STATECONSUMERDISPUTESREDRESSALCOMMISSION,

U.T.,CHANDIGARH

ComplaintcaseNo.
DateofInstitution
DateofDecision

:
:
:

153of2015
27.07.2015
03.11.2015

1. Mr.MadanLalTanejaS/oSh.RadhuRam,C/o#3065/1,Sector40D,Chandigarh.
2. Smt.BimlaTanejaW/oMr.MadanLalTaneja,C/o#3065/1,Sector40D,Chandigarh.
Complainants

Versus
M/sOmaxeChandigarhExtensionDevelopersP.Ltd.,SCO143144,FirstFloor,Sector8C,Chandigarh.
....OppositeParty.
ComplaintunderSection17oftheConsumerProtectionAct,1986

BEFORE:JUSTICEJASBIRSINGH(RETD.),PRESIDENT
MR.DEVRAJ,MEMBER.
MRS.PADMAPANDEY,MEMBER

Arguedby:Sh.PankajChandgothia,Advocateforthecomplainants.
Sh.VanshMalhotra,AdvocatefortheOppositeParty.

PERDEVRAJ,MEMBER

Thefacts,inbrief,arethattheOppositePartyfloatedaSchemefortheallotmentofresidential
flatsandindependentfloors,underthenameandstyleofSILVERBIRCHinOmaxeChandigarh
ExtensionandofficialsoftheOppositePartystartedpromotingthesameintheyear2010i.e.much
beforetheactualdrawingswerepreparedandevenbeforetheactualgrantoflicencetodeveloptheland.
Itwasstatedthatsincethecomplainantswereinurgentrequirementofresidentialpremises,inthe

developedarea,theygaveachequeofRs.4Lacsasregistrationmoneyforanindependentfloor,tothe
OppositePartyatitsChandigarhOffice.ItwasfurtherstatedthattheOppositePartymaintainedstoic
silenceanddidnotsendanyformalallotmentletterorBuyersAgreement.Itwasfurtherstatedthatthe
complainantskeptonvisitingtheChandigarhofficeoftheOppositePartyandpayingtheinstallmentsas
demandedfromtimetotime.Itwasfurtherstatedthatmeanwhile,allotmentletter/ApartmentBuyers
Agreementwasgotsignedon27.6.2011(AnnexureC2)atChandigarh.Itwasfurtherstatedthatvide
letterdated10.01.2014(AnnexureC4),theOppositePartyinformedthattheconstructionwas
progressingfastandpossessionwouldbeofferedverysoon.ItwasfurtherstatedthattheOppositeParty
demandedRs.3,62,482/(i.e.Rs.2,291.61persq.feet)onaccountofincreaseinareaby234sq.ft.andas
such,thecomplainantspaidRs.42,083/inexcess,whichwereliabletoberefunded.
2.ItwasfurtherstatedthattheOppositePartyevendidnothonouritscommitmenttopayRs.10/
persq.feetpermonthfordelayindeliveringpossession.Itwasfurtherstatedthatthecomplainants
receivedademandforpaymentalongwithofferofprovisionalpossessiondated23.8.2014,receivedby
emailon01.09.2014(AnnexureC6).ItwasfurtherstatedthattheamountofRs.3,73,908/mentioned
thereinwasrevisedtoRs.3,42,304/aspercorrectcalculations,whichthecomplainantspaidvideletter
dated16.09.2014(AnnexureC7).Itwasfurtherstatedthatasperaccountsstatement(AnnexureC8),
thecomplainantshadclearedtheentireduestowardstheindependentfloor.Itwasfurtherstatedthatthe
OppositePartyhasnotdeliveredtheactualphysicalpossessionoftheindependentfloordespiteletters
dated2.2.2015and9.3.2015(AnnexuresC9andC10respectively)senttoitbythecomplainants,
whichtheOppositePartywastodeliverwithin24monthsatthemost.Itwasfurtherstatedthattwoyears
periodforhandingoverphysicalpossessionoftheindependentfloor,fromthedateofBuyers
Agreement,expiredinJune2013.Itwasfurtherstatedthattherewasnoconcreteschemeorlicenseor
landavailablewiththeOppositePartyfortheintendedprojectandsuchprelaunchoffersandbookings
donotstandthescrutinyoflaw.ItwasfurtherstatedthatthecomplainantstookloanfromtheBankto
paytheinstallments,whichhadgonewaste.ItwasfurtherstatedthatcomplainantNo.1issufferingloss
ofrentdeductionamountingtoRs.7,600/permonthandRs.2,100/approximatelyaslossofhouserent
allowanceastheOppositePartydelayeddeliveryofpossessionoftheflat,inquestion.
3.ItwasfurtherstatedthattheaforesaidactsoftheOppositeParty,amountedtodeficiency,in
renderingservice,asalso,indulgenceintounfairtradepractice.Whenthegrievanceofthecomplainants,
wasnotredressed,leftwithnoalternative,acomplaintunderSection17oftheConsumerProtectionAct,
1986(hereinaftertobecalledastheActonly),wasfiled,seekingdirectionstotheOppositePartytogive
actualphysicalpossessionoftheallottedindependentflooraftercompletingthesameinallrespectsand
topaypenalty@Rs.10/persq.feetpermonthfor2154sq.feetapartmentw.e.f.October2012refund
theexcessamountofRs.42,083/chargedtowardsincreaseareaalongwithinterestRs.5Lacas
compensationforphysicalharassmentandmentalagonypayhouserentallowance@Rs.9,700/per
monthw.e.f.October,2012Rs.1LacaspunitivedamagestobereleasedinfavouroftheUTStateLegal
ServicesAuthorityandRs.50,000/ascostoflitigationoranyotherrelief,whichthisCommission
deemedfitinthefactsandcircumstancesofthecase.
4.TheOppositeParty,initswrittenstatement,filedbywayofaffidavitofSh.DheerajSharma,its
Officer,statedthatwhilesigningtheAgreement,thecomplainantsthemselveschoseInterestFree
ConstructionLinkedInstallmentPlanandnowtheycouldnotstepbackbyfilingthiscomplaintandwas
stoppedbyhisownactandconduct.Itwasfurtherstatedthattheallotmentwasneverpostponedbythe
OppositePartyandmoreover,letterdated17.7.2015(AnnexureR1)wassenttothecomplainants
requestingtotakepossession.ItwasfurtherstatedthattheBuyersAgreementwasgiventothe
complainantsattheveryinitialstage,whichwasadmittedbytheminPara8oftheircomplaint.Itwas
furtherstatedthattheAgreement/Allotmentletterwasforwardedforexecutionon19.4.2011(Annexure
R2).Itwasfurtherstatedthatthecomplainantsfailedtodiscloseabouttheplanwhichwasadoptedby
them.Itwasfurtherstatedthatthecomplainantshavedelayeddepositoffinalpayment.Itwasfurther

