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Thursday, October 25, 2018

under Section 23 of the Consumer Protection Act, 1986 = Possession of the flat was offered to the Respondent – Purchaser in December 2015 after obtaining the Completion Certificate for the building. Even though the Agreement provided for delivery of possession by 31.10.2013, the delay occurred because of various legal impediments in timely completion of the project because of various Orders passed by the National Green Tribunal. The delay ought to be computed from 6 months after 31.10.2013, i.e. from 01.05.2014 by taking into consideration, the 6 months grace period provided in the Agreement. Furthermore, the period of Interest should close on April 2016 when the Full Occupancy Certificate was obtained as per the admission of the Respondent – Purchaser herself in Para 4(j) of the Consumer Complaint, wherein she has admitted that the Appellant – Builder had obtained the Completion Certificate as late as April 2016. The Respondent – Purchaser could not have any further grievance after April 2016 with respect to delay in handing over possession. The Respondent – Purchaser ought not to be allowed to reap the benefits of her own delay in taking possession.

NON­REPORTABLE
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NOS. 6649­50 OF 2018
M/s. Supertech Ltd.           …Appellant
Versus
Rajni Goyal                                    …Respondent
J U D G M E N T
INDU MALHOTRA, J.
1. The present Civil Appeals have been filed under Section 23 of
the   Consumer   Protection   Act,   19861
  to   challenge   the
Judgment and Order dated 22.03.2018 in Review Application
No.   94   of   2018   and   the   Judgment   and   Order   dated
1 Section 23. Appeal – Any person, aggrieved by an order made by the National Commission
in exercise of its power conferred by sub­clause (i) of clause (a) of section 21, may prefer an
appeal against such order to the Supreme Court within a period of thirty days from the date
of the order:
Provided that the Supreme Court may entertain an appeal after the expiry of the
said period of thirty days if it is satisfied that there was sufficient cause for not filing it
within that period.
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07.02.2018 in Consumer Complaint No. 708 of 2017 passed
by the National Consumer Disputes Redressal Commission at
New Delhi.
2. The factual matrix of the present case, briefly stated, is as
under:
2.1. The   Appellant   –   Builder   was   developing   a   project
named ‘Capetown’ in Sector 74, Noida. The Respondent –
Purchaser booked a residential flat with the Appellant –
Builder in the said project.
2.2.    On 22.05.2012, the Appellant – Builder vide Allotment
Letter   allotted   Flat   No.   1606   to   the   Respondent   –
Purchaser. As per the Allotment Letter, possession would
be handed over in October 2013. This period could be
extended   due   to   unforeseen   circumstances   by   a
maximum of 6 months.
    The Agreement also provided for escalation charges if
there was any fluctuation in the price of construction
materials   and/or   labour   costs   during   the   course   of
construction, payable by the Respondent – Purchaser.
    The Agreement provided for payment of maintenance
charges by the Respondent – Purchaser for maintenance
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and upkeep of the complex. These maintenance charges
were payable from the date of issuance of a ‘Letter of
Offer of Possession’.
2.3.      The Appellant – Builder was not able to hand over
possession   of   the   flat   in   October   2013   as   per   the
Allotment Letter dated 22.05.2012.
2.4.    The Appellant – Builder issued a Pre­Possession Letter
on   12.10.2015   to   the   Respondent   –   Purchaser   for
completion   of   formalities,   before   possession   could   be
handed over. The Pre­Possession Letter stated that upon
completion   of   formalities   as   specified   in   the   Letter,
possession of the flat would be offered to the Respondent
–   Purchaser.   The   Respondent   –   Purchaser   was   called
upon to pay Rs. 12,35,656/– towards the balance cost of
the flat, maintenance charges, labour welfare charges,
water   connection   charges,   escalation   costs,   etc.   The
Respondent – Purchaser was called upon to deposit the
charges on or before 11.11.2015.
2.5.   The Respondent – Purchaser failed to pay the charges
demanded   as   per   the   Pre­Possession   Letter   by   the
Appellant – Builder.
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2.6.       That   after   over   15   months,   on   15.03.2017,   the
Respondent   –   Purchaser   filed   a   Consumer   Complaint
under Section 21(a)(i) of the Consumer Protection Act,
19862
 before the National Consumer Disputes Redressal
Commission   [hereinafter   referred   to   as   “the
Commission”]. The Respondent – Purchaser challenged
the Pre­Possession Letter on the ground that on the date
of issuance of the Pre­Possession Letter, the Appellant –
Builder had not obtained the Occupancy Certificate. The
Respondent   –   Purchaser   also   challenged   the   various
charges demanded by the Appellant – Builder in the PrePossession
Letter.
