Refund instead of possession of flat by developer due to delay

In the case of Experion Developers Pvt. Ltd V/s Sushma Ashok Shiroor, in civil Appeal No. 6044/2019, the supreme court has delivered a very pro consumer judgement, which will go a long way in securing the rights of the  Flat buyers from the Developers.

 

The facts of the case are as follows :-

 

That Mrs Sushma Ashok Shiroor booked a flat with Experion Developers Pvt Ltd, at Windchants, Sector 112, Gurgaon, Haryana at or for the total consideration of Rs. 2,36,15,726/- which was to be paid as per the payment plan. As per the Builder Purchaser agreement dated 26.12.2012, Possession was agreed to be given within 42 months  from the approval of the building plan.  In case of delay in possession then liquidated damages at Rs 7.50 per sq.mtrs per month was to be paid by the Developer to the buyer.

 

The consumer approached the National Disputes Redressal Commission as the Developer failed to hand over possession of the said flat even till filing of the complaint and for refund of the consideration amount paid by the consumer of Rs. 2,06,41,379/- together with interest of 24% p.a.  The Developer in contention in his written statement contended that the occupation certificate was received on 23.07.2018, and a notice of possession was given to the consumer of 24.07.2018, and therefore the Developer at most can give the interest on the delayed amount and not refund as claimed, also the Commission does not have power to direct refund of the amount paid.

 

The H’ble Supreme court held that the consumer court is just in directing refund of the amount paid together with 9% interest per annum, as the buyer cannot be kept at the mercy of the Developer for possession of the flat and if there is a delay on the part of the Developer then the Buyer has an option to cancel the Flat and claim refund of the money paid.

 

The H’ble Supreme court  further held that the commission has rights  exercised its power and jurisdiction in passing the directions for refund of the amount with interest.

 

Thus this case along with other cases decided on the same lines shall be helpful to the buyers of the flat

 

 

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