DISTRICT CONSUMER DISPUTES REDRESSAL FORUM-I,

U.T. CHANDIGARH

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Mrs.Puneet Singh wife of Sh.Jaspal Singh resident of House No.1080, Sector 43-B, Chandigarh.

…..Complainant

                                      V E R S U S

1.       Emmar MGF Land Pvt. Ltd., SCO No.120-122, Sector 17-C, Chandigarh, through its Managing Director.

2.       Emmar MGF Land Pvt. Ltd., ECE House, # 28 Kasturba Gandhi Marg, New Delhi through its Director.

……Opposite Parties

QUORUM:   P.L.AHUJA                                                  PRESIDENT

                   RAJINDER SINGH GILL                                MEMBER

                   DR.(MRS) MADANJIT KAUR SAHOTA         MEMBER

For Complainant(s): Sh.S.C.Sharma, Advocate.

For OP(s):                  Sh.Rohit Kumar, Proxy Counsel for Sh.Rohit                                     Chandel, Advocate. 

PER P.L.AHUJA, PRESIDENT

1.                Mrs.Puneet Singh, complainant has filed this consumer complaint under Section 12 of the Consumer Protection Act, 1986, against Emaar MGF Land Pvt. Ltd. & Anr. - Opposite Parties (hereinafter called the OPs). The allegations of the complainant in brief are as under :-

                   The complainant was allotted a plot No.233, measuring 500 Sq. yards in Augusta Park, Sector 109, Mohali Hills, SAS Nagar, Punjab. Prior to that the complainant got the registration/booking of the said plot by way of filing an advance registration form No.MH-1664 and at that time she enclosed two cheques for a sum of Rs.18,50,000/-. Thereafter, the provisional allotment of the plot was issued through letter dated 9.5.2007. According to the complainant, she has deposited an amount of Rs.65,92,797/- on account of due installments till 16.3.2009 as detailed in para No.3 of the complaint. After allotment of the plot OPs executed a Plot Buyers Agreement on 4.7.2007 with the complainant, in accordance with which, they agreed to deliver the possession of the plot to the allottee within a period of 2 years from the date of execution of the agreement but not later than 3 years. It has been contended that though the OPs have received the full and final cost of the plot but there is no development like roads, sewerage, electricity poles and other necessary amenities and the OPs will take another 2-3 years for the development of this project. The complainant has alleged deficiency in service on the part of OPs. The complainant has made a prayer for a direction to the OPs to pay interest @ 15% p.a. over the total deposited amount of Rs.65,92,797/-, apart from making payment of compensation of Rs.1 lac and litigation expenses to the tune of Rs.10,000/-.

2.                OPs in their joint written statement have admitted that they issued a provisional allotment letter to the customer for the said unit on 9.5.2007. The amount of Rs.18.50 lacs included Rs.17.25 lacs towards the booking amount for the unit and Rs.1.25 lacs towards the service charges. It has been stated that the complainant has deposited Rs.64.63 lacs against the cost of the unit as per statement of accounts – Annexure R-1. It has been admitted that due date of offering possession was 4.7.2010 as per terms and conditions of the buyers agreement.  It has been averred that in case of delay in possession, the company stands committed to bear only the penalty for such delay, as per the terms and conditions mentioned in the agreement, which shall be settled at the time of registration.  It has been averred that there has been considerable progress and development in the said project. All basic amenities have been laid for the unit with regard to sewerage, water and electricity connection.  It has been stated that the present complaint is beyond the period of limitation and the complainant cannot be allowed to wriggle out of the covenants and terms & conditions of the Plot Buyers Agreement.

3.                The parties led evidence in support of their contentions.

4.                After going through the evidence, written arguments of OPs No.1 and 2 and hearing the arguments of the learned Counsel for the complainant, we find that the complaint merits acceptance.

