{"id":238256,"date":"2020-10-30T14:00:59","date_gmt":"2020-10-30T08:30:59","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=238256"},"modified":"2020-11-16T13:44:51","modified_gmt":"2020-11-16T08:14:51","slug":"ncdrc-can-homebuyers-be-made-to-wait-indefinitely-for-the-possession-of-plots-allotted-12-years-back-commission-answers-while-directing-ansal-to-make-full-return-to-buyers","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2020\/10\/30\/ncdrc-can-homebuyers-be-made-to-wait-indefinitely-for-the-possession-of-plots-allotted-12-years-back-commission-answers-while-directing-ansal-to-make-full-return-to-buyers\/","title":{"rendered":"NCDRC | Can homebuyers be made to wait indefinitely for possession of plots allotted 12 years back? Commission answers while directing Ansal to make full return to buyers"},"content":{"rendered":"

National Consumer Disputes Redressal Commission (NCDRC):<\/strong> V.K. Jain (Presiding Member), held that homebuyers cannot\u00a0be made to wait indefinitely for the possession of the plots allotted to them and they are entitled to refund of the amount which they paid<\/p>\n

Developer Company was selected by Government of Uttar Pradesh for the development of a township in Greater Noida in the name of ‘Sushant-Megapolis’.<\/p>\n

No Time Frame<\/span><\/h3>\n

Large number of complainants booked residential plots and executed agreements with the OP. In the agreement, no time frame for delivering possession of the plots to the allottees was incorporated but the complainants were verbally told that the possession would be handed over within 36 months from the execution of the agreement.<\/p>\n

Case of the Complainants<\/span><\/h3>\n

Complainants stated that the township has not been developed, hence no possession was offered to them along with other allottees.<\/p>\n

Class Action<\/span><\/h3>\n

Therefore complainants approached the commission by way of class action<\/strong> under Section 12(1)(c) of the Consumer Protection Act seeking a refund of the amount paid by the allottees along with compensation.<\/p>\n

Vide an order in 2017, Commission granted the permission to the complainants to institute this complaint on behalf of all the allotted who wanted a refund of the amount paid to the OP. Hence, public notice in two newspapers, circulated in Delhi\/NCR were published and several allottees were permitted to join the complaint.<\/p>\n

Preliminary objection raised by the OP was that the complaint is barred by limitation.<\/p>\n

Analysis & Decision<\/span><\/h3>\n
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OP having not completed the development and having not offered possession of the allotted plots to the allottees, they had a recurrent cause of action to file the Consumer Complaint, bench relied on the decision of\u00a0Meerut Development Authority v. Mukesh Kumar Gupta,\u00a0<\/em>(2012) CPJ 12 (SC).<\/p>\n

Commission found no merit in the above contention.<\/p>\n

Farmers’ Protest | Compulsory Acquisition<\/span><\/h4>\n

With regard to delay in development due to the farmer’s protest, bench on perusal of the communication sent by OP noted that there was no dispute with the farmers as the land comprised in the project namely ‘Megapolis’ was concerned, the said land having been purchased by the complainant on market rate with the consent of landowners, the said case is not of compulsory acquisition of land by the State government.<\/p>\n

Small Parcels of Land | Patches required to be acquired from State Government<\/span><\/h4>\n

The proposed project was a large land acquired directly from the farmers, though there were some small patches which were to be acquired from the State Government. OP having advertised the project and having executed the agreements for development and sale of plots, it was for them to purchase those small patches of land from the landowners at a negotiated price even if they had to pay a price higher than the price they were willing to pay.<\/span><\/p>\n

Hence, it could not be said that the non-acquisition of such small parcels of land delayed the project.<\/p>\n

Further, the bench stated that even if the plea taken by the OP with respect to non-acquisition of those small parcels of land is accepted on its face value, the allottees cannot be made to suffer for the inability of the OP to acquire those land parcels.<\/span><\/p>\n

\n

It’s been 12 years since the sale of the said plots started, but till this date, it is not known whether the OP will be able to complete the development work and if so when the said development would be completed.<\/span><\/p>\n<\/blockquote>\n

Class Action<\/span><\/h4>\n
\n
\n
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Counsel for the complainant stated that they have settled with eleven allottees other than the original complainants and they are in negotiations with thirteen other allottees.<\/p>\n

For the above-stated, Commission stated that even if the above situation prevails, that would not lead to the dismissal of the class action. Once the jurisdiction of this Commission by way of a class action is invoked, the Commission is required to take the matter to its logical conclusion unless the matter is settled with each and every member of the class.<\/em><\/span><\/p>\n

No Specific Time Period<\/span><\/h4>\n

Commission added to its analysis that though no specific time period for completing the development and offering possession to the allottees was indicated in the agreement, that would not entitle the builder to prolong the development work to an indefinite period.<\/span><\/p>\n

\n
\n
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As far as the development of plots is concerned, such a work does not require as much time as required for construction of group housing flats in multistoried buildings.<\/span><\/p>\n<\/blockquote>\n<\/div>\n<\/div>\n<\/div>\n

