Team  SoOLEGAL

IT IS WRONG ON PART OF THE DEVELOPER TO MAKE THE BUYER WAIT INDEFINITELY FOR GETTING POSSESSION: Supreme Court

Team SoOLEGAL 29 Mar 2019 1:30pm

IT IS WRONG ON PART OF THE DEVELOPER TO MAKE THE BUYER WAIT INDEFINITELY FOR GETTING POSSESSION: Supreme Court

In the case of Kolkata West International City Pvt. Ltd., the developer in the year 2006 had received an amount of Rs. 39, 29,280 for possession of the Row House. The said property was supposed to be handed over to the buyer by 31 December 2008 with a grace period of a further six months.

Failing to get the possession, the buyer was left with no option but to approach the Consumer Commission in 2011 and seek possession. The alternative remedy advanced by him was to get the amount paid refunded with interest at 12% per annum, along with compensation of Rs 20 lakhs.

The developer was directed by the Commission to refund the money paid with an interest at 12% per annum and compensate the complainant with Rs 5 lakhs. But the National Commission modified the amount of compensation to Rs. 2 lakhs.

When the case was bought before the Apex Court of India, it opined that the purchaser cannot make the buyer wait indefinitely for getting the possession of any property.

The bench comprising of Justice DY Chandrachud and Justice Hemant Gupta had to answer the question that whether the buyer was entitled to seek a refund or was estopped from doing so, having claimed compensation as the primary relief in the consumer complaint.

The bench modified the order by holding that:

“Having regard to all the facts and circumstances of the case, we modify the order of the NCDRC by directing that the appellant shall pay interest at the rate of 9% per annum to the respondent instead and in place of 12% as directed by the NCDRC. Save and except for the above modification, we affirm the directions of the NCDRC.”

Tagged: SupremeCourt   Compensation  
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