2) To be referred to the Reporters or not? Yes/No
3) Whether judgment should be reported in the Digest? Yes/No Argued By:- For the appellant : Ms. Kavita Arora, Advocate For the respondent : Sh. Surinder Singh, Advocate. JUSTICE PARAMJEET SINGH DHALIWAL, PRESIDENT The instant appeal has been filed by the appellant/opposite party against the order dated 03.12.2019 passed by District Consumer Disputes Redressal Forum, Jalandhar (in short, the District Forum), whereby the complaint filed by the respondent/complainant, under Section 12 of the Consumer Protection Act, 1986, was partly accepted in the following manner: First Appeal No.87 of 2020 accordingly, the complaint of the complainant is partly accepted and OP is directed to refund the price of the flat i.e. 3,91,000/- along with interest @ 9% per annum from the date of each deposits, till realization and further, OP is directed to pay a compensation to the complainant for mental agony and harassment caused to the complainant, to the tune of 25,000/- and further directed to pay litigation expenses of 7,000/-. The entire compliance be made within one month from the date of receipt of the copy of order.
2. It would be apposite to mention that hereinafter the parties will be referred, as have been arrayed before the District Forum. Facts of the Complaint
3. Brief facts, as averred in the complaint, are that being allured by the representations made by the opposite party through advertisements regarding allotment of L.I.G. flats in its scheme known as 3.56 acres Indrapuram (Master Gurbanta Singh Enclave), Jalandhar, the complainant applied for allotment of flat therein. He was allotted LIG Flat No.115-A, Second Floor in the said scheme, vide allotment letter dated 04.11.2008. The complainant submitted all the relevant papers, deposited the necessary fee and completed all other formalities with regard to allotment of the flat. A sum of 3,91,000/- was paid by him towards the price of the flat i.e. 3,52,200/- and the last instalment was to be paid on 08.08.2011, as per payment schedule given in the allotment letter. Possession of the flat was to be delivered within two and half years from the date of allotment. However, the opposite party failed to deliver possession of the flat even despite lapse of eight years from the date of allotment. No valid or justified reason was given by it for delay in delivery of possession. The complainant had been running from pillar to post for taking First Appeal No.87 of 2020 possession of the flat, but all in vain. Alleging deficiency in service on the part of the opposite party, the complainant approached the District Forum by way of filing the complaint, seeking following directions to them:
a) to refund the amount of 3,91,000/- paid by the complainant along with interest @ 12% per annum from the date of payment till realization;
b) to pay compensation/punitive damages of 50,000/-, under Section 14 (1) (d) of the Act, for the mental tension, pain and agony suffered by the complainant at the hands of the opposite party;
c) to pay cost of proceedings of the complaint i.e. 10,000/-;
d) to pay 1,000/- on account of fee of 400/- paid for filing the complaint, besides postal expenses and expenses for copying and typing etc. Defence of the Opposite Party
4. Upon notice, the opposite party appeared before the District Forum and filed reply to the complaint, raising preliminary objections that the complaint did not disclose any cause of action. The complaint was hopelessly time barred. The allotment of the flat was made way back on 04.01.2008 on as is where and situation basis. The complainant could take the possession if he wanted. However, he never sought possession of the flat and approached the District Forum only after 8 years of allotment. The opposite party is yet to receive any letter for possession from the complainant. No allurement was ever First Appeal No.87 of 2020 made to the applicants for the allotment of flats. The complainant applied for allotment of flat after being fully satisfied and scrutinizing the entire situation at the site. The complaint was bad on principle of caveat emptor. The complaint was frivolous and vexatious and was liable to be dismissed due to the suppression of material facts. The complainant was estopped by his own act and conduct to file the complaint. The complaint was bad for non-joinder of necessary parties. On merits, facts regarding allotment of the flat, in question, and payment of amount, as mentioned in the complaint, were admitted. It was pleaded that the possession was ready, but the complainant himself avoided to take the same. As such, there was no question of any delay in delivery of possession. It was further pleaded that instead of taking the possession, the complainant made a request to allot the flat in some other scheme; which was not permissible. It was denied that any request was made by the complainant for delivery of possession. There was no deficiency in service on the part of the opposite party. All other allegations levelled in the complaint were denied and it was prayed that the complaint be dismissed with costs. Evidence of the Parties and Finding of the District Forum
5. The complainant, in support of his claim, tendered his own affidavits Ex.C-A & Ex.C-B along with copies of documents i.e. allotment letter dated 04.11.2008 Ex.C-1, letter dated 30.01.2015 Ex.C-2 and payment receipts Ex.C-3 to Ex.C-8. The opposite party failed to lead any evidence, despite availing sufficient opportunities and, as such, its evidence was closed, vide order dated 25.02.2019. First Appeal No.87 of 2020
6. The District Forum, after going through the record and hearing learned counsel for the complainant, partly accepted the complaint, vide impugned order. Hence, this appeal. Contentions of the Parties
7. I have heard learned counsel for the parties at the admission stage of the appeal and have carefully gone through the records of the case.
