NDLI: Pioneer Urban Land & Infrastructure Ltd. Vs. Govindan Raghavan

Content Provider	Supreme Court of India
e-ISSN	30484839
Language	English
Access Restriction	NDLI
Subject Keyword	occupancy certificate Deficiency of service Consumer Protection Act agreement to purchase a flat s.23 1986
Content Type	Text
Resource Type	Law Judgement
Jurisdiction	India
Act(s) Referred	Consumer Protection Act, 1986 (68 of 1986)
Case(s) Referred	Referred Case 0 Referred Case 1 Referred Case 2 Referred Case 3 Referred Case 4
Case Type	Appeal
Court	Supreme Court of India
Disposal Nature	Appeal Dismissed
Headnote	Consumer Protection Act, 1986 – s.23 – Deficiency of service – Appellant-Builder launched a residential project and respondentflat purchaser entered into an Apartment Buyer’s agreement to purchase an apartment in the said project for a total sale consideration of Rs.4,83,25,280/- – As per agreement, the appellant was to apply for the occupancy certificate within 39 months from the date of excavation with grace period of 180 days – However, Appellant-builder failed to apply for occupancy certificate as per agreement – Consumer complaint filed before the National Commission – During the pendency of the proceedings, the appellant obtained the occupancy certificate and pleaded National Commission to direct the respondent to take possession of the flat – However, the respondent refused to take possession as there was an inordinate delay of almost 3 years – National Commission allowed the consumer complaint and held that respondent could not be compelled to take possession at such belated stage – Further, appellant was directed to refund Rs.4,48,43,026 i.e. the amount deposited by the respondent along with interest @ 10.7% S.I. p.a. towards compensation – On appeal, held: The respondent-flat purchaser made out a clear case of deficiency of service on the part of the appellant-builder – Appellant failed to fulfill his contractual obligation of obtaining the occupancy certificate and offering possession of the flat to the respondent within the time stipulated in the agreement, or within a reasonable time thereafter – Respondent was justified in terminating the Apartment Buyer’s Agreement by filing the Consumer Complaint, and cannot be compelled to accept the possession whenever it is offered by the Builder – Respondent was legally entitled to seek refund of the money deposited by him along with appropriate compensation – Respondent had to also service a loan that he had obtained for purchasing the flat by paying interest @10% to the Bank – In the circumstances, no illegality in the impugned order passed by the National Commission – Haryana Real Estate (Regulation And Development) Rules, 2017 – r.15. Consumer Protection Act, 1986 – s.2(r) – Unfair and unreasonable apartment buyer’s agreement – Held: A term of a contract will not be final and binding if it is shown that the flat purchasers had no option but to sign on the dotted line, on a contract framed by the builder – The contractual terms of the Buyer’s Agreement in the instant case was ex-facie one-sided, unfair and unreasonable – The incorporation of such one-sided clauses in an agreement constitutes an unfair trade practice as per s.2(r) of the Consumer Protection Act since it adopts unfair methods or practices for the purpose of selling the flats by the Builder.
Judge	Hon'ble Ms. Justice Indu Malhotra
Neutral Citation	2019 INSC 458
Petitioner	Pioneer Urban Land & Infrastructure Ltd.
Respondent	Govindan Raghavan
SCR	[2019] 5 S.C.R. 1169
Judgement Date	2019-04-02
Case Number	12238

Sl.	Authority	Responsibilities	Communication Details
1	Ministry of Education (GoI), Department of Higher Education	Sanctioning Authority	https://www.education.gov.in/ict-initiatives
2	Indian Institute of Technology Kharagpur	Host Institute of the Project: The host institute of the project is responsible for providing infrastructure support and hosting the project	https://www.iitkgp.ac.in
3	National Digital Library of India Office, Indian Institute of Technology Kharagpur	The administrative and infrastructural headquarters of the project	Dr. B. Sutradhar bsutra@ndl.gov.in
4	Project PI / Joint PI	Principal Investigator and Joint Principal Investigators of the project	Dr. B. Sutradhar bsutra@ndl.gov.in Prof. Saswat Chakrabarti will be added soon
5	Website/Portal (Helpdesk)	Queries regarding NDLI and its services	support@ndl.gov.in
6	Contents and Copyright Issues	Queries related to content curation and copyright issues	content@ndl.gov.in
7	National Digital Library of India Club (NDLI Club)	Queries related to NDLI Club formation, support, user awareness program, seminar/symposium, collaboration, social media, promotion, and outreach	clubsupport@ndl.gov.in
8	Digital Preservation Centre (DPC)	Assistance with digitizing and archiving copyright-free printed books	dpc@ndl.gov.in
9	IDR Setup or Support	Queries related to establishment and support of Institutional Digital Repository (IDR) and IDR workshops	idr@ndl.gov.in

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