NCDRC

NCDRC

CC/292/2020

ITTY GUPTA & ANR. - Complainant(s)

Versus

EMAAR MGF LAND LIMITED - Opp.Party(s)

M/S. PSP LEGAL

06 Feb 2023

ORDER

NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION
NEW DELHI
 
CONSUMER CASE NO. 292 OF 2020
 
1. ITTY GUPTA & ANR.
...........Complainant(s)
Versus 
1. EMAAR MGF LAND LIMITED
306-308, SQUARE ONE, C-2, DISTRICT CENTRE, SAKET,NEW DELHI-110017
...........Opp.Party(s)

BEFORE: 
 HON'BLE MR. BINOY KUMAR,PRESIDING MEMBER
 HON'BLE MR. JUSTICE SUDIP AHLUWALIA,MEMBER

For the Complainant :
Mr. Aditya Parolia, Advocate
Ms. Ishita Singh, Advocate.
For the Opp.Party :
Mr. Sanchar Anand, Advocate
Ms. Sumbul Ausaf, Advocate
Mr. Aman Kumar Thakur, Advocate.

Dated : 06 Feb 2023
ORDER

JUSTICE SUDIP AHLUWALIA, MEMBER

The present Consumer Complaint has been filed by Complainants namely Itty Gupta and Mudit Gupta (hereinafter together referred as ‘Complainants’) under Section 21 r/w section 12(a) of the Consumer Protection Act 1986, against M/s Emaar MGF Land Ltd. seeking physical possession, compensation, interest and refund of wrongfully charged taxes & car parking charges by the Opposite Party from the Complainants along with other ancillary reliefs.

  1. The brief facts leading upto the present Complaint as  stated by the Complainants in their complaint are that the Complainants made a joint booking in a residential project being developed by the Opposite Party namely ‘Palm Hills’ situated at Sector-77,Village Shikohpur, Tehsil & District Gurgaon, Haryana (hereinafter referred as ‘Project’) by paying a booking amount of Rs.5,00,000/-. It is further averred that the Opposite entered into a Builder Buyer Agreement dated 17.11.2010 with the Complainants and the Complainants were thereafter allotted unit bearing No.-PH3-11-0702 measuring 1450 sq. ft. situated at the 7th Floor for a total consideration of Rs.55,68,643.5/-.
  2. The Complainants claim that the Opposite Party promised to deliver the possession of the unit with all promises and facilities within 36 months from the date of start of construction inclusive of 3 months grace period. As per clause 11(a) of the Builder Buyer Agreement the due date is 33 months plus 3 months grace period from the date of start of construction. It is an undisputed fact that the date of start of construction was 25.02.2011, hence, the due date for handing over turns out to be 25.02.2014. 
  3. The Complainants have further averred in the Complaint that the Opposite Party inordinately delayed completion of the project and offered possession of the unit after a delay of over 5 years vide letter dated 26.12.2019 wherein the Opposite Party have demanded an additional sum of Rs.3,42,340/- despite payment of Rs. 55,25,721/- by the Complainants to the Opposite Party towards the unit. The price of the unit has also allegedly escalated from Rs.55,68,643/- to Rs.59,41,955/- due to delay. It is further submitted that the Opposite Party also charged Rs.2,00,000 towards car parking charges in addition to basic sale price.   
  4. The Complainant further submits that the opposite Party are guilty of unfair trade practices and deficiency in service because they failed to complete the construction of the project, failed to handover the possession, caused delay in construction, non-affirmative time schedule for completion & possession and collected illegal charges from the Complainant resulting in grave irreparable loss to Complainant. Hence, aggrieved by the delay and the aforesaid acts of the Opposite Party, the complainants have filed the present complaint before this Commission praying to-

