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Mohinder Paul Soni filed a consumer case on 22 Jun 2020 against Ansal Lotus Melange Projects Pvt. Ltd in the StateCommission Consumer Court. The case no is CC/186/2019 and the judgment uploaded on 30 Jul 2020.
STATE CONSUMER DISPUTES REDRESSAL COMMISSION,
U.T., CHANDIGARH
Complaint case No. | : | 186 of 2019 |
Date of Institution | : | 27.08.2019 |
Date of Decision | : | 22.06.2020 |
Mohinder Paul Soni s/o Lt.Sh.Madan Mohan Soni, R/o H.No.583, Green Field, Majitha Road, Amritsar.
Currently residing at H.No.Flat No.588, GBM Apartment, Kurali Road, Kharar.
…… Complainant
Ansal Lotus Melange Projects Private Limited, having its Head Office at 4648/21, Room No.302, 3rd Floor, Shadumal Building, Daryagang, New Delhi-110002 through its Managing Director/Director (Ansal Lotus Melange Projects Private Limited, through its Director/Authorized Signatory, SCO No.12A, Ansal City Centre, Sector 115, Kharar-Landran Road, S.A.S. Nagar, Mohali. (…..Opposite Party
Complaint under Section 17 of the Consumer Protection Act, 1986
BEFORE: JUSTICE RAJ SHEKHAR ATTRI, PRESIDENT.
MRS.PADMA PANDEY, MEMBER.
MR. RAJESH K. ARYA, MEMBER.
Present through Video Conferencing:-
Sh.Rachit Kaushal, Advocate for the complainant.
Sh.Sandeep Kumar, Advocate for opposite party.
JUSTICE RAJ SHEKHAR ATTRI, PRESIDENT
The above captioned complaint has been filed by the complainant seeking refund of amount of Rs.25,08,215/-, allegedly paid by him towards purchase of an apartment in a project launched by the opposite party, under the name and style ‘Orchard County”, Kharar Landran Road, SAS Nagar, Mohali, Punjab (in short the project), total sale price whereof was fixed at Rs.28,83,000/-. It is the case of the complainant that, in the first instance, apartment no.904, 9th Floor, Tower No.10, measuring 1292 square mts. was allotted by the opposite party, in the said project, however, later on, it showed inability to provide the same. Under those circumstances, he was relocated to apartment No.C-441, vide letter dated 01.02.2014, in “Celebrity Suites”, City Centre, Kharar Landran Road, SAS Nagar, Mohali. Allotment Letter/Buyer’s Agreement dated 25.02.2014 (Annexure C-4) was also executed between the parties, in respect of the relocated apartment No.C-441. However, the opposite party failed to deliver possession of the said relocated apartment No.C-441 by 25.02.2017 i.e. within a period of 36 months (30 months plus 6 months grace period) as per Clause 11 of the Allotment Letter dated 25.02.2014 for dearth of construction and development works at the project site. The complainant was shocked to hear from the opposite party that it decided to scrap construction of fourth floor in the proposed complex, wherein, the relocated apartment No.C-441 was allotted to him. As such, he made request to refund the amount, which was not done by the opposite party and was again offered relocation to apartment nos.C-208 and C-209, in the said “Celebrity Suites” with a promise that possession thereof will be offered within a period of three months. Left with no option, he accepted relocation to apartment nos.C-208 and C-209, on the second floor of the said project, as a result whereof, addendum agreement dated 19.11.2018 (Annexure C-6) was executed between the parties. However, possession of the said relocated apartments was also not offered to him by the committed period or thereafter and still he is empty handed.
By stating that the aforesaid act and conduct of the opposite party amount to deficiency in providing service and adoption of unfair trade practice, this complaint has been filed by the complainant seeking directions to the opposite party to refund the entire amount paid alongwith interest, compensation; litigation expenses etc.
Perusal of almost all the documents placed on record relating to relocation aforesaid, reveals that the complainant was, in the first instance, relocated to residential apartment no.C-441 from apartment no.904 and then to residential apartment nos.C-208 and C-209, in the project, referred to above. Infact, the complainant was relocated to the said apartments in the project named “Celebrity Suites” and not to any commercial complex. Our view is fortified from the contents of Allotment Letter dated 25.02.2014 (Annexure C-4) and also Addendum Agreement dated 19.11.2018 (Annexure C-6), wherein, at almost all the places, it has been written that the complainant has been relocated from Service Apartment No.C-441 known as “Celebrity Suites”, Kharar Landran Road, Mohali, Punjab to Service Apartment Nos.C-208 and C-209, second floor, in that very “Celebrity Suites”. Thus, we do not hesitate to say that the complainant was relocated to residential apartments only and not to any commercial units. Such a bald plea taken in the absence of any documentary evidence has no significant value in the eyes of law and is accordingly rejected.