\n
\n
\n
\n

“…the development work of the plots, even on a large scale, must be completed within a period of three years from the approval of the lay-out plans.”<\/span><\/p>\n<\/blockquote>\n

Bench relied on the Supreme Court decision of\u00a0Pioneer Urband Land & Infrastructure Ltd. v. Govindan Raghavan,\u00a0<\/em>(2019) 5 SCC 725<\/a> and Kolkata West International City (P) Ltd. v. Devasis Rudra II,<\/em> (2019) CPJ 29 (SC).<\/span><\/p>\n

In view of the above discussion, Commission held that the allottees of residential plot in the project namely ‘Sushant Megapolis’ cannot be made to wait indefinitely for the possession of the plots allotted to them and they are entitled to refund of the amount which they paid to the OP along with appropriate compensation.<\/p>\n

Further, the OP shall refund the entire principal amount received and pay Rs 50,000 as cost of litigation.[Bhrigu Kaushik v. Ansal Hi-Tech Township Ltd., Consumer Case No. 1951 of 2016, decided on 16-10-2020]<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

National Consumer Disputes Redressal Commission (NCDRC): V.K. Jain (Presiding Member), held that homebuyers cannot\u00a0be made to wait indefinitely for the possession of <\/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":[43928,8671,30331,33875,39605,37550,42845,2723,43927,33585],"class_list":["post-238256","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-casebriefs","category-tribunals_commissions_regulatorybodies","tag-ansal","tag-builder","tag-class-action","tag-commission","tag-consumer-complaint","tag-developer","tag-homebuyer","tag-Land_Acquisition","tag-ncdr","tag-plots"],"yoast_head":"\nNCDRC | Can homebuyers be made to wait indefinitely for possession of plots allotted 12 years back? 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NCDRC answers relying on SC decision","author":"Bhumika Indulia","date":"November 11, 2021","format":false,"excerpt":"National Consumer Disputes Redressal Commission (NCDRC): Coram of Justice R.K. Agrawal (President) and Dr S.M. Kantikar (Member)reiterated that the presence of an arbitration clause in the agreement does not bar the jurisdiction of consumer fora. Grievance of the Buyer Complainants alleged that the Project in which they had booked their\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":6715,"url":"https:\/\/www.scconline.com\/blog\/post\/2015\/07\/24\/fine-of-rs-5-lakh-imposed-upon-jalandhar-improvement-trust-for-continuous-filing-of-meritless-appeals\/","url_meta":{"origin":238256,"position":1},"title":"Fine of Rs 5 lakh imposed upon Jalandhar Improvement Trust for continuous filing of meritless appeals","author":"Sucheta","date":"July 24, 2015","format":false,"excerpt":"National Consumer Disputes Redressal Commission (NCDRC): NCDRC has imposed a fine of Rs five lakh upon Jalandhar Improvement Trust, for abusing the process of law and filing meritless appeals before various consumer foras in order to cover up its own fault and negligence. \u201cNo leniency should be shown to litigants\u2026","rel":"","context":"In "Tribunals\/Commissions\/Regulatory Bodies"","block_context":{"text":"Tribunals\/Commissions\/Regulatory Bodies","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/tribunals_commissions_regulatorybodies\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/10\/scc-blog_Page_9.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/10\/scc-blog_Page_9.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/10\/scc-blog_Page_9.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/10\/scc-blog_Page_9.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/10\/scc-blog_Page_9.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":219505,"url":"https:\/\/www.scconline.com\/blog\/post\/2019\/09\/13\/ncdrc-buyers-cannot-be-made-to-wait-indefinitely-for-possession-of-apartment-in-case-of-incomplete-construction-developer-to-refund-the-amount-paid\/","url_meta":{"origin":238256,"position":2},"title":"NCDRC | Buyers cannot be made to wait indefinitely for possession of\u00a0apartment in case of incomplete construction; ‘Developer’ to refund the amount paid","author":"Bhumika Indulia","date":"September 13, 2019","format":false,"excerpt":"National Consumers Disputes Redressal Commission (NCDRC): The Bench comprising of Justice R.K. 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 "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":223688,"url":"https:\/\/www.scconline.com\/blog\/post\/2019\/12\/30\/ncdrc-buyer-cannot-be-made-to-wait-indefinitely-for-possession-of-flat-when-the-entire-consideration-amount-has-been-made\/","url_meta":{"origin":238256,"position":3},"title":"NCDRC | Buyer cannot be made to wait indefinitely for possession of flat when the entire consideration amount has been made","author":"Bhumika Indulia","date":"December 30, 2019","format":false,"excerpt":"National Consumer Disputes Redressal Commission (NCDRC):\u00a0R.K. Agrawal (President) while deciding the present consumer case held that, \"Wherever the Builder commits a particular date or time frame for completion of the construction and offering possession to the Buyer, they must necessarily honour the commitment made by them.\" In the present matter,\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, 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