8. Learned counsel for the appellant/opposite party has vehemently contended that the District Forum failed to appreciate the fact that the possession of the flat, in question, was always already, but the complainant did not come forward to take the same. In fact, he requested the opposite party to allot the flat in Guru Amar Dass Nagar Development Scheme or Bibi Bhani Complex, on the ground that the flat allotted to him was far away from the city. The matter of change of allotment remained under consideration with various offices and, as such, the complainant had not been taking possession of the flat, in question. Thus, there was no delay on the part of the opposite party in this regard. It has been further contended that the complaint was time barred, as it was filed beyond the period of limitation. Last instalment was paid by him on 08.08.2011 and the complaint could have been filed by 08.08.2013, whereas the same was filed on 14.03.2016. No application for condonation was filed, along with the complaint. It has been further contended that large number of allottees are residing in the scheme, in question, and as per report dated 21.01.2020 of Trust Engineer, the flat allotted to the complainant is complete in all First Appeal No.87 of 2020 respects; which include construction work, water supply, electricity, sewerage, roads etc. and the same is fit for inhabitation. It has been further contended that the District Forum awarded exorbitant rate of interest i.e. 9% on the total amount paid by the complainant. There is no provision under the Punjab Town Improvement Act, 1922 or under the Rules of allotment for refund of the amount deposited by an allottee, other than to the persons, who have remained unsuccessful in the draw of lots. The District Forum passed the impugned order on the basis of conjectures and surmises and the same is liable to be set aside.
9. Per contra, learned counsel for respondent/complainant has vehemently contended that the opposite parties failed to complete the construction of the project/flat, in question, within the stipulated period, despite receipt of substantial amount towards the sale consideration of the flat. As per Clause 7 of the allotment letter dated 04.11.2008, the construction and development work of the flat/complex surrounding were to be completed within 2 years of allotment i.e. up to May, 2011. However, the project was not completed even up to the filing of the complaint, nor the possession of the flat was delivered. Even if the complainant requested the opposite party for change of allotment in some other scheme, even then neither the allotment was changed nor the possession of the flat, in question, was allotted to him within the stipulated period or thereafter. Therefore, the District Forum, has taken all these facts and circumstances into consideration and passed the well reasoned and speaking order. There is no ground to First Appeal No.87 of 2020 interfere in the impugned order and the appeal is liable to be dismissed. Consideration of Contentions
10. I have given my thoughtful consideration to the respective contentions raised by the learned counsel for the parties.
11. Admittedly, the complainant applied for allotment of LIG flat in the scheme launched by the opposite party known as 3.56 acres Indrapuram (Master Gurbanta Singh Enclave), Jalandhar and he was declared successful in the draw of lots held on 24.08.2008 and was allotted LIG flat No.115A, Second Floor, vide allotment letter dated 04.11.2008 Ex.C-1. As per Clause-7 of the allotment letter, the construction of the flat and development activities were to be completed and the payment of entire instalments towards sale consideration were to be made within two and a half years from the date of allotment and thereafter possession of the flat was to be delivered. It is an admitted fact that the complainant had paid the amount of 3,91,000/- towards the price of the flat. This fact is also evident from receipts Ex.C-3 to Ex.C-8. However, the opposite party failed to complete the construction and development works at the site and deliver possession of the said flat within the stipulated period.
