Realty firm penalised for deficiency in service

Tribune News Service

Chandigarh, December 12

The UT District Consumer Forum-I has ordered city-based construction company Emerging Valley to refund Rs 6, 07, 500 (along with annual interest of 9 per cent from the date of deposit i.e. May 30, 2012) to Panipat resident Balwinder Singh. The forum has also directed the company to pay Rs 60,000 to the complainant as compensation for deficiency in service and causing mental agony and harassment to him, along with Rs 15,000 as litigation expenses.

Over six years ago, Balwinder had booked a plot in the company’s project for Rs 20.25 lakh. He had paid an initial amount of Rs 6, 07, 500. A plot was allotted to him and he was assured possession till 2014. Having waited till, and with no indication of either the project coming up or the plot being delivered to him, Balwinder filed a complaint with the forum in December 2016. It was, however, mandatory for the builder, under the PAPRA Act, of having clear the title of the land. Notices were issued, but in vain.

The opposite party pleaded that as per the agreement, there was an arbitration clause, therefore, the forum could not hear or entertain the complaint. “ “We are not in agreement with the said contention. It is an additional remedy provided under the Consumer Protection Act. Even if there is an arbitration clause in the Act, the jurisdiction of this forum is not barred as it is not in derogation to any other remedy, neither the arbitration was resorted to nor any award was passed,” observed forum president Rattan Singh Thakur and member Suresh Kumar Sardana.