Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Consumer Protection Allotment of residential unit by builder |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case(s) Referred | Referred Case 0 Referred Case 1 |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Consumer Protection: Allotment of residential unit by builder – Clause 20 of the allotment letter stipulated for handing-over of the unit in two and half years and for compensation at the rate of Rs. 2 per sq. feet of the unit per month for the period of delay beyond one year form the stipulated date – Failure to hand-over the possession within the time agreed upon – Consumer complaint – Consumer Commission directed the builder to pay compensation with 10% interest pa. on the amount deposited by the complainant from June 2015 till actual date of possession i.e. on July 26, 2018 – Consumer Court also awarded an amount of Rs. 2 lakhs towards loss of rent and Rs.25,000/- as costs – Appeal to Supreme Court – Held: The compensation @ Rs. 2/- per sq.ft. was one sided and constitutes an unfair trade practice – As per clause 20 of allotment letter, the builder was required to hand-over the possession within three and half years (including extention due to force majeure) which came to an end by the end of December 2015 – Therefore, the interest would become payable from January 1, 2016 – In the light of prevailing market conditions, rate of interest @ 10% pa. is excessive and therefore, the rate is fixed at 7% pa. – Also, there was no justification to award an amount of Rs. 2 lakhs, once interest for delayed handing- over of possession was granted – Order of Consumer Commission modified. Words and Phrases: “endeavour” – Meaning of. |
Judge | Hon'ble Dr. Justice D.Y. Chandrachud |
Neutral Citation | 2021 INSC 162 |
Petitioner | Nbcc (india) Limited |
Respondent | Shri Ram Trivedi |
SCR | [2021] 2 S.C.R. 280 |
Judgement Date | 2021-03-08 |
Case Number | 274 |
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