12. For the sake of repetition, it needs to be mentioned that the opposite party failed to lead any evidence before the District Forum, despite availing sufficient number of opportunities and, as such, its evidence was closed by order. Thus, the pleadings taken by the opposite party in its reply have not supported by any documentary First Appeal No.87 of 2020 evidence. The Misc. Application filed by the appellant/opposite party for leading additional evidence has also been dismissed, vide separate order of even date, on the grounds that the documents sought to be produced appear to have come into existence after filing the complaint and the same were already in possession of the opposite party. So there is no evidence on record to prove that the construction/development works at the project site were completed by them within the stipulated period. Even the alternative flat was also not allotted, despite request of the complainant, vide letter Ex.C-2, and the matter kept pending for a long period. In such circumstances, the complainant was justified in withholding payment of further instalments. The plea of the opposite party that the possession of the flat, in question, was always ready, but the complainant did not come forward to take the possession is not tenable; as no such letter was issued by it to the complainant. Even otherwise, no Completion Certificate, as envisaged under Section 14 of the Punjab Apartment and Property Regulation Act, 1995 (in short, PAPRA) was produced by the opposite party before the District Forum or this Commission, to prove that the flat, in question, had been completed in all respects within the stipulated period or thereafter. In the absence of Completion/Occupation Certificate, the actual and physical possession of a property cannot be legally delivered. The Honble National Commission in its order dated 13.06.2018 passed in First Appeal No.855 of 2018 (Vision India Realtors Pvt. Ltd. & Anr. v. Sanjeev Malhotra also categorically held that legal possession cannot be First Appeal No.87 of 2020 delivered in the absence of Completion Certificate issued by the Competent Authority. It was held in Para No.5 as follows:
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.
13. In the present case also, there is no evidence on record to prove that the flat, in question, or a part thereof has been got certified by the opposite party from the local/competent authority, so as to deliver its complete possession to the complainant for his use and occupation. As such, the plea of the opposite party that the possession of the flat, in question, was ready is false and baseless.
14. Regarding the point of delay in delivery of possession and limitation, the Honble National Commission in case Kaushik Guha v. Bengal Unitech Universal Infrastructure Pvt. Ltd. IV (2018) CPJ-
395 (NC) relied upon its earlier decision in CC No.398/2015 (Sipra Thomes v. Bengal Unitech Universal Infrastructure Pvt. Ltd.) decided on 19.05.2016, in which it was held in Para No.4 to 6 as under:
4. The complaints have been resisted by the opposite party on identical ground. Though the booking made by the complainants as well as the Buyers Agreement with them has First Appeal No.87 of 2020 been admitted, it is alleged that there was delay in grant of statutory approvals and permissions related to infrastructural work such as road, electricity, water and sewerage which were beyond the control of the opposite party. It is further stated in the written version filed by the opposite party that in the event of delay, the complainants are entitled only to the compensation agreed in the Buyers Agreement which is Rs. 5/- per sq. feet of the super area per month. Another plea taken by the opposite party is that the complainant is barred by limitation prescribed under section 24A of the Consumer Protection Act.
