{"id":224458,"date":"2020-01-23T13:07:42","date_gmt":"2020-01-23T07:37:42","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=224458"},"modified":"2020-01-23T13:07:42","modified_gmt":"2020-01-23T07:37:42","slug":"ncdrc-paltry-compensation-not-an-adequate-redressal-to-allottee-as-it-creates-no-pressure-created-on-developer-to-complete-construction-on-time","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2020\/01\/23\/ncdrc-paltry-compensation-not-an-adequate-redressal-to-allottee-as-it-creates-no-pressure-created-on-developer-to-complete-construction-on-time\/","title":{"rendered":"NCDRC | Paltry compensation not an adequate redressal to allottee as it creates no pressure created on Developer to complete construction on time\u00a0"},"content":{"rendered":"<p style=\"text-align: justify;\"><b>National Consumer Disputes Redressal Commission (NCDRC):<\/b>\u00a0Justice V.K. Jain (Presiding Member), while disposing of a complaint, directed the builder to provide compensation in the form of simple interest at 7 percent per annum from the expected date for delivery of possession till the date on which the possession was actually offered to the allottees.<span class=\"Apple-converted-space\">\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\">In the present matter, DLF Universal Limited, was the developer of a residential project. The residential apartments constructed by it were allotted to buyers who executed a Buyers\u2019 Agreement. Developer was to complete construction within 36 months. Complainants submitted that Buyers\u2019 Agreements were unilaterally prepared by the developer and since the earnest money paid by them could be forfeited if they refused to execute the agreement they were forced to sign it. On delay, the developer intimated the allottees to either accept delay of 16 months or to exit taking refund with simple interest at 9 percent per annum. They also disputed the increase in super area, and claimed refund of parking and club charges facility and service tax, and also demanded timely payment rebate and early payment rebate to all the apartment owners.<\/p>\n<p style=\"text-align: justify;\">The counsel for respondent submitted that at time of booking itself, allottees were informed that schedule for delivering possession was tentative. It was submitted that early payment rebate had been given to all the allottees who made early payment, whereas timely payment rebate was adjusted for all allottees who were not in default at the time possession According to the developer the delay happened primarily on account of the abnormal time taken in approval of the building plans and the order issued by the Government of Delhi, stopping construction for a considerable time.<\/p>\n<p style=\"text-align: justify;\">NCDRC held that the developer had not sought payment for increase in the super area beyond 15 percent, the allottees were required to pay for such an increase. Developer could not be allowed to charge separately from the allottees for the club area and the basements used for car parking. No force majeure circumstance had been sought on account of the delay in sanction of the building plans, in the force majeure chart submitted by the developer.<span class=\"Apple-converted-space\">\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\">Regarding the quantum of compensation, reliance was placed on<span class=\"Apple-converted-space\">\u00a0 <\/span><i>Pioneer Urban Land and Infrastructure Ltd v. Govindan Raghavan<\/i>, <a href=\"http:\/\/www.scconline.com\/DocumentLink\/6yvpmWJH\">(2019) 5 SCC 725<\/a>, and ordered the developer to pay compensation in the form of simple interest at 7 percent per annum from the expected date for delivery of possession till the date on which the possession was actually offered to them.<\/p>\n<p style=\"text-align: justify;\">The Commission disposed off the petition,a sking<span class=\"Apple-converted-space\">\u00a0 <\/span>the developer to pay Rs 50,000 as litigation cost. [Capital Greens Flat Buyers Association v. DLF Universal Ltd., Consumer Case No. 351 of 2015, decided on 03-01-2020]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>National Consumer Disputes Redressal Commission (NCDRC):\u00a0Justice V.K. Jain (Presiding Member), while disposing of a complaint, directed the builder to provide compensation in <\/p>\n","protected":false},"author":8808,"featured_media":199533,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,11],"tags":[32140,5711,39305,37550,39304],"class_list":["post-224458","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-casebriefs","category-tribunals_commissions_regulatorybodies","tag-buyers-agreement","tag-construction","tag-delivery-of-possession","tag-developer","tag-paltry-compensation"],"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 | Paltry compensation not an adequate redressal to allottee as it creates no pressure created on Developer to complete construction on time\u00a0 | 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\/2020\/01\/23\/ncdrc-paltry-compensation-not-an-adequate-redressal-to-allottee-as-it-creates-no-pressure-created-on-developer-to-complete-construction-on-time\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"NCDRC | Paltry compensation not an adequate redressal to allottee as it creates no pressure created on Developer to complete construction on time\u00a0\" \/>\n<meta property=\"og:description\" content=\"National Consumer Disputes Redressal Commission (NCDRC):\u00a0Justice V.K. 