Order Date: 22nd July 2024
Order Name: Kuldeep Singh and Anr. vs DLF Homes Panchkula Pvt. Ltd. and Anr.
Case No.: C.C. No. 1937 of 2017
The National Consumer Disputes Redressal Commission (NCDRC), led by Justice A.P. Sahi, found DLF Homes Panchkula Pvt. Ltd. liable for deficient service and unfair trade practices. The case revolved around DLF Homes’ failure to execute a plot-buyer’s agreement and subsequent cancellation of the booking with an excessive forfeiture amount.
Key Points:
Background:
- Booking and Payments: The complainant booked a plot in DLF Valley Panchkula and paid Rs. 12,00,000 as the booking amount. The total plot cost was Rs. 1,78,10,452.51, payable over two years in 11 installments. Payments were made as per the plan until the last one on 23rd August 2013.
- Deficient Agreement: DLF Homes included one-sided terms in the application form and failed to provide the Plot Buyer’s Agreement. Despite the complainant’s continued payments, DLF Homes did not complete the necessary legal formalities, leading to the cancellation of the plot on 18th November 2014.
- Refund Request: The complainant requested a refund of Rs. 61,64,228 with 18% interest in 2016, which DLF Homes did not honor.
NCDRC Observations:
- Timeliness: Referring to a Supreme Court decision, the NCDRC deemed the complaint within the allowable time frame, as the cause of action was ongoing due to DLF Homes’ failure to respond to the refund request.
- Unfair Practices: The bench found that DLF Homes’ failure to execute the Plot Buyer’s Agreement and imposing excessive interest on delayed payments were unfair practices. The complainant was justified in stopping further payments due to these delays.
- Forfeiture: The NCDRC ruled that forfeiture of the booking amount should be reasonable, not exceeding 10% of the total amount. Therefore, only Rs. 1,20,000 of the booking amount could be forfeited.
Outcome:
DLF Homes was ordered to refund the remaining amount paid by the complainant with 6% interest.
Practical Takeaway:
If you’re buying property, ensure that all agreements are properly executed and signed by both parties. Should the developer fail to provide the necessary agreements or delay possession, you have the right to seek legal recourse. The forfeiture of booking amounts must be reasonable and proportionate to the total cost, not exceeding 10%.
