State Consumer Disputes Redressal Commission
Navneet Bhutan vs Pal Infrastructure & Developers on 6 September, 2017
Daily Order IN THE DELHI STATE CONSUMER DISPUTES REDRESSAL, COMMISSION : DELHI (Constituted under Section 9 of the Consumer Protection Act, 1986) Date of Arguments :06.09.2017 Date of Decision :12.09.2017 Complaint No.193/2014 IN THE MATTER OF: Mr. Navneet Bhutan, S/o. S\Mr. Dayanand Butan, R/o. H.No.49, Kailash Hills, New Delhi-110065. ......Complainant Versus 1. Pal Infrastructure & Developers Pvt. Ltd., Through its Managing Director, Having its Registered Office at B-45, Shakti Apartments, Sector-9, Rohini, Delhi-110085. .....Opposite Party No.1 2. Garden Villa & Flats Pvt. Ltd. Through its Managing Director, Having its Registered Office at: 7th Floor, Eros Corporate Tower, Nehru Place, New Delhi-110019 ....Opposite Party No.2 HON'BLE SH. O.P.GUPTA, MEMBER(JUDICIAL) HON'BLE SH. ANIL SRIVASTAVA, MEMBER
1. Whether reporters of local newspaper be allowed to see the judgment? Yes/No
2. To be referred to the reporter or not? Yes/No Present: Shri Ayushya Kumar, counsel for complainant.
None for the OP.
PER : SHRI ANIL SRIVASTAVA, MEMBER The gravaman of the complainant in this complaint is that the opposite party has been deficient in rendering service and therefore he is entitled to compensation and interest @24%. The point for consideration is whether the complainant is entitled to the relief as prayed form more so, when the opposite party has been ordered to be proceeded exparte.
Facts of the case, necessary for the disposal of the complaint, are these.
Shri Naveen Butan, resident of New Delhi, for short complainant, led by the advertisements and averments of Pal Infrastructure and Developers Pvt. Ltd and M/s. Anupam Properties, hereinafter referred to as opposite party no.1 and 2 respectively, regarding their upcoming residential building project at Sector-89, Faridabad, Haryana showed his willingness to purchase a villa in the afore mentioned project at Secror-89, Faridabad, on the assurance that the construction of the villa would be complete within 3 years. The villa in question is approximately of the size of 150 sq. yds, with a covered area of 1200 sq. ft. @2000/- per sq ft., with a total cost of Rs.24 lakh. The demand of Rs.3.50 lakh was made from the complainant as provisional registration of expression of interest in the project. The complainant was also asked to sign a registration form which he did. The salient future of the expression of interst are as under:-
Within twelve months, provisional allotment shall be done by the OP no.1.
The amount deposited with the registration form would be adjusted against the provisional allotment amount payable by the complainant;
If allotment is done beyond the stipulated period of twelve months from the date of submission of registration, simple interest @8% p.a. shall be paid to the complainant for the period beyond twelve months.
It was also agreed that with the issue of allotment letter, a binding contract will come into force.
The complainant accordingly paid an amount of Rs.3.5 lakh as registration amount on 21.03.07 drawn on ICICI Bank in favour of the OP-1. Another demand of the same amount was made and payment was accordingly made on 28.04.08. An application form was handed over to the complainant demanding another installment of 8.48 lakhs intimating that the allotment of chosen location would be done only on the registration.
On 21.05.08 the OP-1 issued allotment letter to the complainant, allotting villa-15 in the resident of Group Housing Project known as Pal Garden, Sector-89, Faridabad, Haryana. The said allotment letter contained the payment schedule requiring the complainant to make the payment of the remaining amount at various stages of construction. The complainant made the entire payment in terms of the schedule and that after 21.05.08 no amount was due from the complainant.
The complainant thereafter visited the office of the OP to find out the progress of the project. He was informed that the progress in the project is at the advance stage and he would be allotted villa within the time as agreed to.
However later he found after making inquiry that nothing has been done as announced and assured. On one of the visits of the complainant to the OP-1, representative of the OP-1 Mr. Samil Malik offered the complainant an alternative flat in another project of OP-1 at Sector-70 A Gurgaon, as there was delay in the construction of villa in question at Sector-89, Faridabad. Reasons for the same were never brought home to the complainant. However under compelling circumstances he agreed for the change. But there also nothing happened. It is the apprehension of the complainant that due to rise in price in property markets, the OP showed reluctance in handing over the villa to the complainant at the agreed price.
The complainant aggrieved by unfair trade practice of the OP-1 has filed this complaint before this Commission praying for relief as under:-
(a) allow the present complaint in favour of the complainant and against the OP jointly and severally; and
(b)(i) direct the OP no.1 to resume and complete the construction of villas in the `Pal Garden' Project at Sector-89, Faridabad as promised, and continue to render services in respect of the project and hand over vacant possession of villa no.15 to the complainant allotted to him, vide allotment letter dated 21.05.08; and
(b)(ii) direct the OP no.1 to pay to the complainant, as compensation an amount of Rs.2,81,200/- on account of delay in handing over possession of the villa no.15 w.e.f. December, 2010 till date, or till the date when possession is actually handed over to the complainant by the OP no.1, along with interest @24% p.a. for an amount of Rs.1,04,258/- from the date the amount became due till 31.01.14, and further interest till realization; on
(c)(iii)direct the OP no.1 to pay as compensation and damages to the complainant an amount of Rs.11.84 lakh paid by the complainant to the OP no.1, along with interest @24% p.a. from the date of payment till 31.01.14 for an amount of Rs.17,81,197/- and further interest till realization; and
(c)(ii)allow compensation in favour of the complainant and against the OP no.1 for an amount of Rs.34,75,344/- on account of appreciation in the market value of the property, alongwith further interest @24% till realization; and
(d) allow damages and compensation to the complainant and against the OP no.1 amounting to Rs.5.00 lakhs for mental agony and harassment caused to the complainant due to the acts of the OPs; and / or
(e) pass such or further order/s as this Hon'ble Commission may deem fir and proper.
OPs were noticed and were directed to file the written statement within 30 days. Since, the Ops did not file the reply within the statutory period of 30 days they were ordered to be proceeded exparte on 09.05.16. Complainant thereafter filed their evidence, reiterating what they had submitted in the complaint.
The contention of the complainant regarding unfair trade practice by the OP stands proved as we do not have any material on record controverting the facts. The evidence filed by the complainant further strengthen the arguments and therefore we reach to an inescapable conclusion that the OP were found wanting in the discharge of their duties.
Points for consideration is the relief that can be considered to be granted to the complainant under the circumstances.
We have given our careful consideration to the subject matter. The complainant has to be compensated. But the compensation has to be reasonable. The NCDRC in the matter of Surender Kumar Tyagi vs. Jagat Nursing Home - IV(2010)CPJ 199 (NC) "Compensation has to be reasonable. It is not to enrich the Consumer"
Keeping entire facts into account, we order compensation in favour of the complainant for an amount of Rs.11.84 lakhs paid by him along with interest @12% from the date of payment till the date payment was made. We also direct payment of an amount of Rs.34,75,344/-, on account of appreciation in the market value of the property, the OP having been found deficient in the discharge of their duty alongwith interest @9% till its realization. Further compensation to the complainant of an amount of Rs.50,000/- is awarded for causing mental agony and harassment to the complainant. We direct the OP to comply with this directions within two months from the date of receipt of this order.
We order accordingly. Copy of the order be sent to the parties free of cost as statutorily required.
File be consigned to records.
(ANIL SRIVASTAVA) (O.P.GUPTA) MEMBER MEMBER (JUDICIAL)