Furthermore, even if for the sake of arguments it is accepted (though not proved) that the said relocated units were commercial ones, even then the complainant cannot be termed as investor because in para no.8 of the reply on merits, it has been clearly stated by the opposite party that it only relocated the complainant to the said units, to compensate him for delay in handing over possession. Thus, on this score also, the opposite party cannot take benefit of its wrong doings, flowing out from its deficiency in service, to defeat the claim of the complainant. Plea taken in this regard, thus, stands rejected.
At the time of arguments, Counsel for the opposite party failed to apprise this Commission, as to by which date, construction will be completed and possession of the relocated apartments, can be handed over to the complainant. However, he has fairly admitted that construction of the relocated apartments is not yet complete and not ready for possession. Not even a single reason has been given for not offering possession of the apartments in question to the complainant. He only stated that the Company is ready to pay compensation by way of interest @9% p.a. for the period of delay, on the deposited amount, till offer of the relocated apartments is made to the complainant. It may be stated here that during pendency of this complaint, this Commission vide order dated 29.08.2019, directed the opposite party through its Counsel, to produce on record the following documents, duly authenticated, to apprise us, as to whether, the Company was competent to launch the project and sell apartments/units therein to the general public including the complainant or not:-
However, it is significant to mention here that even thereafter also during pendency of this complaint, despite the fact that number of opportunities were given to the opposite party to place on record the aforesaid documents, yet, it failed to furnish the same for the reasons best known to it. Under these circumstances, we are of the considered view that by not placing on record the aforesaid documents, the opposite party has attracted an adverse inference against it that the project in question had been launched in contravention of the Punjab Apartment and Property Regulation Act, 1995 i.e. it has failed to obtain necessary approvals/sanctions for launching the said project and selling the units therein to the prospective buyers. Our view is further fortified from the joint written reply filed by the opposite party, wherein, in para nos.4, 5 (preliminary objections) and 7 (reply on merits) it has been candidly stated that period of possession was to run from the date when all approvals/sanctions/permissions in respect of the project in question were received, which clearly means that the same had not been obtained before launching the project in question. This act of the opposite party amounts to deficiency in providing service and adoption of unfair trade practice.
Furthermore, there is nothing on record to show that the opposite party suffered any force majeure circumstances, on account of which, construction and development work at the project site could not be completed and possession of relocated apartments was not delivered to the complainant. If the opposite party has indulged into unfair trade practice and was also deficient in providing service by not offering possession of the apartments to similar located allottees, who have also filed complaints against it and number of litigations are pending against it, resulting into alleged financial losses, then it cannot expect to claim any immunity out of the same from this Commission.
“Merely making possession by a particular date will also not meet the requirement of law and the promotor is under a legal mandate to stipulate a specific date for delivery of possession of the flat in the agreement which he executes with the flat buyer”.
In view of above, plea of the opposite party in this regard also stands rejected.
It is well settled law that non-delivery of possession of apartments/units in a developed project by the promised date or within a reasonable period, is a material violation on the part of a builder and in those circumstances, the allottee is well within his/her right to seek refund of the amount paid. Our view is supported by the principle of law laid down by the Hon’ble Supreme Court of India in the case titled as Pioneer Urban Land & Infrastructure Ltd. Vs. Govindan Raghavan, Civil Appeal No.12238 of 2018, decided on 02.04.2019 and also in Fortune Infrastructure Versus Trevor D’ Lima & Ors. (2018) 5 SCC 442. In the present case also, since there has been an inordinate delay in the matter, which is still continuing one, as the opposite party is not sure as to by which date/year possession of the relocated apartments could be delivered to the complainant, as such, we are of the considered opinion that if we order refund of the amount paid by the complainant alongwith interest, that will meet the ends of justice.
Not only as above, even under Section 12 of the PAPR Act, read with Rule 17 of the Rules thereunder, it has been specifically mentioned that if the amount is to be refunded, it is to be refunded alongwith interest @12% p.a. It is therefore held that if interest @12% p.a. is awarded on the amount to be refunded to the complainant i.e. on Rs.24,97,432/-, that will meet the ends of justice.
