Consumer Dispute Over Delayed Possession of Residential Flats – Supreme Court Ruling

The case between CCI Projects (P) Ltd. and Vrajendra Jogjivandas Thakkar involved a dispute regarding the delayed possession of residential flats. The appeals were filed under Section 23 of the Consumer Protection Act, 1986, against the National Consumer Disputes Redressal Commission’s order.

Background of the Case

Vrajendra Thakkar had booked a flat in the ‘White Spring Building’ project in Mumbai, with possession promised by August 2014. However, the possession was not delivered on time, leading to the complaint. The agreement included a clause that extended the possession deadline in cases such as non-availability of construction materials, government regulations, or changes in laws.

Legal Issues Raised

• Whether the delay in possession was justified under the agreement clauses.
• Whether the complainants were entitled to compensation for the delay.
• Whether the transfer of ownership within the family affected the complaint’s maintainability.

Petitioner’s Arguments

The builder contended that the delay was due to unavoidable circumstances, including regulatory approvals and environmental restrictions. It was also argued that the original allottees had transferred their interest, making the complaints non-maintainable.

Respondent’s Arguments

The respondents argued that the transfers were within the family and did not impact their right to claim compensation. They also contended that the builder failed to prove the alleged difficulties.

Supreme Court’s Findings

The Court ruled that:

• The delay caused by regulatory approvals justified a six-month extension.
• The remaining delay of one year and eight months was not justified.
• The Commission’s order of 8% interest on the deposited sum was revised to a lump sum compensation of Rs.5 lakhs.

Final Judgment

The Supreme Court directed the builder to pay Rs.5 lakhs per complainant within two months. Failure to comply would result in 8% interest on the compensation amount.

The ruling clarifies consumer rights in real estate transactions and emphasizes the importance of timely possession as per contractual agreements.

Petitioner Name: CCI Projects (P) Ltd..
Respondent Name: Vrajendra Jogjivandas Thakkar.
Judgment By: Justice Uday Umesh Lalit, Justice R. Subhash Reddy.
Place Of Incident: Mumbai.
Judgment Date: 27-11-2018.

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Download Judgment: CCI Projects (P) Ltd vs Vrajendra Jogjivanda Supreme Court of India Judgment Dated 27-11-2018.pdf