statedthatasperClause4oftheAgreement,thecomplainantsweretopayfortheinitial10%ofincrease
intheareaattherateofthebookingofthesaidunitandthebalanceincreasedareawastobepaidatthe
prevailingCompanysrate/marketrate.Itwasfurtherstatedthatthedelaypartwasonthecomplainants
asthepaymentwasnotmadeintime.Itwasfurtherstatedthattheconstructionwasinprogressfrom
15.9.2011andthetentativedateofpossession,asperClause31EoftheAgreement,was15.8.2014.It
was,however,admittedthatasperClause24oftheAgreement,theconstruction/developmentofthe
independentfloor/projectwastobecompletedwithin24monthsfromthedateofstartoftheconstruction
orwithintheextendedperiodofsixmonths,subjecttoforcemajeureconditions.Itwasfurtherstated
thatthecomplainantsareraisingbaselessallegationtomisleadtheCommission.Itwasfurtherstatedthat
astheflatwascompletedlongtimeback,thecomplainantswereofferedtotakeoverpossessionandto
getregistrationofhisflatsubjecttoclearingtheremainingdueamount(AnnexureR2).Itwasfurther
statedthatason23.8.2014,theofferofpossessionofthesaidunithadalreadybeenofferedtothe
complainants.ItwasfurtherstatedthattheOppositePartywasneitherdeficient,inrenderingservicenor
itindulgedintounfairtradepractice.Theremainingaverments,madeinthecomplaint,weredenied.
5.ThecomplainantsfiledrejoinderbywayofaffidavitofSh.MadanLalTaneja(complainant
No.1),whereintheyreiteratedalltheaverments,containedinthecomplaint,andrepudiatedthose,
containedinthewrittenversionoftheOppositeParty.
6.Thecomplainants,insupportoftheircase,submittedtheirjointaffidavit,bywayofevidence
alongwithanumberofdocuments.
7.TheOppositeParty,insupportofitscase,submittedaffidavit/replyofSh.DheerajSharma,its
Officer,alongwithanumberofdocuments,bywayofevidence.
8.WehaveheardtheCounselfortheparties,and,havegonethroughtheevidenceandrecordofthe
case,carefully.
9.ItisevidentonrecordthatthecomplainantswereallottedanindependentfloorbytheOpposite
Partyvideallotmentletterdated27.6.2011(AnnexureC2),totalbasicsalepricewhereofwas
Rs.40,54,600.00.Besides,Rs.40,000/,Rs.85,000/andRs.20,000/werepayableonaccountofClub,
powerbackupinstallationcostandInterestFreeMaintenanceSecurityrespectively.Thus,thetotalprice
wasRs.41,99,600/asperAnnexureB(PartII)(Page41ofthefile).ItisalsoevidentfromAnnexureB
(PartIII)(Page42)thatthecomplainantsoptedPlanB:Interestfreeconstructionlinkedpaymentplan.
AsperClause31(a)oftheallotmentletter,developmentoftheunitwastobecompletedwithin24
monthsorwithinanextendedperiodofsixmonths,fromthedateofstartofconstruction,subjecttoforce
majeureconditions.Theconstruction,asadmittedbytheOppositePartyinPara10ofitswritten
statement,started/wasinprogressw.e.f.15.09.2011,whichmeantthatbycomputing24+6months
period,possessionwastobeofferedby15.03.2014.Itisalsoevidentthatthecomplainants,byandlarge,
hadmadethepaymentofinstallmentsintime.TheInterestFreeConstructionLinkedInstallmentPlanis
extractedhereunder:

PlanB:
Atthetimeofbooking
Onallotment/within45daysofbooking
Onstartofconstruction
OncompletionofPlinthLevel
OncastingofGroundFloorRoof

INTERESTFREECONSTRUCTION
LINKEDINSTALLMENTPLAN

Rs.<<BAmount>>/
20%ofBSPlessBookingamount
10%ofBSP+50%ofPLC(ifany)
10%ofBSP+50%ofPLC(ifany)
10%ofBSP+50%ofAdditionalCost

OncastingofFirstFloorRoof
OncastingofSecondFloorRoof
Oncompletionofbrickworkandinternal
plastering
Oncompletionofflooring(exceptfinal
grindingandexternalplastering)
OncompletionofExternalPlastering
Onofferofpossession

10%ofBSP+50%ofAdditionalCost
10%ofBSP
10%ofBSP
10%ofBSP
5%ofBSP
5%ofBSP+OtherCost(ifany)+StampDuty,
Registration&OtherCharges(ifAny)

AsperstatementdatedSeptember27,2014(AnnexureC8)(Page59),againstthepayableamountof
Rs.48,07,186.64,asumofRs.48,03,281.01+Rs.1,41,357.74(servicetax),totalingRs.49,44,638.75,
stoodreceivedbytheOppositeParty,whichincludedfinalpaymentinthesumofRs.3,42,304/bythe
complainantsonaccountofincreaseinareaoftheUnit,demandforwhichwasraisedbytheOpposite
Partyvideletterdated23.8.2014(AnnexureC6).TheCounselforthecomplainantssubmittedthatthe
complainantsmadepaymentofasumofRs.4,00,620/inadvanceforwhich,theOppositeParty
accordedcreditnotedated3.6.2011onaccountofinterestamountingtoRs.3,905.63onaccountof
advancepayment.Provisionalpossessionwasofferedtothecomplainantsvideletteraforesaid,paras3
and4whereof,beingrelevant,areextractedbelow:
BetheProudownerinpossessionofyourdreamhouseinourPrestigiousProject
OMAXESILVERBIRCH,whichisalogicaldestinationofgrowingaspirations,
ahometosomeofthefinestelementsofaccomplishedlifestyle.Inthisregard,we
takeimmensepleasuretoinformyouthatallottedabovesaidunitisontheverge
ofcompletion.
Weherebyofferyouprovisionalpossessionofthesaidunituponcomplianceof
necessaryformalitiesbyyouincludingpaymentofbalancesaleconsiderationas
statedintheStatementofAccountannexedheretoasAnnexureAtothisLetter
within15daystothedateofletter.Uponrealisationofsaidamount,thefinal
finishingtouchestoyourResidentialUnitwillbetakenupandoncompletionof
codalformalitiesandregistrationofConveyanceDeedforsaidunitinyourfavour,
thepossessionoftheabovesaidunitwillbehandedovertoyourgoodselfasper
thetermsoftheAllotmentLetter.
10.Thefirstquestion,whichfallsforconsideration,is,astowhethertherewasdelayinoffering
possessionoftheunit,inquestion?Clearly,thecomplainantsoptedforInterestFreeConstructionLinked
InstallmentPlan.AsadmittedbytheOppositePartyinPara10ofitswrittenstatement,theconstruction
startedw.e.f.15.09.2011andasperClause23ofthebasictermsandconditionsannexedwiththe
applicationform(AnnexureC1)andClause31(a)oftheallotmentletter(AnnexureC2),thesamewas
tobecompletedwithinaperiodof24monthsplus6monthsextendedperiodfromthedateofstartof
construction.Theaforesaidperiodof30monthsfromthedateofstartofconstructionexpiredon
15.03.2014.TheOppositePartyofferedprovisionalpossessionoftheunit,inquestion,videletterdated
23.8.2014(AnnexureC6),whereby,theOppositePartyraisedademandofRs.3,73,908.75,whichwas
subsequentlyrevisedtoRs.3,42,304/.Thecomplainantdepositedthesame(Rs.3,42,304/)videletter
dated16.09.2014(AnnexureC7).Initsletteraforesaid(AnnexureC6),theOppositePartyadmitted
thatthefinalfinishingtouchestotheresidentialunitwouldbetakenupandoncompletionofformalities
andregistrationofconveyancedeedforsaidunitinfavourofthecomplainants,possessionoftheabove

