Monday, 30 September 2013

National Consumer Commission 2013 Judgment on Apartment Possession

FORUM: NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION

CASE NUMBER: CONSUMER COMPLAINT No. 242 OF 2011

TITLE: KARTAR SINGH KOCHHAR Vs VATIKA LIMITED

JUDGMENT DATE: 11.01.2013


PERSONAL INTERPRETATIONS TO THE BEST OF UNDERSTANDING:


1. The consumer must first pay all due installments and registration charges to seek possession & must seek remedy (relief) only if he/she refused possession even after full payment. (Approach with clean hands)

2. No delay interest / compensation was granted as the price of flats have gone up leaps & bounds.

3. If the consumer does not pay the balance installments to get possession, the developer (builder) is at liberty to return the purchase price with 9% interest.

4. Even after receipt of the entire consideration and registration charges, the developer (builder) would put the consumer in possession of the apartment, within a week failing which, he would pay compensation of Rs.10,000/- per day.

5. The limitation will continue till the consumer gets possession

6. Even though the compensation demanded was Rs.20 lakhs, however, after considering the total amount already invested over and above the compensation demanded, the court ruled no issue with jurisdiction. (PS: For National Commission jurisdiction is 1 crore). As a matter of fact, if option of refund by developer (builder) is to be exercised / ordered, the total sum would exceed 1 crore, thereby justifying the jurisdiction.

PS: Above are personal interpretations. Extracts from Original text of judgment, reproduced below for reference & independent interpretations. Link to full judgment also provided.

RELEVANT EXTRACTS:



FAILURE TO PAY INSTALLMENTS

"The complainant himself waddled out of his commitments. He wants to have the benefit of both the worlds. He wants the delivery of possession without paying the entire amount. He has made a vain attempt to make bricks without straw. He has failed to pay the installment despite service of notice. His intention is to delay the recovery of possession on one pretext or the other. It is well said, “Time was when philosophers said that the rights and duties of the citizens were actually two-sides of same coin and you cannot demand your rights without performing your duty”. The complainant should have paid the last installment and registration charges instead of coming to this Commission. The necessity of this case being filed would have arisen when after full payment the opposite party had refused to hand over the possession."

NO INTEREST OR COMPENSATION

"Under the circumstances, no interest or compensation can be granted to the complainant because the prices of flats have gone up by leaps and bounds. He has not been asked to pay the escalation charges." 

LIBERTY TO RETURN PURCHASE PRICE WITH INTEREST 

"It is therefore ordered that the petitioner will deposit the last installment and registration charges within 90 days from today failing which the respondent will be at liberty to return the purchase price alongwith interest @9% p.a. from the date of that deposit till their realization and as has been agreed by the counsel for the Opposite party. After receipt of the entire consideration and registration charges, the opposite party would put the complainant in possession of the apartment, within a week failing which, he would pay compensation of Rs.10,000/- per day."

LIMITATION

"The complaint is not barred by time because the period of limitation will continue till the petitioner gets the possession."

JURISIDICTION

"Moreover, it cannot be said that this court has got no jurisdiction. The complainant has already incurred a sum of Rs.1,24,71,624/-. and has further demanded compensation in the sum of Rs.20 lakhs. The total amount comes to more than Rs.1.50 crore approximately. By no stretch of imagination, it can be said that this Commission has no jurisdiction to try this case."

FULL JUDGEMENT LINK

http://164.100.72.12/ncdrcrep/judgement/00130220123419276CC24211.htm




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