In the instant case, delay if any, in offering possession of the apartment(s) was on the part of the opposite party and it cannot take benefit out of that by saying that the consumer complaint is barred by limitation. In National Insurance Co. Ltd. vs. Hindustan Safety Glass Works Ltd. and allied cases, in Civil Appeal No. 3883/2007, decided on 07.04.2017, the Hon’ble Supreme Court of India held that the provisions concerning the limitation issue in the Act, 1986 could not be strictly construed to the disadvantage of a consumer in cases, where the supplier of goods or services itself was instrumental in causing delay.
“….It was therefore urged that the applicability of the Act having been confined to moveable goods only a complaint filed for any defect in relation to immovable goods such as a house or building or allotment of site could not have been entertained by the Commission. The submission does not appear to be well founded. The respondents were aggrieved either by delay in delivery of possession of house or use of sub-standard material etc. and therefore they claimed deficiency in service rendered by the appellants. Whether they were justified in their complaint and if such act or omission could be held to be denial of service in the Act shall be examined presently but the jurisdiction of the Commission could not be ousted because even though it was service it related to immovable property”.
xxxx
6. What remains to be examined is if housing construction or building activity carried on by a private or statutory body was service within the meaning of clause (o) of Section 2 of the Act as it stood prior to inclusion of the expression 'housing construction' in the definition of "service" by Ordinance No. 24 of 1993. As pointed out earlier the entire purpose of widening the definition is to include in it not only day to day buying and selling activity undertaken by a common man but even such activities which are otherwise not commercial in nature yet they partake of a character in which some benefit is conferred on the consumer. Construction of a house or flat is for the benefit of person for whom it is constructed. He may do it himself or hire services of a builder or contractor. The latter being for consideration is service as defined in the Act. Similarly when a statutory authority develops land or allots a site or constructs a house for the benefit of common man it is as much service as by a builder or contractor. The one is contractual service and other statutory service. If the service is defective or it is not what was represented then it would be unfair trade practice as defined in the Act. Any defect in construction activity would be denial of comfort and service to a consumer. When possession of property is not delivered within stipulated period the delay so caused is denial of service. Such disputes or claims are not in respect of immoveable property as argued but deficiency in rendering of service of particular standard, quality or grade. Such deficiencies or omissions are defined in sub-clause (ii) of clause (r) of Section 2 as unfair trade practice. If a builder of a house uses substandard material in construction of a building or makes false or misleading representation about the condition of the house then it is denial of the facility or benefit of which a consumer is entitled to claim value under the Act. When the contractor or builder undertakes to erect a house or flat then it is inherent in it that he shall perform his obligation as agreed to. A flat with a leaking roof, or cracking wall or substandard floor is denial of service. Similarly when a statutory authority undertakes to develop land and frame housing scheme, it, while performing statutory duty renders service to the society in general and individual in particular. The entire approach of the learned counsel for the development authority in emphasising that power exercised under a statute could not be stretched to mean service proceeded on misconception. It is incorrect understanding of the statutory functions under a social legislation. A development authority while developing the land or framing a scheme for housing discharges statutory duty the purpose and objective of which is service to the citizens. As pointed out earlier the entire purpose of widening the definitions is to include in it not only day to day buying of goods by a common man but even such activities which are otherwise not commercial but professional or service-oriented in nature. The provisions in the Acts, namely, Lucknow Development Act, Delhi Development Act or Bangalore Development Act clearly provide for preparing plan, development of land, and framing of scheme etc. Therefore if such authority undertakes to construct building or allot houses or building sites to citizens of the State either as amenity or as benefit then it amounts to rendering of service and will be covered in the expression 'service made available to potential users'. A person who applies for allotment of a building site or for a flat constructed by the development authority or enters into an agreement with a builder or a contractor is a potential user and nature of transaction is covered in the expression 'service of any description'. It further indicates that the definition is not exhaustive. The inclusive clause succeeded in widening its scope but not exhausting the services which could be covered in earlier part. So any service except when it is free of charge or under a constraint of personal service is included in it. Since housing activity is a service it was covered in the clause as it stood before 1993”.
The principle of law laid down in Lucknow Development Authority`s case (supra) is fully applicable to the present case. As such, plea taken by the opposite party in this regard, stands rejected.
Pronounced.
22.06.2020
Sd/-
[JUSTICE RAJ SHEKHAR ATTRI]
PRESIDENT
Sd/-
[PADMA PANDEY]
MEMBER
Sd/-
[RAJESH K. ARYA]
MEMBER
Rg
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