5. The first question which arises for consideration in these cases is as to whether the opposite party has been able to justify the delay in construction of the flats which it had agreed to sell to the complainants. Though it is alleged that there was delay in obtaining the approvals and permissions required for infrastructural works such as road, electricity, water and sewerage, there is no evidence to prove that the alleged delay occurred on account of reasons not attributable to or beyond the control of the opposite party. In order to justify the delay on the aforesaid ground, the opposite party was required to disclose the dates on which it applied for the requisite permission and the date on which the said permission was granted. It was also required to place on record the entire correspondence between it and the concerned statutory authority in order to demonstrate that the said delay was attributable solely to the concerned statutory authority and not to any deficiency or defect on its part in seeking such a permission from the concerned statutory authority. Moreover, the opposite party was also required to specify how much was the delay attributable to the time taken by the statutory authorities in granting approvals for infrastructural services. Only then, it could have justified the delay to the extent it was attributable solely to the concerned statutory authority. In this regard, it has to be kept in mind that the delay in these cases is not of just a few months. Here, they were required to deliver the possession by March 2010/September 2011 and about 5/6 years from the possession deadline have already expired. Therefore, even if it is presumed for the sake of arguments that there was delay of a few months on the part of the concerned statutory authorities in granting approvals for infrastructural services, that cannot justify the delay of five - six years.
6. It is next contended by the learned counsel for the opposite party that the booking having been made way back in the year 2007/2008 and the date stipulated in the Buyers Agreement for delivering possession also having expired more than two years before these complaints were filed, the said complaints are clearly barred by limitation. We however, are unable to accept the contention. It has to be kept in mind that a First Appeal No.87 of 2020 person books a residential flat for the purpose of having a roof over his head and not for the purpose of claiming refund with compensation at a later date. Therefore, the attempt of the buyer would be to get possession of the residential flat booked by him even if there is some delay in obtaining the said possession. Therefore, he would like to wait for the buyer to deliver till the time either the seller refuses to deliver the possession or till he loses all hopes of getting possession and therefore does not want to wait any more for the seller to deliver the possession of the flat. In such a case, the buyer, in our opinion, has a recurrent cause of action till the time either the seller delivers the possession or refuses to deliver possession, or expresses his inability to construct the flat sold by him. The cause of action may also arise earlier if the buyer asks the builder to refund the amount paid by him. In that case, if he does not approach the Consumer Forum within two years of demanding the refund, the claim may become barred by the limitation prescribed in section 24A of the Consumer Protection Act. However, as far as these cases are concerned, considering that the opposite party never refused to deliver possession to the complainant, it would be difficult for us to say that the complaints are barred by limitation.
15. Therefore, in view of the ratio of the law laid down in the above noted case, since the possession has not been delivered nor the amount has been refunded, so there is continuous cause of action in favour of the complainant. However, the complainant cannot be made to wait for delivery of possession for an indefinite period and his demand for refund of the amount deposited by him, along with interest was justified, on account of failure of the opposite party to complete the project/flat within the stipulated period. Furthermore, the Honble National Commission held in case Consumer Case No. 1702 of 2016 (Shalabh Nigam v. ORRIS Infrastructure Pvt. Ltd. & Anr.) decided on 06.05.2019 that the allottees have right to ask for refund if the possession is inordinately delayed and particularly beyond one year after stipulated period. First Appeal No.87 of 2020
16. In view of my above discussion as well as the law laid down in the above noted cases, it is clear that the opposite party failed to complete the construction of the flat, in question, and development works at the site and deliver possession of the flat within the stipulated period. As such, the complainant has been rightly held entitled to refund of the amount deposited by him, along with interest at the rate of 9% per annum and compensation and litigation expenses. The said rate of interest cannot be said to be exorbitant and is quite reasonable.
17. Accordingly, there is no ground to admit the appeal and the same is hereby dismissed in limine.
18. The appellant had deposited a sum of 25,000/- at the time of filing of the appeal. Out of this amount, a sum of 10,000/- be deposited in the Consumer Legal Aid Account of this Commission, towards costs imposed on the appellant, while dismissing Misc. Application No.439 of 2020. The remaining amount, along with interest, which has accrued on the total amount of 25,000/-, if any, shall be remitted by the registry to the District Forum forthwith. The respondent/complainant may approach the District Forum for the release of the above amount and the District Forum may pass the appropriate order in this regard after the expiry of limitation period in accordance with law. (JUSTICE PARAMJEET SINGH DHALIWAL) PRESIDENT August 10, 2020. (Gurmeet S)