2.7.       The   Commission  vide  Judgment   and   Order   dated
07.02.2018, partly allowed the Consumer Complaint of
the Respondent – Purchaser.
2 Section 21. Jurisdiction of the National Commission – Subject to the other provisions of
this Act, the National Commission shall have jurisdiction—
(a) to entertain—
      (i) complaints where the value of the goods or services and compensation, if any,
claimed exceeds rupees
           one crore; and
      (ii) appeals against the orders of any State Commission; and
(b) to call for the records and pass appropriate orders in any consumer dispute
which is pending before or has been decided by any State Commission where it appears to
the National Commission that such State Commission has exercised a jurisdiction not
vested in it by law, or has failed to exercise a jurisdiction so vested, or has acted in the
exercise of its jurisdiction illegally or with material irregularity.
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  The Commission held that out of the charges mentioned
in   the   Pre­Possession   Letter   dated   12.10.2015,   the
Appellant   –   Builder   was   entitled   to   payment   of   the
following amounts –
i) An   amount   of   Rs.   3,166/–   towards   interest   on
delayed payment.
ii) Water connection charges if paid to the concerned
Authority,   on   proportionate   basis   subject   to
furnishing proof of such payment, in terms of this
order.
iii) Labour welfare charges subject to furnishing proof
and computation with respect to the said charges in
terms of this order.
iv) Escalation charges + service tax amounting to Rs.
3,88,797.19/–
   However, the Commission held that since there was a
delay   in   handing   over   possession   of   the   flat   to   the
Respondent – Purchaser, the Appellant – Builder was
liable to pay Interest to the Respondent – Purchaser by
way of compensation. The scheduled date for handing
over possession was 31.10.2013. The Appellant – Builder
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had issued the Pre­Possession Letter on 31.10.2015. As
per the Respondent – Purchaser, the Appellant – Builder
did not have the Occupancy Certificate on that date.
     The Commission directed the Appellant – Builder to
pay compensation in the form of Simple Interest @8%
p.a. from 01.11.2013 till the date on which possession
was actually offered to the Respondent – Purchaser.
2.8.       Aggrieved   by   the   Order   dated   07.02.2018,   the
Appellant   –   Builder   filed   a   Review   Petition.   The   said
Review Petition was dismissed by the Commission  vide
Order dated 22.03.2018.
2.9.    Aggrieved by the Order passed by the Commission in
the Consumer Complaint as also in the Review Petition,
the Appellant – Builder has preferred the present Civil
Appeals   before   this   Court   under   Section   23   of   the
Consumer Protection Act, 1986.
3. We have heard the Counsel for the parties, and perused the
pleadings of the case.
4. The Appellant – Builder inter alia submitted that –
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     Possession of the flat was offered to the Respondent –
Purchaser in December 2015 after obtaining the Completion
Certificate for the building.
      Even   though   the   Agreement   provided   for   delivery   of
possession   by   31.10.2013,   the   delay   occurred   because   of
various legal impediments in timely completion of the project
because   of   various   Orders   passed   by   the   National   Green
Tribunal. The delay ought to be computed from 6 months
after   31.10.2013,   i.e.   from   01.05.2014   by   taking   into
consideration,  the  6  months  grace  period  provided  in  the
Agreement.
    Furthermore, the period of Interest should close on April
2016 when the Full Occupancy Certificate was obtained as
per the admission of the Respondent – Purchaser herself in
Para   4(j)   of   the   Consumer   Complaint,   wherein   she   has
admitted   that   the   Appellant   –   Builder   had   obtained   the
Completion Certificate as late as April 2016. The Respondent
– Purchaser could not have any further grievance after April
2016 with respect to delay in handing over possession. The
Respondent – Purchaser ought not to be allowed to reap the
benefits of her own delay in taking possession.
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5. In   light   of   the   aforesaid   discussion,   the   period   of
compensation of Interest must be computed from 01.05.2014
till 30.04.2016 at the rate awarded by the Commission.
6. The Order of the Commission is modified only to the extent
mentioned hereinabove.
7. The Appeals are disposed of accordingly.
.......................................J.
(ABHAY MANOHAR SAPRE)
.…...............………………J.
(INDU MALHOTRA)
New Delhi,
October 23, 2018.
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