Case Note & Summary
The Supreme Court dismissed appeals by flat buyers seeking to hold landowners jointly and severally liable with the developer for delay in handing over possession of flats. The Court upheld the National Consumer Disputes Redressal Commission's orders, which found deficiency in service by the developer but exonerated landowners based on the Joint Development Agreement and General Power of Attorney terms. The Court held that the agreement placed construction and delivery obligations solely on the developer, with indemnity clauses protecting landowners, and no principal-agent relationship existed. The Court affirmed the direction for title transfer and sale deed execution but rejected enhanced compensation claims.
Headnote
The Supreme Court dismissed appeals filed under Section 67 of the Consumer Protection Act, 2019, challenging the National Consumer Disputes Redressal Commission's orders dated 30.07.2024 and 19.10.2023 -- The Court held that landowners are not jointly and severally liable with the developer for deficiency in service, as the Joint Development Agreement and General Power of Attorney did not establish a principal-agent relationship -- The Court emphasized that liability for construction and delivery of flats rested solely with the developer under the agreement terms -- The Court upheld the Commission's direction for landowners and developer to transfer title and execute sale deeds in favor of appellants -- The Court referenced decisions in Syed Abdul Khader v. Rami Reddy & Ors., (1979) 2 SCC 601, and other cases, but found them inapplicable to the facts of this case
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Issue of Consideration: Whether landowners are jointly and severally liable with the developer for deficiency in service and compensation under the Consumer Protection Act, 2019, based on the Joint Development Agreement and General Power of Attorney
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Final Decision
The Supreme Court dismissed the appeals, upholding the National Consumer Disputes Redressal Commission's orders dated 30.07.2024 and 19.10.2023. The Court held that landowners are not jointly and severally liable with the developer for deficiency in service, as the Joint Development Agreement and General Power of Attorney did not establish a principal-agent relationship, and liability for construction and delivery was solely on the developer. The Court affirmed the direction for landowners and developer to transfer title and execute sale deeds in favor of appellants.
