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February 2013

Consumer complaint – Builder – Flat sold to other person – Builder to return the amount with interest @ 15% and pay cost: Consumer Protection Act.

By Dr. K. Shivaram, Ajay R. Singh, Advocates
Reading Time 2 mins
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Consumer Welfare Association vs. Trimurti Developers & Builders Complaint Case No. CC/12/89, dated 12-12-2012 (Maharashtra) (State Consumer Disputes Redressal Commission.)

Complainant was a flat purchaser and the complainant had booked a flat with the Opponent by agreement dated 20-4-2005. As per the said agreement, flat no.B-203 admeasuring 1100 sq.ft. super built up area on the second floor of the building Palm Towers Co-op. Hsg. Society was agreed to be sold to the Complainant. However, the said flat was sold by the Opponent after construction and possession of the said flat was not given. In respect of the said flat, the complainant had paid an amount of Rs. 19,80,000/-. However, since the flat was not delivered, there was subsequent MOU between the parties dated 5-9-2011. By the said MOU, earlier agreement was cancelled by the Opponent and the Opponent agreed to pay an amount of Rs. 30 lakh to the Complainant. The said amount was to be paid by three installments to be paid on 5-9-2011, 15-10-2011 and 25-12-2011. Out of this Rs. 30 lakh, an amount of Rs. 10 lakh was paid on 5-9-2011 and since the remaining amount had not been paid, the complaint was filed.

It was held that in view of the MOU executed between the parties, the Opponents was under obligation to return the amount as agreed. Since the amount had not been returned, the Opponents were also liable to pay interest on the said amount. Not only that, but since the flat had been sold to another person, naturally, he must have obtained price higher than the price which was agreed between the Complainant and the Opponent. The prayer in respect of allotment of the flat was not allowed in view of the fact that the Complainant had not pressed for the said prayer.

The complaint was allowed and the Opponent was directed to pay the balance amount of Rs.20 lakh with interest @ 15% p.a. from 25-12-2011 onwards till the actual realisation of the amount. By way of costs of the complaint, the Opponent was directed to pay Rs. 25,000/- to the Complainant.

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