COMPENSATION AWARDED FROM THE COMMITTED DATE OF
POSSESSION TILL THE DATE POSSESSION IS OFFERED
1. Pradeep Narula v. Granite Gate Properties - Consumer Complaint No. 315
of 2014 Dated 23rd August, 2016
Facts: Mr. Pradeep Narula (hereinafter referred to as the ‘Complainant’)
booked a residential apartment with Granite Gate Properties (hereinafter
referred to as the ‘Builder’).
In furtherance to booking a residential apartment with the Builder, the
Builder issued an allotment letter dated June 28, 2010 to the Complainant.
Additionally, the parties entered into an Apartment Buyers Agreement on
June 29, 2010, according to which, the Builder was to endeavor to
complete the construction within 39 months from the date of allotment, i.e.
the possession was to be delivered by September 27, 2013. The possession
however was not offered to the Complainant by the said date and he was
informed that the possession would not be given before July 2014. The
aforesaid deadline was later extended till December 31, 2014. Being aggrieved
by the said delay, the Complainant approached the Commission against the
Builder.
Held: The Commission held that the Builder was under a contractual
obligation to complete the construction and hand over possession of the
apartments to the Complainant within 39 months from the date of allotment,
and the Builder had failed to do so and none of the reasons given by the
Builder were justified.
Compensation Paid: The Commission directed the Builder to complete the
construction and hand over possession before 31.01.2017, failing which, they
were to pay compensation in the form of simple interest @ 10% per annum
from the committed date of possession till the date possession is offered to
the apartment owner. Accordingly the Commission ordered the Builder to
pay to the Complainant, compensation to the same effect as mentioned in the
Apartment Buyers Agreement. The Builder was also required to pay Rs.
10,000/- as cost of litigation to the Complainant.
2. Jitendra Balani v. Unitech - Consumer Case No. 510 of 2015 Dated
8th February 2016
Facts: The Complainants (being Jitendra Balani and others, hereinafter
referred to as the ‘Complainants’) had booked residential apartments with
Unitech (hereinafter referred to as the ‘Builder’).
In furtherance to the same, a Buyer’s Agreement dated 16.04.2010 was
executed between them. The Builder was required to deliver possession of the
flat to the Complainants within 36 months from the date of the Buyer’s
Agreement. The grievance of the Complainants was that the Builder had
failed to offer possession to them within the time period stipulated in the
Buyer’s Agreement.
Held: Commission found that none of the reasons given by the Builder for the
delay, such as non-availability of construction material or labour, were
tenable. The Commission also rejected the argument of the Builder regarding
government regulations and economic recession being a justification of the
delay. The Buyer’s Agreement was entered into by Complainants with almost
no bargaining power and under the threat of losing the earnest money.
Further, under the Buyer’s Agreement, in case of delay in payment by the
Complainant, an interest at a rate ranging from 18% to 24% per annum
compounded annually was charged.
The Commission concluded that given the delay of almost 5 years an award
in favour of the Complainants was justified.
Compensation Paid: The Builder was directed to deliver possession of the
flats to the Complainants and pay compensation at 12% simple interest as
compensation from the time the possession was due under the Buyer’s
Agreement till the date possession was granted. In case the Builder failed to
deliver possession within the time stipulated by the Order it was to pay
interest at 18% till the possession was finally granted.
In relation with the Complainants who no longer wanted the flats, the
Builder was directed to refund the money paid by them and also pay
interest at 18% from the date of payment. The Builder was also required to
pay a sum of Rs. 5000/- each as cost of litigation in each complaint.
3. AL Lalpuriya Construction v. Marari Poddar - Revision Petition No. 2083 of
2015 Dated 6 October, 2015
Facts: Marari Poddar (hereinafter referred to as the ‘Complainant’), entered
into an agreement with the AL Lalpuriya Construction (hereinafter referred to
as the ‘Builder’) for the purchase of a flat.
The agreement executed between the parties had no particular time period
fixed for handing over possession of the flat to the Complainant. It was
alleged by the Complainant that, according to a letter sent by the Builder to
ICICI Home Finance Co. Ltd. the Builder had assured possession to the
Complainant by October 2005. The last instalment of the total consideration
for the flat was paid on 28.03.2007 and possession of the flat was given to the
Complainant on 27.11.2007. Therefore, aggrieved by the inordinate delay by
the Builder, the Complainant approached the Commission for redressal.
Held: The Commission observed that in the absence of the requisite
documents, and keeping in view that the last instalment of the consideration
was paid on 28.03.2007 and possession of the flat was given to the
Complainant on 27.11.2007, it can be presumed that there was a delay of
about 7-8 months in handing over possession to the Complainant. In any case
the possession wasn’t handed over timely.
Compensation Paid: The Commission upheld the award of Rs. 1 lakh as
compensation to the Complainant for the delay in handing over possession to
him along with interest and the cost of litigation quantified at Rs.
11,000 payable by the Builder.
4. Kaushal Rana v. DLF Commercial Complexes Consumer Complaint No. 88
of 2012 Dated 9th September 2014
Facts: Kaushal Rana (hereinafter referred to as the ‘Complainant’), applied
for allotment of a commercial office to DLF Commercial Complexes Ltd.
(hereinafter referred to as the ‘Builder’), on 11.03.2008.
The Builder raised demand for various sums, which were paid by the
Complainant. However, when construction did not begin on the proposed site
by 2009, the Complainant sought a refund of his money, which though
initially accepted by the Builder was later rejected and his allotment was
cancelled.
Held: The Commission found that no construction had begun and the refund
of money along with interest had been refused by the Builder without any
reason.
Compensation Paid: The Commission directed the Builder to refund the
entire deposited amount with interest @ 18% p.a., from 20.02.2008, till
realization. It also imposed costs of Rupees Two Lakh towards harassment,
mental agony and litigation charges. This was payable within 90 days from
the date the Order, failing which interest would be charged on it at 18% p.a.,
till realization.
