Supreme court Judgment: Consumer Rights Prevail in Real Estate Dispute
Supreme Court: In a recent ruling by the Supreme Court of India, Civil Appeal No. 971 of 2023, the court delivered a significant judgment in the case of Venkataraman Krishnamurthy and another vs. Lodha Crown Buildmart Pvt. Ltd.
The case centered around the purchase of a 4BHK apartment in Mumbai’s New Cuffe Parade, with the appellants alleging non-delivery of possession within the stipulated time. The National Consumer Disputes Redressal Commission (NCDRC) had earlier disposed of the complaint, directing the respondent to deliver possession within three months, among other directives.
The appellants sought a complete refund, alleging the termination of the agreement due to the respondent’s failure to meet possession deadlines. The NCDRC, however, opined that the delay was not unreasonable, allowing the respondent to offer possession with certain conditions.
The key contractual clauses were examined, including the Agreement to Sell dated 29.11.2013. The court emphasized Clause 11, which specified the delivery of possession for fit-outs by 30.06.2016, extendable to 30.06.2017, and the consequences of delay as outlined in Clause 11.3.
Crucially, the respondent-company claimed to possess a ‘Part Occupancy Certificate,’ deeming it as possession. Still, the court clarified that this certificate did not fulfill the conditions outlined in the Agreement, and the respondent had not met the contractual obligations.
The court further highlighted that the NCDRC had overstepped its jurisdiction by ignoring the binding contractual clauses and introducing its own rationale.
In conclusion, the Supreme Court set aside the NCDRC’s order, allowing Consumer Complaint No. 35 of 2018 and directing the respondent to refund the deposited amount of ₹2,25,31,148 in twelve equal monthly installments, with simple interest at 12% p.a. The judgment reaffirms consumer rights and contract sanctity in real estate transactions.
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