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Agrawal (President) and M. Shreesha (Member) while addressing a complaint filed under the Consumer Protection Act stated that: \u201cComplainants cannot be made to wait indefinitely for possession of the unit, as the construction is yet to be completed\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":233132,"url":"https:\/\/www.scconline.com\/blog\/post\/2020\/07\/30\/ncdrc-developer-to-refund-principal-amount-of-3-4-crores-along-with-9-interest-in-view-of-4-years-delay-of-giving-possession-of-apartment\/","url_meta":{"origin":224458,"position":1},"title":"NCDRC | Developer to refund principal amount of 3.4 Crores along with 9% interest in view of 4 years delay of giving apartment&#8217;s possession","author":"Bhumika Indulia","date":"July 30, 2020","format":false,"excerpt":"National Consumer Disputes Redressal Commission (NCDRC):\u00a0A Division bench of Justice R.K. Agrawal (President) and S.M. Kanitkar (Member) directed the developer to refund the principal amount along with compensation in the form of 9% p.a. interest and 25,000 as litigation costs in view of a 4-year delay in giving the possession\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":256639,"url":"https:\/\/www.scconline.com\/blog\/post\/2021\/11\/02\/law-on-builder-buyer-dispute\/","url_meta":{"origin":224458,"position":2},"title":"Law on Builder-Buyer Dispute | 9-years delay in delivering possession of apartment: Read NCDRC\u2019s decision on refund and interest","author":"Bhumika Indulia","date":"November 2, 2021","format":false,"excerpt":"Can Buyer be asked to wait indefinitely for possession of flat even after 9-years of delay?","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":214336,"url":"https:\/\/www.scconline.com\/blog\/post\/2019\/05\/06\/ncdrc-inordinate-delay-by-builder-in-delivery-of-flats-possession-amounts-to-deficiency-of-service-allottee-granted-complete-refund-along-with-compensation\/","url_meta":{"origin":224458,"position":3},"title":"NCDRC | Inordinate delay by builder in delivery of flats\u2019 possession amounts to deficiency of service \u2013 allottee granted complete refund along with compensation\u00a0","author":"Bhumika Indulia","date":"May 6, 2019","format":false,"excerpt":"National Consumer Disputes Redressal Commission: Justice V.K. Jain (Presiding Member), allowed a consumer complaint seeking a refund of money paid to book a residential flat in a construction project being carried out by the developer.\u00a0 Complainant herein had booked a residential flat in a project started by the opposite party\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":234727,"url":"https:\/\/www.scconline.com\/blog\/post\/2020\/08\/24\/delayed-handing-over-of-possession-amounts-to-deficiency-flat-buyers-entitled-to-compensation-sc\/","url_meta":{"origin":224458,"position":4},"title":"Delayed handing over of possession amounts to &#8216;deficiency&#8217;; flat buyers entitled to compensation: SC","author":"Prachi Bhardwaj","date":"August 24, 2020","format":false,"excerpt":"\u201cFlat purchasers suffer agony and harassment as a result of the default of the developer. Flat purchasers make legitimate assessments in regard to the future course of their lives based on the flat which has been purchased being available for use and occupation. These legitimate expectations are belied when 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\/2017\/09\/Supreme-Court_Colour.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Supreme-Court_Colour.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Supreme-Court_Colour.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Supreme-Court_Colour.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Supreme-Court_Colour.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":222197,"url":"https:\/\/www.scconline.com\/blog\/post\/2019\/11\/16\/ncdrc-in-case-of-unreasonable-delay-in-offering-possession-of-allotted-flat-consumer-entitled-to-seek-refund-of-amount-paid-with-compensation\/","url_meta":{"origin":224458,"position":5},"title":"NCDRC | In case of unreasonable delay in offering possession of allotted flat, consumer entitled to seek refund of amount paid with compensation","author":"Bhumika Indulia","date":"November 16, 2019","format":false,"excerpt":"National Consumer Disputes Redressal Commission (NCDRC): Justice V.K. Jain (Presiding Member), while disposing of a complaint, directed the builder to refund the amount paid by consumer along with compensation due to failure in offering the possession of the residential apartment with respect to the agreed agreement between the parties. 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