  1.  “Direct the Opposite Party to handover possession of the unit to the Complainant, complete in all respects and in conformity with the Buyer’s Agreement and for the consideration mentioned therein, with all additional facilities and as per quality standards promised and execute all necessary and required documents in respect of the said unit in favour of the Complainant immediately upon this Complaint being filed before this Hon’ble Commission or as this Hon’ble Commission deems fit and appropriate;
  2. Direct the Opposite Party to pay interest @ 14% per annum on the amount deposited by the Complainant with the Opposite Party, with effect from the date of delivery promised in the Agreement, till the date of actual possession as per clause (a) above is handed over by the Opposite Party along with all necessary documents and common areas and facilities as promised during the initial booking made by the Complainant;
  3. Direct the Opposite Party to provide adequate car parking space to the Complainant and to refund the amount charged towards car parking space along with service tax and interest @ 18% from the date when the payment was made;
  4. Direct the Opposite Party to pay compensation of Rs.5,00,000/- (Rupees Five Lakhs Only) to the Complainant for mental agony, harassment, discomfort and undue hardships caused to the Complainant as a result of the above acts and omissions on the part of the Opposite Party;
  5. Direct the Opposite Party to pay a sum of Rs.1,00,000/- (Rupees One Lakh Only) to the Complainant as a whole, towards litigation costs;
  6. Direct the Opposite Party to refund wrongfully charged taxes and other charges along with the interest on that amount at the rate of 18% p.a. from the date of receipt of such wrongfully levied charges and taxes;

That any other and further relief in favour of the Complainant as the Hon’ble Commission may deem fit and proper in the fact and circumstances of the case.”

  1. The Opposite Party has filed its written version wherein all the allegations have been denied and the following objections have been raised:

    a.The complainants are not consumers as the property was purchased for commercial purposes, the transaction between the parties is not relating to ‘goods’, there is no defect or deficiency in services, the present complaint involves civil rights of parties which can only be adjudicated before a civil court and the complaint is time barred. The opposite Party further submitted that the act of delay in offering possession has been condoned by the Complainant, and this Commission lacks jurisdiction to hear the present complaint. b.The Complainants defaulted in making payments in terms of the Agreement, despite which the Opposite Party has completed construction and obtained the Occupation Certificate and the possession has been offered vide letter dated 26.12.2019. At the time of offer of possession payment payable form Complainant was Rs.3,42,340/- after adjusting delayed compensation of Rs.7,61,905/-. The Complainant failed to pay the said dues.  c.The parties entered into the Buyer’s Agreement which was in the nature of civil contract and the parties were bound by the terms and conditions of the said Buyer’s Agreement. No relief other than what has been provided in the Agreement can be granted to the Complainant. The Complainant has agreed to delay penalty @Rs.7.5/- per sq. ft. per month.d. The Opposite Party was to provide possession to the Complainant on 24.02.2014 as the date of commencement of construction was 25.02.2011, however, the present complaint has been preferred by the Complainant on 27.02.2020 i.e. more than 6 years after the alleged date of possession, thus the act of Opposite Party has been condoned by the Complainant.     e. As per clause 11(a), Opposite Party has only PROPOSED to handover possession of the unit in question within 33 months plus 3 months grace period.  f.  The Complainant has not filed any evidence of actual damage suffered by them.g. The delay has been caused due to work slowing down due to issues with contractor. It was due to contractor’s lackadaisical performance that the construction of the project was slowed down and got delayed. Hence, due to the reasons beyond the control of the Opposite Party, the progress in construction of project was affected.h. As per the revised National Building Code, 2016, all the high rise buildings were to have two stair cases, hence, subsequently the Opposite Party had to construct the second stair case. Thereafter the Opposite Party obtained Occupation Certificate and offered possession. The construction was complete in all respects to handover the physical possession in the year 2017 end itself but due to change in government policy, the Opposite Party could not offer Possession.      

    7.      Hence, the Opposite Party has prayed that the present complaint may be dismissed with costs.

    8.      Rejoinder has been filed behalf of the Complainants. Complainants have at the outset have denied all the contents of Reply.  Complainants have averred that the price of the unit escalated from Rs.55,68,643/- to Rs.59,41,955 due to delay caused by Opposite Party and the Opposite Party has failed to draw nexus between force majeure factors and their role in delaying the possession.

