Sunday 4 March 2018

FRWA-NCDRC JUDGEMENT (PARA 19)




 PRESIDENT

NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION
NEW DELHI

CONSUMER CASE NO. 427,430-440 of 2014
Versus
M/s Unitech LTD (Opposite party –OP)
                                     
Para 19. For the reasons stated hereinabove, I am of the considered view that the opposite party should handover possession of the apartments booked by the complainants on or before the last date stipulated in the letter of the opposite party dated 27-05-2015. In the cases of those complainants who are the initial allottees of the apartments or who acquired the same within one year of the initial allotment, the opposite party should also pay compensation to them in the form of simple interest at the rate of 12% per annum with effect from the date of possession stipulated in the agreement till the date on which the possession is actually handed over to them.  The persons who purchased the flats within one year of the initial allotment, ought to be treated at par with the initial allottees, because atleast two more years being still available to the opposite party at the time of purchase by them, they could not have anticipated that the builder will not be able to honour its commitment, as regards the stipulated date of delivery of possession.  No separate compensation for the mental agony, harassment and suffering needs to be paid by the opposite party to the complainants. However, in the case of those complainants who acquire the flats by way of resale more than one year after the initial allotment, the opposite party should pay compensation in the form of simple interest at the rate of 12% per annum with effect from three years from the date of the repurchase till the date on which the possession is delivered to them. As in other cases no compensation would be payable for the first three years from the date of initial allotment of the flat. For the interregnum i.e. between three years from the date of initial allotment and three years from the date of repurchase by them, compensation shall be paid by the opposite party at the rate of Rs.5/- per sq. ft. of the super area in terms of clause 4.c of the buyers agreement.  I am awarding lesser compensation to those purchased the flat from the initial allottee more than one year after the date of initial allotment, considering the decision of the Hon’ble Supreme Court in Haryana Urban Development Authority Vs. Raje Ram, AIR 2009 SC 2030. In that case,  HUDA allotted a plot of land to one Madan Lal who deposited the 25% of the cost of the plot. Later, HUDA notified revision of the price and gave an option to the allottees to either accept the revision or receive back the initial deposit with interest.  Onn the request of the allottee and the respondent the allotment was transferred in favour of the respondent. Since HUDA failed to deliver possession of the plot within the stipulated time, the respondent approached the concerned District Forum expressing grievance against non-delivery of the possession within the stipulate time. HUDA then offered possession of the plot to him and the District Forum disposed of the complaint with a direction to HUDA to pay interest to the respondent at the rate of 18% per annum from the date of deposit till the date of offer of possession. Having been unsuccessful before the State Commission and this Commission, HUDA approached the Hon’ble Supreme Court by way of special leave. It was held by the Hon’ble Supreme Court that the respondent knew at the time the plot was realloted to him that there was delay and in spite of that he took the re-allotment. It was held that the case of the respondent could not be compared to the case of the original allottees. The respondents were aware at the time of purchase that the time for performance was not stipulated as the essence of the contract and the original allottee had accepted the delay. It was, therefore, held that the respondents were not entitled to interest on the amount deposited by them.  The persons who purchased flats more than one year after the date of initial allotment, could foresee that the builder will not be able to deliver the possession of the flat by the stipulated date.  This is not their case that when they acquired the allotment by way of repurchase, they had found that the builder had already completed the development which it was expected to complete by that time or that the builder had assured them that it would give possession to them by the original date stipulated in the agreement. Such persons therefore cannot be treated at par with the original allottees or those who acquired the allotment within one year of the initial allotment.

Warm Regards

For FEDERATION OF RESIDENTS WELFARE ASSOCIATION


KULDEEP KUMAR KOHLI
PRESIDENT


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