NCDRC | Developer directed to give compensation in view of “Principles of Natural Justice”; delay of 4 years in refund of ‘booking amount’ on cancellation

National Consumer Disputes Redressal Commission (NCDRC): The Bench comprising of Justice R.K. Agrawal (President) and M. Shreesha (Member) while addressing a complaint with respect to “deficiency of services” by the developer granted compensation keeping in view of the “Principles of Natural Justice”.

In the present case, aggrieved preferred the first appeal against the order passed by the Maharashtra State Consumer Disputes Redressal Commission, Mumbai under Section 19 of the Consumer Protection Act, 1986.

Complainant stated that there was a deficiency of service against the Developer since an amount of Rs 37, 00,000 was paid towards sale consideration for Flat No. 601 situated at Vijaya and on account of non-providing of certain amenities the Complainant cancelled the booking and sought for a refund of the amount paid. Despite the complainant having requested for interest several times as the Developer had retained her amount from 14-05-2010 till 31-01-2011, there was no response.

State Commission allowed the complainant in part with the aforenoted directions.

According to the respondent’s, though the ‘developer’ had offered the payment of the amount, the complainant refused the same as her stand was that since the ‘developer’ had taken the money, the ‘developer’ alone should come to her doorstep and handover the money. Though, the Complainant stated that the amount was never offered to her.

Appellant submitted that some amount of compensation was to be awarded to meet the ends of justice as the compensation amount awarded by the State Commission was paid subsequently after 5 years.

Reliance was placed on Ghaziabad Development Authority v. Balbir Singh, (2004) 5 SCC 65, wherein the Court discussed the grounds on which the compensation be awarded in matters of delayed possession.

In the present matter, interest @18% has been awarded by the State Commission. The fact that the respondents did not challenge the impugned order, but also complied with the order only after 4 years, the order dated 12-05-2012 and as per the submission of the appellant/complainant the cheque was handed over on 3-05-2016.

Thus, keeping in view the “Principles of Natural Justice”, Commission awarded Rs 75,000 towards compensation within 4 weeks. The appeal is allowed in part with aforenoted directions. [Leela Narasimhan v. Vijay Grihanirman (P) Ltd., 2019 SCC OnLine NCDRC 328, decided on 16-10-2019]

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