    9.      Three interim Applications are also pending along with the present complaint. The complainant filed IA no. 2833/2020 seeking exemption from filing originals/certified copies of the Annexures and IA no.7960/2021 seeking permission of this Hon’ble Commission to file Rejoinder to the Reply of Opposite Party and Evidence by way of Affidavit on behalf of the Complainants. And IA no. 8143/2022 has been filed by the Opposite Party seeking condonation of delay of 43 days in filing the affidavit of admission/denial and Evidence by way of Affidavit.

    10.    Affidavit in Evidence has been filed by Mrs. Itty Gupta on behalf of the complainants. Affidavit in Evidence has been filed by Mr. Arvind Kumar Gaur on behalf of the Opposite Party.

    11.    Written synopsis has been filed by the Complainant.

    12.    Heard the Ld. Counsel for the parties. Perused the material available on record.

    13.    It is to be noted first of all that the possession of the dwelling unit was offered to the Complainants on 26.12.2019.  So it can be said that the Complainant’s first prayer seeking handing over of possession of the Unit by the Opposite Party to is much or less redundant although admittedly there are certain riders attached to the exercise.  Claim of the Complainants in this regard is that undue payments are being charged before delivering of possession to them.  On perusal of the material on record especially Clause 1.3 (c ) (material) of the Buyers Agreement dated 17.10.2010 between the parties, it is seen that the Agreement on the question of parking space being provided alongwith the dwelling unit was as under-

    “1.3 (c )     The Allottee(s) agrees and understands that the reserved car parking spaces or any un-allotted car parking spaces in the Project shall form part of Common Areas and facilities of the said Unit for the purpose of the declaration to be filed by the Company under Haryana Apartment Ownership Act, 1983 (“Act”) as amended from time to time. The Allottee (s) agrees and confirms that the reserved car parking space allotted to him/her/them/it shall automatically be cancelled in the event of cancellation, termination, surrender, relinquishment, resumption, re-possession etc. of the said Unit under any of the provisions of this Agreement or otherwise.”

    14.    It is clear from the aforesaid Clause pertaining to the parking space, that any un-allotted car parking spaces in the Project were to form a part of the Common areas and facilities for the Unit in question.  There was no stipulation regarding any consideration price for such un-allotted parking space which was to be treated as a part of the common Areas.  It is nobody’s case that any reserved car parking space was either sought by the Complainants, or was granted to them by the Opposite Party. Consequently, inclusion of the amount of Rs. 2.00 Lakhs of the Car Parking Facility charges by the Opposite Party at a later stage is in contradiction to the Agreement between the Parties and is therefore not justified.

    15.    Similarly, the demand for holding charges made on behalf of the Opposite Party in the event of the Complainant’s failure to take possession of the flats/ dwelling Unit within the time given to them after the offer of possession is also untenable since for the same time, the Opposite Party is also demanding two years of maintenance charges in advance before delivering possession.  If the said maintenance charges are to be applicable from the date of delivery of possession, then imposition of holding charges would not be justified.  However, if the same are to commence from the date of taking over actual possession by the Complainants, then the Complainants would be liable to pay such holding charges in the intervening period between the date of offer and actual possession, but no maintenance charges for the same period would be justified.

    16.    Regarding the liability of the Opposite Party to pay compensation for the delay in offering possession, its contention is that an amount of Rs. 7,61,905/- has already been credited towards the Complainants in terms of Clause 13 (a) of the Buyers Agreement.  The said Clause provides for payment of compensation to the buyers at a rate of Rs. 7.50/- only per sq.ft. per month.  Considering Clause 1.2(b) of the Agreement regarding liability of the purchasers/ allottees, it is seen that the interest for such delayed payment to the Opposite party was actually exorbitant @ 24% p.a.  Such inequitable liability of both sides on the question of delay in either payment by the Complainants or in delivery of possession by the Opposite Party is ex facie unjust, inequitable and unfair in view of the decisions of the Apex Court in “Ireo Grace Realtech Pvt. Ltd.  Vs. Abhishek Khanna & Ors., Civil Appeal No. 5785 of 2019, decided on 11.1.2021” and “Pioneer Urban Land & Infrastructure Ltd.  Vs. Govindan Raghavan, Civil Appeal No. 12238 of 2018” With “Pioneer Urban Land & Infrastructure Ltd.  Vs. Geetu Gidwani Verma & Anr., Civil Appeal No. 1677 of 2019, decided on 2.4.2019”; The relevant portion of the both the judgments  are re-produced as below-

