
Bhupinder Singh filed a consumer case on 28 Dec 2022 against Manohar Infrastructure & Constructions Pvt. Ltd. in the StateCommission Consumer Court. The case no is CC/62/2022 and the judgment uploaded on 02 Jan 2023.
STATE CONSUMER DISPUTES REDRESSAL COMMISSION,
U.T., CHANDIGARH
Complaint case No. | : | 62 of 2022 |
Date of Institution | : | 25.07.2022 |
Date of Decision | : | 28.12.2022 |
Bhupinder Singh S/o Late Sh. Jagjit Singh, resident of House No. 321, The palms, Manohar Infrastructure and Constructions, New Chandigarh-140901, District SAS Nagar, Mohali, Punjab.
Versus
mdofficemultitech2013@gmail.com
nbs@manoharrealty.com
…..Opposite Parties
BEFORE: JUSTICE RAJ SHEKHAR ATTRI, PRESIDENT
MR. RAJESH K. ARYA, MEMBER
Present:- Sh.Sandeep Bhardwaj, Advocate for the complainant.
Sh.Nishant Jindal, Advocate proxy for Sh.Anil Mehta, Advocate for the opposite parties.
JUSTICE RAJ SHEKHAR ATTRI, PRESIDENT
The complainant has filed this complaint seeking directions to the opposite parties to deliver actual physical possession of the plot bearing no.1148, located in their project named ‘The Palm’, Village Mullanpur District SAS Nagar, Mohali, Punjab, against which he has paid substantial amount of Rs.47,58,563/- out of Rs.49,66,500/- for the period starting from 2011 to 2017; alongwith compensation for the period of delay etc. It is the case of the complainant that at the time of booking of the said plot, its size was 250 square yards and based on this size, its basic sale price was fixed at Rs.45 lacs i.e. @18000/- per square yard, yet, later on, it was unilaterally decreased to 225.75 square yards but its basic sale price was not decreased by the opposite parties. It has been further stated that though as per clause 4.1 of the agreement dated 15.12.2017, Annexure C-3, the opposite parties committed to deliver possession of the plot in question, latest by 14.06.2020 yet, they offered possession of the same, vide letter dated 22.11.2019, Annexure C-14, which was nothing but only paper possession because basic amenities were not provided at the project site. It has been further stated that even various terms and conditions contained in the said agreement qua non-construction charges to be obtained by the opposite parties instead which were payable to the Government Authorities; obtaining of occupation and completion certificates by the complainant instead of, by the opposite parties; demand of basic sale price in contravention of terms and conditions of the application form which was got filled at the time of booking of the plot in question etc. were illegal and arbitrary. It has been averred that in the absence of complete possession, the complainant is unable to built house, which has resulted into hardships. It has been stated that the complainant is also facing a same problem with regard to another plot bearing no.321 purchased in the project of the opposite parties, consumer complaint against which is pending adjudication before the District Commission, Mohali. Hence this complaint has been filed seeking following reliefs:-
“…… (i). To handover the possession of plot no.1148 with all basic amenities after obtaining the completion and occupation certificate along with proper demarcation and levelling without demanding any charges/consideration as the entire payment as per agreement has been paid by the complainant.
(ii). To provide all amenities such as road, street light, parks along with all amenities as advertised in the brochure Annexure/Exhibit C-19.
(iii). To refund an amount of Rs.2,43,563/- received in excess along with interest @12% p.a. from the date of initial deposit till realisation.
(iv). To pay interest @12% on the deposited amount i.e. 47,58,563/- to the complainant from the agreed date of possession i.e. 14.12.2019 till handing over the physical possession after obtaining the completion certificate and occupation certificate by the opposite parties from GMADA/competent authority.
(v). To declare the terms and conditions which are against the interest of the complainant being null and void being unfair as proven from the documentary evidence of the present case.
(vi). To pay compensation of Rs. 2 lacs, on account of mental agony, physical harassment, financial loss, caused to the complainants, and deficiency in service, negligence and adoption of unfair trade practice on the part of OPS.
(vii). To grant additional relief if any, as per the provision of the Consumer Protection Act 2019.
(viii). To pay cost of litigation of Rs. 1 lac to the complainant.…..”
“………47. (1) Subject to the other provisions of this Act, the State Commission shall have jurisdiction—
A bare perusal of Section 47 (1) (a) (ii) provides that the State Commission shall also have the jurisdiction to entertain and decide the complaints against unfair contracts, where the value of goods or services paid as consideration does not exceed ten crore rupees. Definition of “unfair contract” has been provided under Clause 2 (46) of CPA 2019 as under:-
(46) "unfair contract" means a contract between a manufacturer or trader or service provider on one hand, and a consumer on the other, having such terms which cause significant change in the rights of such consumer, including the following, namely:—
(i) requiring manifestly excessive security deposits to be given by a consumer for the performance of contractual obligations; or
(ii) imposing any penalty on the consumer, for the breach of contract thereof which is wholly disproportionate to the loss occurred due to such breach to the other party to the contract; or
(iii) refusing to accept early repayment of debts on payment of applicable penalty; or
(iv) entitling a party to the contract to terminate such contract unilaterally, without reasonable cause; or
(v) permitting or has the effect of permitting one party to assign the contract to the detriment of the other party who is a consumer, without his consent; or
(vi) imposing on the consumer any unreasonable charge, obligation or condition which puts such consumer to disadvantage….”
