National Consumer Disputes Redressal Commission Allows Consumer Complaint Against Builder for Delayed Possession and Failure to Obtain Occupation Certificate -- Opp. Parties Project Found Deficient in Service Under Consumer Protection Act

Sub Category: National Consumer Disputes Redressal Commission Bench: NEW DELHI
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Case Note & Summary

The National Consumer Disputes Redressal Commission disposed of two consumer complaints filed by complainants against Opp. Parties. The Complainants had booked an apartment in 2008 with possession promised by December 2011, but the Builder delivered physical possession only in October 2015 without obtaining the mandatory Occupation Certificate. The Commission found deficiency in service, unfair trade practices, and violation of statutory requirements. The Builder was directed to obtain Occupation Certificate within three months, pay interest at 9% per annum on amounts paid for the delayed period, refund unauthorized parking charges of Rs. 1,75,000 with 9% interest, refund area enhancement charges of Rs. 3,82,031, and pay Rs. 2,00,000 as compensation for mental agony. The complaints were allowed with these directions.

Headnote

The National Consumer Disputes Redressal Commission (NCDRC) -- Heard complaints filed under Section 21(a)(i) of the Consumer Protection Act, 1986 (the Act) -- The Complainants had booked an apartment in 'Hamilton Heights' project in Faridabad -- The Builder was to deliver possession by December 2011 but handed over physical possession only in October 2015 -- The Builder failed to obtain Occupation Certificate from Director, Town and Country Planning (DTCP) -- The Commission held that delay in possession and failure to obtain statutory permissions constituted deficiency in service -- Directed the Builder to obtain Occupation Certificate within three months -- Awarded compensation for delayed possession at 9% interest per annum from promised date to actual possession date -- Ordered refund of unauthorized parking charges and area enhancement charges -- The Builder was also directed to pay Rs. 2,00,000 as compensation for mental agony and harassment

Issue of Consideration: The Issue of Consideration was whether the builder's failure to deliver possession within agreed timeframe and obtain Occupation Certificate constituted deficiency in service under the Consumer Protection Act, 1986

Final Decision

The Commission allowed the complaints -- Directed the Builder to obtain Occupation Certificate within three months -- Awarded interest at 9% per annum on amounts paid from promised possession date (December 2011) to actual possession date (October 2015) -- Ordered refund of Rs. 1,75,000 parking charges with 9% interest from receipt date -- Ordered refund of Rs. 3,82,031 area enhancement charges -- Directed payment of Rs. 2,00,000 as compensation for mental agony and harassment -- All reliefs granted as prayed for except interest rate reduced from 12% to 9%

 

2025 LawText (NCDRC) (01) 59

Consumer Case No. 1852 of 2017, Consumer Case No. 1853 of 2017

2025-01-23

HON'BLE MR. SUBHASH CHANDRA,PRESIDING MEMBER HON'BLE AVM J. RAJENDRA, AVSM VSM (Retd.),MEMBER

Mr. Aditya Parolia, Ms. Ishita Singh, Mr. Pranjal Mishra, Ms. Anvita Priyadarshi, Mr. Brijesh Chaudhary, Mr. Prins Kumar, Mr. Yashish Samkria

Lalita Tanwar, Yogendra Singh Tanwar

Hamilton Heights Pvt. Ltd., Espire Infrastructure Corporation Ltd.

Nature of Litigation: Consumer complaint alleging deficiency in service by builder in real estate project

Remedy Sought

Complainants seeking legal possession with Occupation Certificate, compensation for delayed possession, refund of unauthorized charges, and damages

Filing Reason

Builder failed to deliver possession within agreed timeframe and obtain mandatory Occupation Certificate

Previous Decisions

No previous decisions mentioned in the judgment

Issues

Whether the Builder's delay in delivering possession constituted deficiency in service under Consumer Protection Act, 1986 Whether failure to obtain Occupation Certificate rendered possession illegal and constituted unfair trade practice Whether the Builder could charge additional amounts for area enhancement and parking without consent

Submissions/Arguments

Complainants argued that delay of nearly four years in possession caused financial loss and mental agony Complainants contended that possession without Occupation Certificate was illegal under Town and Country Planning regulations Builder argued that possession was delivered and Complainants were occupying the apartment Builder contended that charges for area enhancement and parking were justified

Ratio Decidendi

Delay in delivering possession of booked apartment constitutes deficiency in service under Consumer Protection Act, 1986 -- Possession without Occupation Certificate is not legal possession and violates statutory requirements -- Builders cannot unilaterally increase area or charge for parking without consent -- Consumers entitled to compensation for mental agony and financial loss due to builder's defaults

Judgment Excerpts

This complaint filed under Section 21 (a) (i) of the Consumer Protection Act, 1986 alleges deficiency in service by the Opposite Party in delay in handing over possession The Opposite Party failed to fulfil this obligation and delivered physical possession only in October 2015, after an inordinate delay of nearly four years The Complainants have alleged that legal possession has yet to be handed over, as the Opposite Party failed to obtain the requisite Occupation Certificate The delay on part of the Opposite Party has caused significant financial loss, mental agony, and harassment to them

Procedural History

Complaints filed under Consumer Protection Act, 1986 -- Notice issued to Opposite Party -- Opposite Party filed written statement -- Complainants filed rejoinder -- Parties filed evidence by way of affidavit -- Arguments heard -- Common order passed for both cases

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