Order Date: Not Mentioned
Order Name: Kishor V. Patil Vs. M/S. Marvel Zeta Developers Pvt. Ltd.
Case No.: C.C. No. 58/2022
The National Consumer Disputes Redressal Commission, led by Justice Ram Surat Maurya and Mr. Bharatkumar Pandya, has ruled that builders must deliver completed units along with the conveyance deed. Failure to do so is considered a deficiency in service.
Case Background
Kishor V. Patil booked a flat with Marvel Developers, which was part of their "Marvel Piazza" project in Pune. The developer had promised to complete the project and give possession by a certain date. However, after making significant payments, Patil discovered delays and issues. Part of the project was affected by an Air Force restriction area, impacting the promised amenities. Despite numerous follow-ups, the developer neither handed over possession nor refunded the money. Patil took legal action, including filing complaints with the police and the Maharashtra Real Estate Regulatory Authority (RERA), but the problems persisted, leading him to file a consumer complaint.
Developer’s Defense
The developer admitted to the bookings, agreements, and payments made by Patil. They clarified that "Marvel Piazza" consists of 11 buildings and that the amenities did not include the "Air Force Restricted Zone" as claimed. Patil had taken possession for interior work and received a rebate but later made illegal constructions. This led to objections from municipal authorities and delays in obtaining the occupancy certificate. The developer argued that Patil was at fault for delayed payments and falsely initiated criminal proceedings. They also claimed that the complaint was barred by limitation, filed for commercial purposes, and not maintainable due to pending complaints before RERA. The developer requested the dismissal of the complaint.
National Commission’s Observations
The National Commission noted that, according to the Supreme Court’s judgment in Ireo Grace Realtech Private Limited vs Abhishek Khanna (2021) 3 SCC 241, the developer’s argument for estoppel by election was unfounded. Patil had withdrawn his complaints from RERA and settled, but the developer agreed to the Commission’s jurisdiction for the remaining claims. The argument that the complaint was time-barred was also dismissed since possession was offered within two years of obtaining the occupation certificate.
The Commission referred to several Supreme Court cases, including Lata Construction vs Dr. Ramesh Chandra Ramaniklal Shah (2000) 1 SCC 586 and Samruddi Cooperative Housing Society Limited vs Mumbai Mahalaxmi Construction Pvt. Ltd., AIR 2022 SC 428. These cases established that a builder is legally obligated to deliver a completed unit and execute the conveyance deed, and failure to do so constitutes a continuing wrong.
Regarding the claims for land reimbursement, the Commission found no evidence that the developer received compensation or Transferable Development Rights (TDR) for the land transferred for public use, dismissing individual claims for compensation. The ₹25 lakhs compensation claim for unprovided amenities was also rejected, as the sanctioned plan did not include such amenities, and photographs verified the presence of the promised amenities.
The delay in offering possession was attributed to factors like demonetization, unauthorized construction by Patil, and the COVID-19 pandemic, justifying an extension of time. However, the Commission found it appropriate to grant compensation for the delay from January 2018 to December 2019, calculated at 6% interest per annum, aligning with the Supreme Court’s decision in DLF Home Developers Pvt. Ltd. vs. Capital Green Flat Buyer’s Association (2021) 5 SCC 537.
The National Commission allowed the appeal and directed the builder to pay delay compensation in the form of interest at 6% per annum.
Takeaway:
This ruling reinforces that builders must fulfill their commitments to deliver completed units along with the necessary conveyance deeds. Any delays or failures in this obligation can result in compensation claims by homebuyers, ensuring that developers are held accountable for their promises.
