{"id":196426,"date":"2018-05-25T17:02:02","date_gmt":"2018-05-25T11:32:02","guid":{"rendered":"http:\/\/www.scconline.com\/blog\/?p=196426"},"modified":"2018-05-30T12:20:13","modified_gmt":"2018-05-30T06:50:13","slug":"ncdrcs-pecuniary-jurisdiction-involves-consideration-plus-compensation-no-presumption-that-nris-purchase-property-to-sell-for-profit","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2018\/05\/25\/ncdrcs-pecuniary-jurisdiction-involves-consideration-plus-compensation-no-presumption-that-nris-purchase-property-to-sell-for-profit\/","title":{"rendered":"NCDRC\u2019s pecuniary jurisdiction involves consideration plus compensation; no presumption that NRIs purchase property to sell for profit"},"content":{"rendered":"<p style=\"text-align: justify;\"><strong>National Consumer Disputes Redressal Commission (NCDRC):<\/strong> The complainant is a Non-Resident Indian (\u201cNRI\u201d) residing in the USA. He booked a flat with the respondent which was duly allotted to him in August 2007. The agreement between the parties stated that the flat shall be delivered within three years of the allotment and a three-month grace period in case of force majeure subject to regular payment of instalments to the respondent. The flat booked was for a consideration of Rs. 98,13,760 of which Rs. 76,48,940 was paid by the complainant before he learnt that despite the expiry of the stipulated time period, no progress except a basic structure had been set up. He claimed a refund of deposited money with 18% interest. When the respondent failed to do so, the complainant approached the National Consumer Disputes Redressal Commission (\u201cNCDRC\u201d) claiming deficiency in service and unfair trade practices.<\/p>\n<p style=\"text-align: justify;\">The respondent made a three-pointed objection to the same:<\/p>\n<p style=\"text-align: justify;\">1. The NCDRC does not have pecuniary jurisdiction over this issue as it can only entertain complaints which involve a sum exceeding Rs. One crore.<\/p>\n<p style=\"text-align: justify;\">2. Since the complainant is an NRI, he would have no intention of residing in the said property and would only sell it further for profit, hence he does not qualify as a \u2018consumer\u2019.<\/p>\n<p style=\"text-align: justify;\">3. The delay in construction was due to force majeure as a stay order on the construction was passed by the High Court of Judicature at Hyderabad (\u201cthe High Court\u201d), an interim stay order by the Andhra Pradesh Waqf Tribunal (\u201cTribunal\u201d), and another order by the Tribunal restraining the respondent from alienating part of the property. These impediments could only be removed after an SLP filed in the Supreme Court vacated the stay and the construction was resumed.<\/p>\n<p style=\"text-align: justify;\">The NCDRC referred to its previous decision in Ambrish Kumar Shukla v. Ferrous Infrastructure Pvt. Ltd., 2016 SCC OnLine NCDRC 1117 where it was held that \u201c[I]t\u2019s the value of the goods or services and the compensation, if any, claimed which determines the pecuniary jurisdiction of the Consumer Forum.\u201d<\/p>\n<p style=\"text-align: justify;\">In the case at hand, the complainant had claimed a refund of the amount already deposited, i.e. Rs. 76,48,940 with 18% interest as compensation, which, in total, would amount to a sum above Rs\u00a0One crore and hence would fall within the pecuniary jurisdiction of the NCDRC under Section 21(a) of the Consumer Protection Act, 1986 (\u201cthe Act\u201d).<\/p>\n<p style=\"text-align: justify;\">The NCDRC also held that the Act makes no distinction between resident citizens of India and NRIs and the presumption that the complainant would only sell the fat for profit was not founded on any logic.<\/p>\n<p style=\"text-align: justify;\">With regard to the force majeure argument, the NCDRC observed that over six years had passed since the stay had been vacated and if the respondent actually had any intention of delivering the possession of the flat, he could have done so within two years from the date of the vacation of the stay. Since he did not do this, he cannot use the defence of force majeure to escape his liability for delay.<\/p>\n<p style=\"text-align: justify;\">The NCDRC also expressed disapproval towards clauses in the sale agreement which provided measly compensation in case of delay and no interest if the buyer himself cancelled the contract as these oppressive conditions would give undue advantage to the builder.\u00a0Hence the complaint was allowed and the respondent was direct to repay the amount advanced by the complainant with 10% interest. [Ram Balakrishnan v.\u00a0 Somitri Das, Consumer Case No. 236\/2011, decided on 24.05.2018]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>National Consumer Disputes Redressal Commission (NCDRC): The complainant is a Non-Resident Indian (\u201cNRI\u201d) residing in the USA. He booked a flat with <\/p>\n","protected":false},"author":91,"featured_media":199533,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3],"tags":[3095,30271],"class_list":["post-196426","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-casebriefs","tag-NCDRC","tag-pecuniary-jurisdiction"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.4 (Yoast SEO v26.4) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>NCDRC\u2019s pecuniary jurisdiction involves consideration plus compensation; no presumption that NRIs purchase property to sell for profit | SCC Times<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.scconline.com\/blog\/post\/2018\/05\/25\/ncdrcs-pecuniary-jurisdiction-involves-consideration-plus-compensation-no-presumption-that-nris-purchase-property-to-sell-for-profit\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"NCDRC\u2019s pecuniary jurisdiction involves consideration plus compensation; no presumption that NRIs purchase property to sell for profit\" \/>\n<meta property=\"og:description\" content=\"National Consumer Disputes Redressal Commission (NCDRC): The complainant is a Non-Resident Indian (\u201cNRI\u201d) residing in the USA. 