Consumer Disputes Redressal Commission rejects builder’s plea, orders refund of Rs23 lakh to elderly womanLockdown no excuse for delay in housing project

Ramkrishan Upadhyay

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Tribune News Service

Chandigarh, November 23

Lock down due to Covid 19 and a shortage of construction material are no excuses for not giving the possession of the flat to a consumer on time.

While rejecting all excuses for the delay in completion of the project by a Mohali-based builder, the State Consumer Disputes Redressal Commission, Chandigarh, directed the builder to refund the entire paid amount of Rs 23,12,500 to the consumer with interest.

The commission also directed the builder to pay a compensation for causing mental agony and physical harassment, for deficiency in providing service, adoption of unfair trade practice and also for cost of litigation in a lump sum of Rs 50,000 to the complainant,

Sukhwant Bhatia (70) approached the commission after the builder failed to deliver the flat on time. In the complaint filed before the commission, she said she booked a residential plot measuring 250 sq yd on May 17, 2012, in a mega housing project, known as Palm Garden, Mullanpur, Punjab. The total price of the plot was fixed at Rs 46,25,000.

She said despite the fact that a substantial amount Rs 23,12,500 had been paid to the opposite party (real estate firm), as per demands raised by them from time to time, yet they neither allotted the plot nor executed the buyer’s agreement. Nor did they offer possession thereof, for want of development activities at the project site. She alleged that the project was launched without obtaining necessary approvals/sanctions from the competent authorities. When neither plot number was allotted to the complainant nor the buyer’s agreement executed between the parties; she stopped making further payments to the opposite party and sought a refund of the amount.

The opposite party denied all allegations and claimed that the delay in delivery of possession of the plot was on account of a shortage of building material, the ban on mining imposed by the government concerned, and also the Covid-19 lockdown.

After hearing the arguments, the commission noted that nothing was placed on record to prove the claims. As far as plea taken with regard to Covid-19, it may be stated here that the said pandemic took place in India in March 2020 when the lockdown was executed. However, the lockdown has no relation whatsoever with the inordinate delay in the matter, as the plot had been purchased by the complainant in 2012. Also, as per the settled principle of law laid down by the Supreme Court of India, in the cases where no agreement has been executed by the builder after the booking of the plot/unit, then the reasonable period of two to three years has to be taken into account for completion of the construction and development activities and delivery of possession to the allottees/buyers thereof.