{"id":196174,"date":"2018-05-21T15:14:41","date_gmt":"2018-05-21T09:44:41","guid":{"rendered":"http:\/\/www.scconline.com\/blog\/?p=196174"},"modified":"2018-06-29T14:48:59","modified_gmt":"2018-06-29T09:18:59","slug":"ncdrc-person-who-has-paid-earnest-money-can-be-considered-consumer","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2018\/05\/21\/ncdrc-person-who-has-paid-earnest-money-can-be-considered-consumer\/","title":{"rendered":"NCDRC: Person who has paid earnest money can be considered \u2018consumer\u2019"},"content":{"rendered":"

National Consumer Disputes Redressal Commission (\u201cNCDRC): <\/strong>The NCDRC\u00a0has held that in transactions where a person has paid an advance amount to show goodwill and a sincere intention of completing the transaction by way of depositing earnest money, he can be considered a consumer.<\/p>\n

The appellant had applied to the respondent for allotment of a plot of land and had made an advance payment for the same. He communicated to the respondent a change in his address via to letters but no reply was received. He then sent an email which was acknowledged and a roof of the change was demanded. The appellant replied stating that he had provided the proof in the previous letters but there was again no reply from the respondent.<\/p>\n

The petitioner approached the district consumer forum which directed the respondent to allot said land to the appellant but the respondent challenged the district forum\u2019s pecuniary jurisdiction in the state commission which set aside the order. The appellant then approached the NCDRC which rejected his petition. The appellant then again petitioned to the state commission which rejected his application holding that he did not qualify as a \u2018consumer\u2019.<\/p>\n

The respondent contended before the district forum that the money deposited by the petitioner was adjusted as booking fees and he had failed to pay further amounts required to confirm the booking despite communications sent to his updated address.<\/p>\n

The petitioner drew the Commission\u2019s attention to Harminder Kaur, Mandeep Kaur v. Haryana Urban Development Authority, 2013 (4) CPJ 144 where the Commission had held that once money has been deposited by a person, he qualifies as a consumer and since the respondents had encashed the cheque drawn by the petitioner in their favour, he too qualifies as a consumer and the state commission was wrong in relying upon the case of Punjab Urban\u00a0Planning and Development Authority v. Krishan Pal Chander, 2010 (2) CLT 546, which dealt with different facts.<\/p>\n

The Commission perused the evidence and observed that though the builders did send a letter of allotment to the petitioner, they later cancelled it via another letter, but it was incorrect on part of the state commission to hold that this did not amount the petitioner\u2019s request for allotment turning into an actual allotment. Though the same was cancelled the payment of earnest money did make him a consumer, and the case at hand could not be equated to the Krishan Pal case where the matter involved deposition of merely registration amount and not earnest money.<\/p>\n

Hence the state commission\u2019s decision was set aside and it was directed to hear the matter again and decide as per law. [CS Grewal v. M\/s Taneja Developers and Infrastructure Ltd., FA No. 543\/2016, decided on 17-05-2018]<\/p>\n

\n","protected":false},"excerpt":{"rendered":"

