Order Date: 29th July 2024
Order Name: S.K. Rathore vs Ansal Properties and Infrastructure Ltd. and Anr. (and connected matters)
Case No.: First Appeal No. 44 of 2018
The National Consumer Disputes Redressal Commission (NCDRC) has held Ansal Properties and Infrastructure Ltd. accountable for failing to deliver a flat on time despite receiving regular payments. The bench, led by Subhash Chandra (Presiding Member), ruled in favor of the complainant, who had booked a flat in the ‘Celebrity Meadows’ project in Sushant Golf City, Lucknow.
Key Details:
Background:
- The complainant booked a flat priced at Rs. 35,35,165/- and paid an initial amount of Rs. 1,82,000/- in 2010.
- The possession was promised within 36 months from the approval of building plans, subject to certain conditions.
- By October 2015, the complainant had paid Rs. 32,38,255/- but did not receive possession by the expected date in October 2013.
- Additional payments were made upon demand, yet the flat was not delivered.
State Commission Order:
- The State Consumer Disputes Redressal Commission, Uttar Pradesh, initially directed Ansal Properties to complete the flat and hand over possession within three months upon receiving the balance amount.
- Ansal Properties was also ordered to pay Rs. 10,000/- as litigation costs.
Appeals:
- Dissatisfied, the complainant appealed to the NCDRC for higher compensation.
- Ansal Properties also appealed, seeking to overturn the State Commission’s order.
NCDRC Observations:
- Delay in Project Completion: Ansal Properties admitted the project was incomplete and lacked necessary certificates even after ten years.
- Legal Precedents: The NCDRC cited multiple Supreme Court judgments, emphasizing that buyers should not be forced to accept delayed possession and are entitled to refunds with compensation or interest.
- Force Majeure Argument: Ansal Properties’ claim that delays were due to uncontrollable factors was unsupported by evidence and rejected.
- IBC Proceedings: Ansal Properties’ reliance on an unrelated insolvency order was dismissed as irrelevant.
Final Decision:
- Refund with Interest: The NCDRC directed Ansal Properties to refund all amounts paid by the complainant with 9% interest per annum from the respective deposit dates.
- Litigation Costs: Ansal Properties was also ordered to pay Rs. 50,000/- as litigation costs.
Takeaway:
This judgment reinforces that property developers must adhere to promised timelines, and buyers are entitled to refunds with compensation if there are undue delays. It serves as a reminder to always verify the credibility and track record of developers before making significant financial commitments.