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Kantikar (Presiding Member) and Binoy Kumar, Member, held that in view of catena of Supreme Court decisions\u2026","rel":"","context":"In &quot;Case Briefs&quot;","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":235380,"url":"https:\/\/www.scconline.com\/blog\/post\/2020\/09\/05\/ncdrc-to-determine-pecuniary-jurisdiction-of-district-commission-state-commission-or-national-commission-which-value-of-goods-or-services-has-to-be-considered-commission-elaborates\/","url_meta":{"origin":196426,"position":1},"title":"NCDRC | To determine pecuniary jurisdiction of District, State or National Commission which value of goods or services has to be considered? Commission elaborates","author":"Bhumika Indulia","date":"September 5, 2020","format":false,"excerpt":"National Consumer Disputes Redressal Commission (NCDRC):\u00a0A Division Bench of R.K. Agrawal (President) and Dr S.M. Kantikar (Member), held that \"...for detrmining the pecuniary jurisdiction of the District Commission, State Commission or National Commission the value of goods or services paid as consideration alone has to be taken and not the\u2026","rel":"","context":"In &quot;Case Briefs&quot;","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":247260,"url":"https:\/\/www.scconline.com\/blog\/post\/2021\/04\/17\/consumer-protection-act\/","url_meta":{"origin":196426,"position":2},"title":"NCDRC | Consumer Protection Act, 2019 provides for hierarchy of Consumer Fora to deal with consumer complaints, depending upon pecuniary value of complaint; Complaint filed to demand disproportionate compensation only to inflate value of complaint &#8212; Dismissed","author":"Bhumika Indulia","date":"April 17, 2021","format":false,"excerpt":"National Consumer Disputes Redressal Commission (NCDRC): C. Viswanath (Presiding Member) while addressing the complaint reiterated the settled position of law, expressed that, Section 58 of the Act provides that the National Commission shall have jurisdiction to entertain the Complaint where value of the goods or services paid as consideration exceeds\u2026","rel":"","context":"In &quot;Case Briefs&quot;","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":203429,"url":"https:\/\/www.scconline.com\/blog\/post\/2018\/10\/11\/complaints-involving-claim-value-of-less-than-rs-10000000-do-not-fall-under-the-jurisdiction-of-ncdrc\/","url_meta":{"origin":196426,"position":3},"title":"Complaints involving claim value of less than Rs. 1,00,00,000\/- do not fall under the jurisdiction of NCDRC","author":"Bhumika Indulia","date":"October 11, 2018","format":false,"excerpt":"National Consumer Disputes Redressal Commission (NCDRC): A Division Member Bench of Anup K Thakur, C. Viswanath, Members, dismissed a complaint at the stage of maintainability, which was filed for claiming deficiency of services on the part of the opposite party. The complainant had booked a residential apartment in one of\u2026","rel":"","context":"In &quot;Case Briefs&quot;","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":253179,"url":"https:\/\/www.scconline.com\/blog\/post\/2021\/08\/24\/refund-of-amount-from-builder\/","url_meta":{"origin":196426,"position":4},"title":"While seeking a refund of amount from builder, will he be liable to pay amount paid as EMIs towards loan sanctioned? Read detailed report on DSCDRC\u2019s decision","author":"Bhumika Indulia","date":"August 24, 2021","format":false,"excerpt":"Delhi State Consumer Disputes Redressal Commission (DSCDRC): Coram of Dr Justice Sangita Dhingra Sehgal (President) and Anil Srivastava (Member)ordered the builder to refund the money deposited by the complainant, as a consequence of not being able to deliver the possession of flat on time. However, it was held that the\u2026","rel":"","context":"In &quot;Case Briefs&quot;","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\/2021\/07\/MicrosoftTeams-image-25.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/07\/MicrosoftTeams-image-25.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/07\/MicrosoftTeams-image-25.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/07\/MicrosoftTeams-image-25.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/07\/MicrosoftTeams-image-25.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":301409,"url":"https:\/\/www.scconline.com\/blog\/post\/2023\/09\/14\/ncdrc-directs-developers-hand-over-possession-or-refund-sum-of-1-crore-home-buyer\/","url_meta":{"origin":196426,"position":5},"title":"NCDRC directs developers to hand over possession of flat or refund sum of 1 crore to a buyer","author":"Ridhi","date":"September 14, 2023","format":false,"excerpt":"NCDRC remarked that the argument of dissolution of joint venture agreement relieving obligations of one of the opposite parties was misconceived and could not be accepted.","rel":"","context":"In &quot;Case Briefs&quot;","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\/2023\/06\/national-consumer-disputes-redressal-commission.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/06\/national-consumer-disputes-redressal-commission.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/06\/national-consumer-disputes-redressal-commission.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/06\/national-consumer-disputes-redressal-commission.webp?resize=700%2C400&ssl=1 2x"},"classes":[]}],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/196426","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=196426"}],"version-history":[{"count":0,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/196426\/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=196426"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/categories?post=196426"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/tags?post=196426"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}