New Delhi: The Supreme Court on Monday upheld an order passed by the National Consumer Disputes Redressal Commission (NCDRC) directing a real estate developer to refund the entire amount paid by the home buyers for delayed possession of their flat, saying they were made to suffer for long, for no fault of theirs.
A bench led by Justice B R Gavai said: "Undisputedly, the facts of the case show that the project was delayed inordinately. The complainants-appellants were made to suffer for long, for no fault of theirs. In spite of making the entire payment, they were deprived of the possession within the stipulated time".
The bench, also comprising Justice Sandeep Mehta, enhanced the rate of interest from 9 per cent awarded by the NCDRC to 12 per cent from the date of respective deposit till the date of refund. The bench said NCDRC, at least, ought to have awarded interest at the rate of 12 per cent per annum in view of clause 7(b) of the agreement.
The top court said that the commission rightly directed the respondent-developer to refund the entire amount deposited by the complainants-appellants. "In the result, the appeal is partly allowed. The direction made by the commission for refund of the entire amount deposited by the complainants-appellants is upheld… The unpaid amount in terms of the aforesaid shall be paid within a period of three months from the date of this judgment," the bench said.
Jayant Muth Raj, senior counsel appearing on behalf of the respondent-developer submitted that the delay in completion of the project was not deliberate. He submitted that, since there was a delay in sanctioning of the plans by the Delhi Development Authority, the project could not be completed. It was submitted that the case was duly covered under the force majeure clause and as such, interest even at the rate of 9% was not liable to be imposed upon the respondent-developer.
The home buyers moved the apex court against the September 29, 2022 order of the NCDRC by which it has partly allowed the complaint and directed the respondent, M/s Parsvnath Developers Limited, to refund the amount with interest at the rate of 9 per cent per annum from the date of respective deposit till the date of refund.
Sanjay Jain, counsel appearing on behalf of the complainants-appellants, submitted that the commission erred in awarding the interest only at the rate of 9% per annum. He submitted that the agreement provided that, in case there is a delay in payment by the flat purchaser, the respondent-developer was entitled to condone the same by charging interest at the rate of 24% per annum of the amount in default.
The agreement provided that, in case of delay in the completion of the project by the respondent-developer, it was liable to pay interest only at the rate of 12% per annum. It was submitted that there is no logic in making the flat purchaser liable for payment of interest at the rate of 24% per annum whereas the respondent-Developer was liable to pay interest only at the rate of 12% per annum.
According to the complaint, the developer in 2008 launched a group housing project called 'Parsvnath Paramount' at Subhash Nagar here. The appellants booked a 3BHK flat in the project and paid around Rs 16 lakh as the initial amount on July 15, 2008, with the rest amount as per the payment plan. The construction of the flat, as per the flat-buyer agreement, would have been completed within a period of 30 months of the commencement of construction of the particular tower in which the flat was located, with a further grace period of six months. Aggrieved by delayed possession, the home buyers moved the NCDRC.
