Case Title: Pinaki Bhattacharjee Vs. M/S. Unique Construction
Case Number: F.A. No. 286/2018
In a recent case, the National Consumer Disputes Redressal Commission, led by Subhash Chandra and Sadhna Shanker, made a decision that concerned a dispute with Unique Construction. The commission determined that in the event of a party performing additional work, not meant to be free of cost, and the other party gaining benefits from it, the party who did the work can ask for compensation.
Here’s a quick look at the case details:
Pinaki Bhattacharjee had locked a deal with Unique Construction to buy a flat for Rs. 41,28,000. He paid the total amount of Rs. 60,00,000 by cheque and an additional Rs. 4,00,000 in cash for the flat and parking space. He also paid Rs. 2,00,000 for extra work in the flat. However, despite receiving full payment, Unique Construction failed to formalize the sale agreement for the parking space.
Feeling wronged, Bhattacharjee turned to the State Commission. He asked for the registration of the property’s Deed of Conveyance and that the builder hand over the parking space. He also sought Rs.5,00,000 as compensation for the distress and the legal costs. The State Commission partially agreed with Bhattacharjee, who then brought his case to the National Commission.
Unique Construction, in its defense, referred to a Supreme Court verdict. The verdict stated that a party doing extra work is entitled to compensation if the other party benefits from it. They argued that there was nothing unjust about the additional money paid for extra work beyond the initial agreement. They also pointed out that Bhattacharjee hadn’t asked for a refund for the additional work in his complaint.
The Commission, after reviewing the case details, noted that Bhattacharjee had claimed and paid for a parking space but failed to provide a receipt or any other proof. The primary agreement was for the flat sale, not including the parking space. In addition, there was no proof that Bhattacharjee had authorized the builder to do any extra work. The agreement did not include any provision for a parking space, so there was no reason for Bhattacharjee to claim one or demand a refund.
The commission agreed with Unique Construction’s argument. If a party does extra work without intending it to be free and the other party benefits from it, the former should be compensated. Bhattacharjee chose not to press any claim about the additional area constructed, as confirmed by the Engineer Commissioner’s report.
The Commission found that Unique Construction had delayed handing over the flat beyond the agreed 24 months. For this, they were asked to pay Rs. 1 Lakh as compensation. The State Commission’s decision to award Bhattacharjee Rs. 10,000 as litigation costs was also upheld. Unique Construction was ordered to pay these amounts within 30 days or face a 6% annual interest until the payment was made.
The key takeaway from this judgment is the importance of making clear agreements and keeping records of transactions. Always make sure to get written permission for any additional work and keep proof of all payments made.