    Ireo Grace Realtech Pvt. Ltd.  Vs. Abhishek Khanna & Ors.

    “19.7 We are of the view that the incorporation of such one-sided and unreasonable clauses in the Apartment Buyer‘s Agreement constitutes an unfair trade practice under Section 2(1)(r) of the Consumer Protection Act. Even under the 1986 Act, the powers of the consumer fora were in no manner constrained to declare a contractual term as unfair or one-sided as an incident of the power to discontinue unfair or restrictive trade practices. An ―unfair contract‖ has been defined under the 2019 Act, and powers have been conferred on the State Consumer Fora and the National Commission to declare contractual terms which are unfair, as null and void. This is a statutory recognition of a power which was implicit under the 1986 Act.

    In view of the above, we hold that the Developer cannot compel the apartment buyers to be bound by the one-sided contractual terms contained in the Apartment Buyer‘s Agreement.”

     

    “Pioneer Urban Land & Infrastructure Ltd.  Vs. Govindan Raghavan

    “6.7. A term of a contract will not be final and binding if it is shown that the flat purchasers had no option but to sign on the dotted line, on a contract framed by the builder. The contractual terms of the Agreement dated 08.05.2012 are ex-facie one-sided, unfair, and unreasonable. The incorporation of such one-sided clauses in an agreement constitutes an unfair trade practice as per Section 2 (r) of the Consumer Protection Act, 1986 since it adopts unfair methods or practices for the purpose of selling the flats by the Builder.”

    17.    So the explanation that the Complainants have been duly compensated for the delivery in possession of the dwelling Unit by way of crediting the amount covered under Clause 13 (a) of the Agreement is not found to be tenable.  On the other hand, the decisions of a coordinate Bench of this Commission in C.C. No. 1037 of 2018- Rajeev Kumar Vohra  Vs. Emaar MGF Land Limited and C.C. No. 458 of 2019- Rajiv Kumar & Anr.  Vs. Emaar MGF Land Limited, which were against the same Opposite Party as in the present case for the purpose of assessing the compensation for delay in delivery of possession are found to be applicable to the facts and circumstances of the present case.  In both those cases, the present Opposite Party in similar situation had been directed to pay delay compensation to the Complainants @ 6% p.a. on their deposits made with the Opposite Party till the date on which possession of the concerned dwelling Units was offered to them.  Such date in the present case happens to be 26.12.2019.

    18.    Consequently, the Complainants are found entitled to delayed compensation @ 6% p.a. on the payments made by them to the Opposite Party, from the date of each individual payment till 26.12.2019.  As already noted earlier, the payment of Rs. 2.00 lakhs as car parking space is also not correct.  Similarly, the payment of holding charges and advance maintenance charges for two years, simultaneously from the date of offer of possession is also not justified. The Opposite Party is entitled to demand either of these two charges from the Complainants at the time of delivering of possession.

    19.    With the above directions, the Complainant’s case is allowed and the Opposite Party is directed to deliver possession of the dwelling Unit within two months from the date of this Order, subject to adjustment of any outstanding dues payable or paid in excess by the Complainants in conformity with the decision of this Commission in this matter, against the delay compensation to which they have been found entitled against the Opposite Party.

    20.    Pending applications, if any, shall also stand disposed off. 

 
......................
BINOY KUMAR
PRESIDING MEMBER
......................J
SUDIP AHLUWALIA
MEMBER

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