opposite parties no.1 to 4, in this regard, being devoid of merit, must fail, and the same stands rejected.
As far as the liability of opposite parties no.1 to 3, is concerned, it may be stated here that once it has been proved on record that the Company i.e. Unitech Limited was a necessary party to the Agreements aforesaid; it also marketed the project, in question; and had also received substantial amount, from the complainants, towards the said unit, as such, they (opposite parties no.1 to 3) are equally liable alongwith opposite party no.4/Alice Developers Private Limited, to refund the amount paid by them (complainants). The objection raised by opposite parties no.1 to 3 to the effect that they being facilitator or confirming parties, are not liable to refund the amount paid by the complainants, alongwith opposite party no.4, being devoid of merit, stands rejected.
As far as the objection regarding court fees is concerned, it may be stated here that we have carefully gone through the record, and found that correct fee to the tune of Rs.2,000/- vide demand Bankers cheque dated 05.09.2017 has been paid by the complainants. Objection raised by Counsel for opposite parties no.1 to 4, in this regard, stands rejected.
Now, we will deal with an objection, raised by opposite parties no.1 to 3, in connected case bearing no.765 of 2017, that in the face of existence of provision 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.
It may be stated here that this issue has already been dealt with, by this Commission, in a case titled as ‘Sarbjit Singh Vs. Puma Realtors Private Limited’, IV (2016) CPJ 126, while relying upon ratio of judgments of the Hon’ble Supreme Court, titled as 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), 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), and held that even in the face of existence of arbitration clause in an Agreement/Allotment Letter, to settle disputes between the parties through Arbitration, in terms of provisions of Section 8 (amended) of 1996 Act, this Commission has jurisdiction to entertain the consumer complaint. Recently, the larger Bench of the National Commission in a case titled as Aftab Singh Vs. Emaar MGF Land Limited & Anr., Consumer Case No. 701 of 2015, vide order dated 13.07.2017, has held that an Arbitration Clause in the Agreements between the complainants and the Builder cannot circumscribe the jurisdiction of a Consumer Fora, notwithstanding the amendments made to Section 8 of the Arbitration Act. Feeling aggrieved against the said findings, the builder filed Civil Appeal bearing No.23512-23513 of 2017 before the Hon’ble Supreme Court of India, which was dismissed vide order dated 13.02.2018.
In view of the above, the objection raised by opposite parties no.1 to 3, in this regard, being devoid of merit is rejected.
No other point, was urged, by the contesting parties, in all the cases.
For the reasons recorded above, all the complaints are partly accepted, with costs, in the following manner:-
Consumer complaint no.666 of 2017. Opposite parties no.1 to 4 are jointly and severally directed as under:-
To refund the amount of Rs.20,77,718/-, alongwith @15% compounded quarterly, from the respective dates of deposits onwards.
To pay compensation, in the sum of Rs.1 lac, for causing mental agony and physical harassment, to the complainants, as also escalation in prices.
To pay cost of litigation, to the tune of Rs.33,000/- to the complainants.
Complaint against opposite party no.5 is dismissed with no order as to costs.
Consumer complaint no. 707 of 2017. The opposite parties no.1 and 2 are jointly and severally directed as under:-
To refund the amount of Rs.21,32,060/- to the complainant, alongwith interest @15% compounded quarterly, from the respective dates of deposits onwards.
To pay compensation, in the sum of Rs.1 lac, for causing mental agony and physical harassment, to the complainant, as also escalation in prices.
To pay cost of litigation, to the tune of Rs.33,000/- to the complainant.
Consumer complaint no. 775 of 2017. The opposite parties are jointly and severally directed as under:-
To refund the amount of Rs.38,58,011/- to the complainants, alongwith interest @15% compounded quarterly, starting from the dates of deposit of respective amounts when endorsement was made in their favour, onwards.
To pay compensation, in the sum of Rs.1.50 lacs, for causing mental agony and physical harassment, to the complainants, as also escalation in prices.