5.                It is the admitted case of the OPs that the complainant was allotted plot No.233, measuring 500 Sq. yards in Augusta Park, Sector 109, Mohali Hills, SAS Nagar, Punjab and she made payment of Rs.18,50,000/- towards the booking amount and service charges through two separate cheques.  It is also admitted by the OPs that the complainant has deposited an amount of Rs.64,63,090/- against the cost of the unit as per Statement of Accounts – Annexure R-1. The Clause 8 of Plot Buyers Agreement – Annexure C-1 shows that subject to force majeure conditions and reasons beyond the control of the company, the company shall endeavor to deliver possession of the plot to the allottee within a period of 2 years from the date of execution of the agreement but not later than 3 years.  In the instant case, the Plot Buyers Agreement was executed on 4.7.2007 and the OPs were required to hand over the possession of the plot to the complainant by 4.7.2010 at the latest. The copy of email message dated 20.1.2012 – Annexure C-15 sent by the OPs to the complainant shows that they expected to offer the possession of the property within next 3 to 4 months meaning thereby the development work in the area is not complete. The email message dated 21.2.2012 – Annexure C-16 shows that the complainant was informed that the OPs were expediting the development work in the area where her unit is situated and expected the handing over of the property within next 3 to 4 months time. However, the possession of the property has not been handed over to the complainant so far. The contention of the OPs that in case of delay in possession, it would pay the penalty to be settled at the time of registration cannot be accepted.

6.                It has been contended by the OPs that the value of the goods or services and compensation in this case exceeds Rs.20 lacs, therefore, this Forum has no pecuniary jurisdiction. However, we are not impressed with the said contention. The complainant has not claimed the relief of delivery of the possession nor the refund of the amount of Rs.65,92,797/-.  The complainant has simply claimed for interest on the amount deposited and the compensation. The OPs have not explained anywhere as to how the amount claimed exceeds Rs.20 lacs. Therefore, we are unable to agree that this Forum has no pecuniary jurisdiction to try the complaint.

7.                It has been also contended by the OPs that as per Clause 39 of the Plot Buyers Agreement – Annexure C-1 the dispute arising out of the terms of the said agreement can be settled through arbitration, therefore, this Forum has no jurisdiction.  However, we feel that the said contention is devoid of any merit. The remedy under the Consumer Protection Act, 1986 is additional remedy and even if there is an arbitration agreement, this Forum can grant the compensation for deficiency in service on the part of OPs.

8.                The learned Counsel for the complainant has drawn our attention to one Revision Petition No.1619 of 2012 decided by the Hon’ble National Commission on 6.7.2012 in case titled as Emaar MGF Land Ltd. & Anr. Vs. Mr.Lalit Arora wherein the order of the District Forum in the similar circumstances for allowing interest, compensation and litigation costs was affirmed upto the Hon’ble National Commission. In the instant case also we find that since the possession of the plot in question after carrying out the complete development has not been handed over to the complainant by 4.7.2010 and the amount of Rs.64,63,090/-, as per Statement of Accounts – Annexure R-1, deposited by the complainant has been illegally and improperly retained by the OPs for a sufficiently a long period, she is required to be compensated.

9.                Accordingly, we find merit in the complaint and the same is allowed. The OPs are directed :-

i)                 To make payment of interest @12% p.a. on the deposited amount of Rs.64,63,090/- from the respective dates of deposit till the handing over the possession of the plot after carrying out the complete development work.

ii)                To make payment of Rs.25,000/- as compensation for causing mental and physical harassment to the complainant

iii)                To make payment of Rs.10,000/- as costs of litigation to the complainant.

10.              This order shall be complied with by the OPs within one month from the date of receipt of its certified copy, failing which, OPs shall be liable to refund the above said awarded amount to the complainant along with interest @15% p.a. on the deposited amount from respective dates of deposit till handing over the possession of the plot after carrying out the complete development work, besides costs of litigation.

11.              The certified copies of this order be sent to the parties free of charge. The file be consigned.