Refunds with Interest Due for Delayed Possession: NCDRC Ruling

Order Date: Not Mentioned
Order Name: Sudershan Goel Vs. Assotech Moonshine Urban Developers Ltd.
Case No.: C.C No. 1955/2017

The National Consumer Disputes Redressal Commission, led by Justice Ram Surat Maurya, ruled that Assotech Developers were at fault for delaying the handover of a booked flat, emphasizing that buyers should not be kept waiting indefinitely for possession.

### Brief Facts of the Case

Sudershan Goel booked a flat with Assotech Developers and paid the booking amount. The developer allocated a flat and promised possession within 42 months, plus an additional six-month grace period. Goel paid about 25% of the total sale price within four months and continued making payments as demanded, eventually paying more than the basic sale price. Despite this, the developer failed to deliver the flat on time. Frustrated by financial losses and ongoing interest on his housing loan, Goel sent multiple notices to the developer requesting a refund with interest. When the developer did not respond, Goel filed a complaint with the National Commission.

### Developer’s Response

The developer did not submit its written response within the given time frame, resulting in the closure of its right to file a response and proceeding ex parte.

### Observations by the National Commission

The Commission noted that, according to the agreement, possession was due within 42 months from the date of allotment, subject to force majeure. Goel provided evidence of significant payments made to the developer. The Commission ruled that the developer could not retain the money paid by Goel. Citing various Supreme Court cases such as Bangalore Development Authority Vs. Syndicate Bank and Fortune Infrastructure Vs. Trevor D’ Limba, the Commission reiterated that buyers cannot be made to wait indefinitely for possession and are entitled to a refund with interest. Although Goel also sought delayed compensation, the Supreme Court’s ruling in DLF Homes Panchkula Pvt. Ltd. Vs. D.S. Dhanda prohibits awarding compensation under multiple heads.

### Commission’s Decision

The National Commission partly allowed Goel’s complaint and ordered the developer to refund the amount paid by Goel with 9% annual interest, without any additional costs.

### Takeaway

This judgment underscores the importance of timely possession in property deals and affirms that developers cannot make buyers wait indefinitely. If you face similar delays, you have the right to seek a refund with interest.

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