Content Provider | Supreme Court of India |
---|---|
e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | 1986 Consumer Protection Act |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Act(s) Referred | Indian Contract Act, 1872 (9 of 1872) Consumer Protection Act, 1986 (68 of 1986) |
Case(s) Referred | Referred Case 0 |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Consumer Protection Act, 1986 : Complaint against developer of housing project – By the purchaser of a flat in the project – Alleging deficiency in service and unfair trade practices for not having delivered the flat – National Consumer Disputes Redressal Commission allowed the complaint and directed the developers to refund the amount paid by the complainants and also to pay compensation and cost of litigation – On appeal, held: Contractual damages are usually awarded to compensate an injured party to a breach of contract for the loss of his bargain – This rule is more qualified when it comes to real estate sector – Onus is on the seller to show his bona fides and best efforts in discharging the obligation – Mere unwillingness to carry out the duty could constitute bad faith sufficient for purchaser to claim damages – In the facts of the present case there is deficiency of service on part of the developer, which entitles the complainant to damages/compensation – Generally damages become due on the date when the breach of contract takes place and assessed by the reference to the time of breach – However, the rule is flexible which needs to be assessed in the facts and circumstances of individual case – In the facts of the present case the damage need not be determined from the date of breach of contract – The compensation granted by the National Commission has surpassed the actual-loss based damages and has entered the domain of gain-based remedy – Since the damages for the contractual breach is compensatory, damages awarded should not be excessive – Court needs to take a balanced approach so as to ensure right compensation – Therefore compensation of Rs. 3,65,46,000/- granted by National Commission is reduced to Rs. 2,27,20,000/- – Compensation.Damages for commercial contracts – Under the Act – Determination of – Held: Under Consumer Protection Act damages for commercial contracts, need to be determined as per Contract Act – Contract Act, 1872 . |
Judge | Honble Mr. Justice N.V. Ramana |
Neutral Citation | 2018 INSC 233 |
Petitioner | M/s. Fortune Infrastructure (now Known As M/s. Hicon Infrastructure) & Anr. |
Respondent | Trevor D’lima & Ors. |
SCR | [2018] 3 S.C.R. 273 |
Judgement Date | 2018-03-12 |
Case Number | 3533 |
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