In the present case, admittedly, the complainant has challenged various terms andconditions mentioned in the agreement dated 15.12.2017, Annexure C-3. We have also perused the said agreement and found that the date of application therein has been mentioned as 15.12.2017, whereas, on the other hand, the date of submission of Application Annexure C-1 was 28.02.2011. Similarly, in this application, the size of plot, for which the complainant had applied for, is 250 square yards @18000/- per square yard, yet, in clause 2.1 of the agreement, it has been mentioned as 225.75 square yards. Furthermore, even the price of the plot inquestion also stood increased by the opposite parties, in respect of the plot in question i.e. from 18000/- to 22000/- per square yard. It is further found in clause 2.12 that though in case of delay in making payment penal interest ranging from 12% p.a. to 18% p.a. is payable by the allottee, yet, no such clause on equitable grounds, for payment of interest on the deposited amount, in case of delay in delivery of possession is found mentioned in this agreement. Similarly, there are number of other terms and conditions which clearly goes to show that the same areone sided, harsh, oppressive and unconscionable to the complainant. In our considered opinion, the act of thrusting the said one sided, harsh, oppressive and unconscionable conditions upon the complainant, amounts to imposing upon the complainant unreasonable charge, obligation and condition which had put him to disadvantage. The case of the complainant thus falls under Section 2 (46) (vi) of CPA 2019.Thisact and conduct of opposite parties amounts to effect of permitting them to assign the contract to the detriment of the complainant, without his consent and also imposing upon him unreasonable charge, obligation and condition to put him to disadvantage. Thus, this act and conduct of opposite parties also covered the provisions of Section 2 (46) (v) and (vi) of CPA 2019, which gives reason to this Commission to say that it was a case of ‘unfair contract’. In this view of the matter, objection taken by the opposite parties regarding pecuniary jurisdiction of this Commission stands rejected and it is held that this complaint is maintainable under Section (2) 46 and 47of CPA 2019.
In this view of the matter, the application bearing no.620 of 2022 moved by the opposite parties for dismissing this complaint on the ground of pecuniary jurisdiction, stands dismissed with no order as to cost, having been rendered infructuous.
“ In the case of the purchase of the houses which a builder undertakes to construct for the buyer, the purchase can be said to be for a commercial purpose where it is shown, by producing evidence, that the buyer is engaged in the business of a buying and selling of houses and or plots as a trading activity, with a view to make profits by sale of such houses or plots. A person cannot be said to have purchased a house for a commercial purpose only by proving that he owns or had purchased more than one houses or plots. In a given case, separate houses may be purchased by a person for the individual use of his family members. A person owning a house in a city A may also purchase a house in city B for the purpose of staying in that house during short visits to that city. A person may buy two or three houses if the requirement of his family cannot be met in one house. Therefore, it would not be correct to say that in every case where a person owns more than one house, the acquisition of the house is for a commercial purpose. In fact, this was also the view taken by this Commission in Rajesh Malhotra &Ors. Vs. Acron Developers Pvt. Ltd. &Ors. First Appeal No. 1287 of 2014 decided on 05.11.2015.”
The principle of law laid down in the aforesaid cases is fully applicable to the present case. The complainant thus falls within the definition of a ‘consumer’, as defined under the Act. Such an objection taken by the opposite parties therefore, being devoid of merit is rejected.
14. It is the responsibility of the promoter-
(i) in the case of apartments, to obtain from the authority required to do so under any law completion and occupation certificates for the building and if a promoter, within a reasonable time, after the construction of the building, does not apply for an occupation certificate from the aforesaid authority, the allottee of an apartment may apply for an occupation certificate from the said authority; and
(ii) in the case of a colony, to obtain completion certificate from the competent authority to the effect that the development works have been completed in all aspects as per terms and conditions of the licence granted to him under section 5. (2) The authority referred to in sub-section (1) shall, after satisfying itself about the agreement of sale between the promoter and the allottee, and the compliance of the building regulations and all other formalities, issue an occupation certificate."
