NEW DELHI: The Supreme Court has modified the National Consumer Disputes Redressal Commission's order directing a real estate developer to refund the entire amount paid by the home buyers but with enhanced interest for delayed possession of their flat, as they were made to suffer for long, for no fault of theirs.
"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," a bench of Justices B R Gavai and Sandeep Mehta said.
The court directed Parsvnath Developers Ltd to pay enhanced 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 court felt the 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 builder buyers agreement.
Also Read: Awarding interest is on the discretion of the arbitrator: Delhi High Court [Read Order]
In the case, the bench said that the commission rightly directed the respondent-developer to refund the entire amount deposited by the complainants-appellants.
The court partly allowed a plea by complainant Vidya and others, who deposited money for a flat at Subhash Nagar in Delhi.
The developer, on its part, contended that the delay in completion of the project was not deliberate.
It said since there was a delay in sanctioning of the plans by the Delhi Development Authority, the project could not be completed.
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, it contended.
The court, however, said this contention on force majeure is without substance, in view of previous judgment in DLF Home Developers Limited (earlier known as DLF Universal Limited) and Another Vs Capital Greens Flat Buyers Association and Others (2021).
The flat buyers filed a plea in the Supreme Court against the September 29, 2022 order of the NCDRC.
They argued that the Commission erred in awarding the interest only at the rate of 9% per annum. 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.
However, 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.
"Therefore, 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," their counsel said.
The developer launched a group housing project called 'Parsvnath Paramount' at Subhash Nagar here in 2008. The complainants paid a total sum of Rs 1,30,62,971 in the intervening period between July 15, 2008 and December 21, 2013.
Much to their surprise, the developer unilaterally transferred the said Flat No 301 situated in Tower 3, which had been initially allotted to the complainants-appellants, to Flat No 702 situated in Tower 2, admeasuring 1942 sq ft in April, 2011.
In the interregnum, the period of 36 months set out in the agreement, including the grace period of 6 months, had expired.
As the respondent-Developer failed to handover the possession of the flat within the expected deadline, despite timely payments, and several reminders, the complainants initiated the legal position by filing a plea before the NCDRC.
[Read Judgment]