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Jain, J., allowed an appeal filed against the order of the State Commission. The respondent was allotted a flat in a project which was to be developed by the appellant company. The respondent paid more than 50% of\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"National Consumer Disputes Redressal Commission","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":340505,"url":"https:\/\/www.scconline.com\/blog\/post\/2025\/02\/05\/one-sided-agreement-developer-buyer-bsp-refund-sc-legal-news\/","url_meta":{"origin":196174,"position":1},"title":"One-sided Developer-Buyer Agreement; SC refuses to interfere in NCDRC\u2019s order to refund amount in excess of 10% of BSP","author":"Sucheta","date":"February 5, 2025","format":false,"excerpt":"The Court reiterated that one-sided Agreements, as in the present case, would be covered by the definition of term \u201cunfair trade practice\u201d.","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"one-sided agreements","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/02\/one-sided-agreements.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/02\/one-sided-agreements.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/02\/one-sided-agreements.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/02\/one-sided-agreements.webp?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":262293,"url":"https:\/\/www.scconline.com\/blog\/post\/2022\/02\/23\/homebuyer-invests-his-hard-earned-money-to-get-legal-possession-of-flat-yet-gets-subjected-to-a-6-year-delay\/","url_meta":{"origin":196174,"position":2},"title":"Homebuyer invests his hard-earned money to get legal possession of flat, yet gets subjected to a 6-year delay: Read how NCDRC provided relief to consumer","author":"Bhumika Indulia","date":"February 23, 2022","format":false,"excerpt":"National Consumer Disputes Redressal Commission, New Delhi (NCDRC): While addressing a case wherein there was a delay of 6 years in handing over the possession to the buyer, the Coram of Dr S.M. Kantikar (Presiding Member) and Binoy Kumar, Member, held that in view of catena of Supreme Court decisions\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"National Consumer Disputes Redressal Commission","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":277719,"url":"https:\/\/www.scconline.com\/blog\/post\/2022\/11\/18\/supreme-court-set-aside-the-order-of-ncdrc-reducing-lakhs-of-compensation-granted-by-the-state-commission-to-rupees-10000-legal-research-legal-news-updates\/","url_meta":{"origin":196174,"position":3},"title":"Supreme Court sets aside NCDRC’s judgment reducing almost Rs. 14 Lakhs of compensation granted by State Commission to Rs. 10,000","author":"Editor","date":"November 18, 2022","format":false,"excerpt":"\u00a0 \u00a0 Supreme Court: In an appeal filed against the judgment passed by the National Consumer Disputes Redressal Commission (\u2018NCDRC\u2019), wherein the amount of compensation has reduced to Rs. 10,000\/- as against the amount of Rs. 13,79,901\/- granted by the State Commission to be paid to the appellant, division bench\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/11\/MicrosoftTeams-image21-1.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/11\/MicrosoftTeams-image21-1.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/11\/MicrosoftTeams-image21-1.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/11\/MicrosoftTeams-image21-1.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/11\/MicrosoftTeams-image21-1.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":205377,"url":"https:\/\/www.scconline.com\/blog\/post\/2018\/11\/16\/unscrupulous-builders-should-not-be-allowed-to-fool-innocent-consumers-ncdrc\/","url_meta":{"origin":196174,"position":4},"title":"Unscrupulous builders should not be allowed to fool innocent consumers: NCDRC \u00a0","author":"Bhumika Indulia","date":"November 16, 2018","format":false,"excerpt":"National Consumer Disputes Redressal Commission (NCDRC): A Division Member Bench of S.M. Kantikar (Presiding Member) and\u00a0 Dinesh Singh (Member), dismissed a revision petition filed against the order of Haryana State Consumer Disputes Redressal Commission, whereby the order of the district forum was affirmed. The main issue that arose before the\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"National Consumer Disputes Redressal Commission","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":237728,"url":"https:\/\/www.scconline.com\/blog\/post\/2020\/10\/20\/ncdrc-builder-has-to-mention-the-date-of-delivery-of-possession-in-agreement-homebuyer-cannot-be-made-to-wait-for-possession-indefinietly\/","url_meta":{"origin":196174,"position":5},"title":"NCDRC | Builder has to mention the date of delivery of possession in agreement & failure to do so will be read against builder; Homebuyer cannot be made to wait for possession indefinitely","author":"Bhumika Indulia","date":"October 20, 2020","format":false,"excerpt":"National Consumer Disputes Redressal Commission (NCDRC):\u00a0\u00a0A Division Bench of Dr S.M. Kantikar (Presiding Member) and Dinesh Singh (Member) held that, a homebuyer cannot be made to wait indefinitely for possession. The instant appeal was preferred by the appellant under Section 19 of the Consumer Protection Act, 1986 against the Order\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"National Consumer Disputes Redressal Commission","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]}],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/196174","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/users\/91"}],"replies":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/comments?post=196174"}],"version-history":[{"count":0,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/196174\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media\/199533"}],"wp:attachment":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media?parent=196174"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/categories?post=196174"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/tags?post=196174"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}