It is significant to mention here that the candid admission of the opposite parties in para no.10 to 13 of ‘reply on merits’, to the effect that they have applied for partial completion certificate for which the Competent Authorities are taking considerable time for issuance of the same is sufficient to hold that the complainant was not obliged to take possession of the plot so offered vide letter dated 22.11.2019, Annexure C-14, as it was offered in the absence of completion certificate. However, till the date of arguments also, copy of completion certificate had not been placed on record by the opposite parties, meaning thereby that the same was not obtained by them till that date. Thus, mere sending of offer of possession letter dated 22.11.2019, Annexure C-14, in the absence of completion certificate, in no way can be termed as genuine offer of possession. Our this view is supported by the observations made by the Hon’ble National Commission in Shri Rajeev Nohwar & Anr. Versus M/s Sahajanand HI TECH Construction Pvt. Ltd., Consumer Case No. 346 of 2014, decided on 06 May 2016, wherein, it was held as under:-
“………The date by which the flat was to be offered for the purpose of fitouts cannot be said to be the date for handing over the possession to the purchaser since neither the builder is under an obligation to complete the construction in all respect by that date nor can the purchaser occupy the flat at the stage of offer of fitouts. Section (2) (i) of MOFA mandates the promotor not to allow any persons to enter into possession until a completion certificate is duly given by the authorities. It also mandates the purchaser not to take possession of a flat until such completion certificate has been duly given. Therefore, the date on which the flat is made available for fitouts cannot be said to be the date for delivery of possession of the flat. Such a date, by law, cannot be a date earlier than the date on which the completion certificate/occupancy certificate is issued by the concerned authority…..”
5. During the course of hearing, it was submitted by the learned counsel for the appellant that the completion certificate in respect of the project was obtained by the appellant on 15.03.2016. A copy of the communication dated 15.03.2016 from Municipal Council, Kharar has been placed on record. It is therefore, evident that the completion certificate having been received only on 15.03.2016, the appellant could not have offered legal possession of the apartment to the complainant at any time before that date. As noted earlier, the amount of Rs.1,81,375/- was demanded on 20.04.2015 and the amount of Rs.2,12,489/- was demanded on 06.02.2016. The complainant was requested to pay the aforesaid amount so that the appellant could offer the possession of the flat. The said offer of possession was meaningless being unlawful as the requisite completion certificate had not been obtained by that date......."
In view of peculiar facts and circumstances of this case, we are of the considered view that the complainant was not obliged to take over possession of the plot in question, offered without completion certificate.
“……With regard to the objection of the Developer that the Complainants are not entitled for the relief other than prayed for in the Complaint, the Hon’ble Supreme Court as well as this Commission in catena of judgments has laid down the principal that in the absence of a specific prayer, it is still open to the Courts to grant a relief which is appropriate, justified and warranted in the facts and circumstances of the case…...”
Failure of the opposite parties to provide complete/effective possession of the plot within the stipulated period amounts to deficiency in service. It is also matter of common parlance that for purchasing the plot(s)/unit(s), the purchasers take loans from their family members, relatives and friends or financial institutions. In some cases, the purchasers live on rent in the absence of timely delivery of possession. On account of delay in actual delivery of possession within the stipulated period, the complainant suffered mental agony, hardships and financial loss. In the case titled as Lucknow Development Authority v. M K Gupta (1994) 1 SCC 243, the Hon’ble Supreme Court discussed about the extent of the jurisdiction of the Consumer Fora to award just and reasonable compensation for the harassment and agony suffered by a consumer. In Nagesh Maruti Utekar Vs. Sunstone Developers Joint Venture, Consumer Case No. 12 of 2017, decided on 04 May 2022, the Hon’ble National Commission awarded interest @9% p.a. from the committed date of delivery till possession is delivered. Relevant part of the said order is reproduced hereunder:-
“……Consequently, the Opposite Party Developer is directed to pay interest @9% w.e.f. 31.03.2014, i.e., the expected date of delivery of the possession, on the amount deposited by the respective Complainant till 02.09.2017, i.e., the date on which the possession of the Flat was offered by the Opposite Party Developer, within two months from today. The Opposite Party Developer shall also pay cost of ₹25,000/- to the Complainants in each case. Since we have awarded delay compensation till the date of offer of possession instead of actual physical possession of the Flat, the Opposite Party Developer shall not be entitled for any delay interest from the date of offer of possession till the date of payment made by the Complainant for taking physical possession of the Flat.…..”
In Shreya Kumar & 11 Ors. Vs. M/s. Ansal Housing & Construction Ltd. & 3 Ors., Consumer Case No. 1021 of 2017, decided on 05 May 2022, the Larger Bench of the Hon’ble National Commission has awarded interest @9% p.a. from the committed date of delivery till possession is delivered. In the present case, the complainant has purchased the unit in question, as far as back in 2011 and remained empty handed for more than 10 years and has to approach this Commission for redressal of his grievance. The opposite parties have played fast and loose with the complainant and have caused harassment and mental agony to him, which is unacceptable and this practice needs to be deprecated. In our considered opinion, if we grant interest @9% p.a. to the complainant on the entire amount deposited by him, from the due date of possession i.e. 14.12.2019 onwards till delivery of possession thereof, that will meet the ends of justice.
Pronounced
28.12.2022
Sd/-
[JUSTICE RAJ SHEKHAR ATTRI]
PRESIDENT
Sd/-
(RAJESH K. ARYA)
MEMBER
Rg.
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