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Judgment
Heard Mr. P.N.Puri, Advocate, for the complainants, Mr. Prabhakar Tiwari, Advocate, for opposite parties-1 to 3 and Ms. Rachana Joshi Issar, Advocate, for opposite parties-4 to 6.
Navneet Samra and Gagan Samra (the complainants) have filed above complaint for directing the opposite parties jointly and severally (i) to refund the amount of Rs.11346250/-, along with interest @12% per annum, (ii) to pay compensation of Rs.21/- lacs for deficiency in service and negligence along with litigation cost.
Parsvnath Developers Limited and others (opposite party-1) (hereinafter referred to as the builder) entered into an Agreement with Chandigarh Housing Board (opposite party-3) on 06.10.2006, for development of residential, commercial and other related infrastructure facilities as an integrated project over 123.79 acre land located in Rajeev Gandhi Chandigarh Technology Park, Chandigarh. Pursuant to which, the builder launched a group housing project in the name of “Parsvnath Pride Asia”, in the year 2007 and invited allotment applications for various categories of flats from general public, opening from 02.09.2007 and closing on 21.09.2007. The complainants applied for Category-C Flat (tentative super area 3000 sq.ft., basic sale price of Rs.20850000/-) and deposited Rs.1042000/- on 19.09.2007. The complainants opted for “Construction Linked Payment Plan”. As per clause-9 of the Application Form, possession of the flat, complete in all respect had to be handed over within 36 months. As per demand, the complainants deposited Rs.1043000/- on 11.10.2007, Rs.3527500/- on 14.11.2007, Rs.2866875/-on 01.01.2008 and Rs.2866875/- on 25.04.2008 (total Rs.11346250). Flat Buyer Agreement, which was a tripartite agreement was executed between the parties on 25.01.2008. Thereafter, no demand was made. The complainants inquired about the various facts relating to the project on 19.05.2009, then a reply dated 19.06.2009 was given. The complainants again inquired about the progress of the project on 01.04.2010, then a reply dated 13.05.2010 was given that the dispute between the builder and Chandigarh Housing Board has been referred to an Arbitrator and due to the dispute, the construction was not started. When the construction was not started then the complainants wrote letters dated 07.07.2009 and 21.09.2009 and requested for refund of his money along with interest but no reply was given. Then this complaint was filed on 10.12.2010, alleging deficiency in service.
The builder filed their written reply on 01.11.2011, in which, it has been stated that the Administrator, Union Territory Chandigarh, vide order dated 15.11.2005, directed for transfer of 135 acres land for development of Rajiv Gandhi Technology Park at village Kishangarh, Chandigarh and designated Chandigarh Housing Board as Nodal Agency, for executing the said project. A team of the officers of State of Haryana and Union Territory Chandigarh jointly conducted the proceeding for demarcation of the aforesaid land on the spot on 04.12.2005 and laid down boundary line. Thereafter, Chandigarh Housing Board gave advertisement dated 24.01.2006, inviting tenders for participation of private sectors, in development of the project. A pre-bid conference was held on 28.03.2006, for the purposes of clarifying the issues and doubts. After, taking revised bids, the bids were opened on 09.06.2006, in which, the bid of the builder was approved and Letter of Acceptance was issued. The builder submitted performance guarantee of Rs.100 crores and Development Agreement was executed on 06.10.2006. Then the land measuring 123.79 acres was handed over the builder. On the spot, High Tension Electricity line was existed through the land. The builder requested for removal of High Tension Electricity line. However, later on it was noticed that the land was not free from all encumbrances and boundary dispute between State of Haryana and Union Territory Chandigarh was not final. Due to which Master Layout Plan, Zoning Plan, Drawing and Design were not approved timely. Due to which, the builder could not start development activities on the spot. Ultimately the dispute was referred to an Arbitral Tribunal to resolve the dispute and the matter was still pending before the Arbitral Tribunal.
Chandigarh Housing Board filed its written reply on 28.01.2012, in similar terms of the reply of the builder and also stated that as per the Flat Buyer Agreement, the builder was responsible for the buyers.
During pendency of the complaint, the Arbitral Tribunal passed award dated 09.01.2015, in which, it has been held that the builder and Chandigarh Housing Board both were liable to refund the advances collected from the buyers, interest and compensation in the ratio of 70%:30%, respectively as the project was abandoned due to dispute.
A bunch of several First Appeals and Consumer Complaints (leading case was First Appeal No. 269 of 2012) filed by the various buyers in this project, for refund of the money deposited by them were allowed by this Commission, directing the builder and Chandigarh Housing Board to refund the amount along with interest @9% per annum, vide judgment dated 05.03.2013. These judgments were challenged in Special Leave Petition (C) Nos.17133-17134 of 2013 and other connected Special Leave Petitions, which were dismissed by a three Judges Bench of Supreme Court, by judgment dated 21.04.2016. Another Bench of two Judges of Supreme Court dismissed Civil Appeal No.10748 of 2016, Chandigarh Housing Board Vs. M/s. Parsvnath Developers Private Ltd. and others and upheld award of interest @10% per annum, by judgment dated 17.12.2019.
Chandigarh Housing Board (opposite party-4) refunded Rs.3403875/- (i.e. 30% of the principal amount), Rs.161883/-, towards interest @9% per annum and Rs.651192/- as compensation for delayed possession on 05.10.2015 to the complainants. The builder (opposite parties-1 to 3) paid Rs.35/-lacs on 27.04.2018, Rs.25/- lacs on 28.07.2018 and Rs.5/- lacs on 13.12.2018 to the complainants.
The complainants claim interest @10% per annum, as approved by Supreme Court in Civil Appeal No.10748 of 2016, Chandigarh Housing Board Vs. M/s. Parsvnath Developers Private Ltd and others and the compensation under Clause-9-C of Flat Buyer Agreement.
We have considered the arguments of the counsel for the parties and examined the record. A three Judges Bench of Supreme Court, in judgment dated 21.04.2016, passed in Special Leave Petition (C) Nos.17133-17134 of 2013, (and other connected cases, arising out of same project) has approved the order of this Commission, awarding interest @9% per annum. Apart from it, Supreme Court in Kolkata West International Pvt. Ltd. Vs. Deashish Rudra, II (2019) CPJ 29 (SC), Arifur Rehman Khan (Wg.Comdr.) Vs. DLF Southern Homes Pvt. Ltd., (2020) 16 SCC 512 and Ireo Grace Realtech Pvt. Ltd. Vs. Abhishek Khanna, (2021) 3 SCC 241 , after taking notice of market rate has held that award of interest @9% per annum, is appropriate compensation, in the cases of refund of money, from the builders. As such, we direct for refund of principal amount along with interest @9% per annum. So far as compensation under Clause-9-C of Flat Buyer Agreement, is concerned as the project was abandoned, due to land dispute as such delayed compensation is not payable.
ORDER
In view of aforesaid discussions the complaint is partly allowed. The opposite parties-1 to 3 are directed to refund the balance principal money of 70% of their share and interest @9% per annum, on 70% of the amount deposited by the complainants from the date of each deposit till its actual payment. This order shall be complied with within period of two months from the date of this judgment.