To pay cost of litigation, to the tune of Rs.33,000/- to the complainants.
Consumer complaint no. 761 of 2017. The opposite parties are jointly and severally directed as under:-
To refund the amount of Rs.47,65,395/- to the complainant, alongwith simple interest @15% p.a., from the respective dates of deposits onwards.
To pay compensation, in the sum of Rs.1.50 lacs, for causing mental agony and physical harassment, to the complainant, as also escalation in prices.
To pay cost of litigation, to the tune of Rs.33,000/- to the complainant.
Consumer complaint no. 765 of 2017. The opposite parties are jointly and severally directed as under:-
To refund the amount of Rs.33,46,156/- to the complainants, alongwith interest @15% compounded quarterly, from the respective dates of deposits onwards.
To pay compensation, in the sum of Rs.1.50 lacs, for causing mental agony and physical harassment, to the complainants, as also escalation in prices.
To pay cost of litigation, to the tune of Rs.33,000/- to the complainants.
Consumer complaint no. 760 of 2017. The opposite parties are jointly and severally directed as under:-
To refund the amount of Rs.24,91,048/- to the complainants, alongwith interest @15% compounded quarterly, from the respective dates of deposits onwards.
To pay compensation, in the sum of Rs.1 lac, for causing mental agony and physical harassment, to the complainants, as also escalation in prices.
To pay cost of litigation, to the tune of Rs.33,000/- to the complainants.
Consumer complaint no. 785 of 2017. The opposite parties are jointly and severally directed as under:-
To refund the amount of Rs.28,34,308/- to the complainants, alongwith interest @15% compounded quarterly, from the respective dates of deposits onwards.
To pay compensation, in the sum of Rs.1 lac, for causing mental agony and physical harassment, to the complainants, as also escalation in prices.
To pay cost of litigation, to the tune of Rs.33,000/- to the complainants.
Consumer complaint no. 813 of 2017. The opposite parties no.1 to 5 and 7 are jointly and severally directed as under:-
To refund the amount of Rs.24,63,655/- to the complainant, alongwith interest @15% compounded quarterly, from the respective dates of deposits onwards.
To pay compensation, in the sum of Rs.1 lac, for causing mental agony and physical harassment, to the complainant, as also escalation in prices.
To pay cost of litigation, to the tune of Rs.33,000/- to the complainant.
The payment of awarded amounts mentioned at sr.nos.(i) to (iii), shall be made, within a period of 02 (two) months from the date of receipt of a certified copy of this order, failing which, the amount mentioned at sr.no.(i) shall carry penal interest @18%, instead of 15%, in the manner ordered above, from the respective dates of deposits onwards (in the case of resale from the date of endorsement onwards) and interest @15% p.a. simple, on the amounts mentioned at sr.nos.(ii) and (iii), from the date of filing of respective complaints, till realization.
However, it is made clear that, if the complainant(s), in above cases, have availed loan facility from any banking or financial institution, for making payment of installments towards the said unit, it will have the first charge of the amount payable, to the extent, the same is due to be paid by them (complainants). It is further made clear that, in case, if the complainant(s), in any of the complaints aforesaid, have purchased the respective unit(s), under subvention scheme, the amount so ordered to be refunded, shall be paid by opposite parties (Unitech Limited and Alice Developers Pvt. Ltd.), after deducting/adjusting the amount paid by them, towards Pre-EMI interest, to the Bank concerned.
Certified copy of this order be placed on all the connected complaint files, referred to above.
Certified Copies of this order be sent to the parties, free of charge.
The file be consigned to Record Room, after completion.
Pronounced.
11.04.2018
Sd/-
[JUSTICE JASBIR SINGH (RETD.)]
PRESIDENT
Sd/-
(DEV RAJ)
MEMBER
Sd/-
(PADMA PANDEY)
MEMBER
Rg.
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