MANU/SC/0463/2019

True Court CopyTM English

IN THE SUPREME COURT OF INDIA

Civil Appeal Nos. 12238 of 2018 and 1677 of 2019

Decided On: 02.04.2019

Appellants: Pioneer Urban Land & Infrastructure Ltd. Vs. Respondent: Govindan Raghavan and Ors.

Hon'ble Judges/Coram:
U.U. Lalit and Indu Malhotra

JUDGMENT

Indu Malhotra, J.

1. The present statutory Appeals have been filed Under Section 23 of the Consumer Protection Act, 1986 to challenge the Final judgment and Order dated 23.10.2018 passed in Consumer Case No. 238 of 2017 and Consumer Case No. 239 of 2017 by the National Consumer Disputes Redressal Commission (hereinafter referred to as "the National Commission").

2. Since a common issue arises in both the Civil Appeals, they are being disposed of by the present common judgment and Order.

3. For the sake of brevity, the facts in C.A. No. 12238 of 2018 are being referred to, being the lead matter.

The factual matrix of the said Civil Appeal is as under:

3.1. The Appellant-Builder launched a residential project by the name "Araya Complex" in Sector 62, Golf Course Extension Road, Gurugram.

The Respondent-Flat Purchaser entered into an Apartment Buyer's Agreement dated 08.05.2012 with the Appellant-Builder to purchase an apartment in the said project for a total sale consideration of Rs. 4,83,25,280/-. As per Clause 11.2 of the Agreement, the Appellant-Builder was to make all efforts to apply for the Occupancy Certificate within 39 months from the date of excavation, with a grace period of 180 days.

3.2. The excavation of the project commenced on 04.06.2012. As per Clause 11.2 of the Agreement, the Builder was required to apply for the Occupancy Certificate by 04.09.2015, or within a further grace period of 6 months i.e. by 04.03.2016, and offer possession of the flat to the Respondent-Flat Purchaser.

The Appellant-Builder however failed to apply for the Occupancy Certificate as per the stipulations in the Agreement.

3.3. The Respondent-Flat Purchaser filed a Consumer Complaint before the National Commission on 27.01.2017 alleging deficiency of service on the part of the Appellant-Builder for failure to obtain the Occupancy Certificate, and hand over possession of the flat.

The Respondent prayed inter-alia for:

• Refund of the entire amount deposited being Rs. 4,48,43,026/-, along with Interest @18% p.a.; and

• Compensation Rs. 10,00,000/- for mental agony, harassment, discomfort and undue hardship; and

• Refund of the wrongfully charged taxes including Service Tax, and other charges along with Interest @18% p.a.; and

• Litigation Costs of Rs. 1,00,000/-.

3.4. On 06.02.2017, the National Commission passed an ex-parte Interim Order restraining the Appellant-Builder from cancelling the allotment made in favour of the Respondent-Flat Purchaser during the pendency of the Consumer Case.

3.5. During the pendency of the proceedings before the National Commission, the Appellant-Builder obtained the Occupancy Certificate on 23.07.2018, and issued a Possession Letter to the Respondent-Flat Purchaser on 28.08.2018.

3.6. The Appellant-Builder submitted before the National Commission that since the construction of the apartment was complete, and the Occupancy Certificate had since been obtained, the Respondent-Flat Purchaser must be directed to take possession of the apartment, instead of directing refund of the amount deposited.

3.7. The Respondent-Flat