saidunitwouldbehandedovertothecomplainantsasperthetermsoftheallotmentletter.Furthervide
letterdated17.7.2015,theOppositePartyinformedthecomplainantsthatitwasintheprocessofgetting
theconveyancedeedregisteredwiththeconcernedauthorities,whichmeantthatuptill17.7.2015,the
OppositePartywasnotinpositiontodeliverphysicalpossessionoftheallottedunit.Certainly,the
OppositePartywasdeficientinrenderingservicebynotofferingphysicalpossessionoftheunit,in
question,completeinallrespects,tothecomplainantswithinthestipulatedperiodaforesaid.Thus,delay
ofaround1yearisattributedtotheOppositeParty.Forsuchadelayindeliveringphysicalpossession
oftheunitbeyondthestipulatedperiod,intermsofClauses23andClause31(a)aforesaid,the
complainantsareentitledtocompensationofRs.10/(RupeesTenonly)persq.ft.permonth.Thus,
whiletheOppositePartyonaccountofitsfailuretoadheretothetimeschedulefordeliveringphysical
possessionby15.03.2014wasnotonlydeficientinrenderingservice,butalsoindulgedintounfairtrade
practice.
11.Thenextquestion,whichfallsforconsideration,is,astowhetherexcesspaymentinthesumof
Rs.42,083/wasrealizedbytheOppositePartyonaccountofincreaseintheareaoftheunitinquestion
andthecomplainantswereentitledtoitsrefund.Asisevidentfromthecontentsofletterdated
10.01.2014(AnnexureC4),theOppositePartyinformedthecomplainantsthatthechangesinthe
buildingplanofthecomplexweredulyapproved,consequenttowhich,theareaoftheprovisionally
allottedunitwasincreasedbyapprox.234sq.ftandtherevisedareaoftheunitarrivedto2154sq.ft.
Videthisletter,theOppositePartyalsorequestedthecomplainantstomakepaymentofproportionate
outstandingtowardsincreaseintheareaoftheunitonorbefore25.01.2014asperdemandletter.As
admittedbytheOppositePartyinletterdated10.1.2014,theincreasedareawastobechargedatthe
originalbookingrate.Therelevantparaofletterdated10.01.2014isextractedhereunder:
WehaveprovisionallyallottedyouaUnitbearingNo.669Padmeasuringtentative
areaof1920sq.ft.onFFfloorintheaforesaidResidentialTownshipandexecuted
anAllotmentLetter/Agreementdated12:00:00AM(MMDDYYYY)inyour
favour.KeepinginmindtheoverallbettermentoftheResidentialComplex/best
utilizationofthearea,changesinthebuildingplanoftheaforesaidComplexhad
beensuggestedbytheArchitectsoftheCompany,whichwasdulyapprovedby
thesanctioningauthorityandtheseleadtochangeinthesizeofyourprovisionally
allottedUnit,therebyanincreaseofareaofapprox.234sq.ft.inthesizeofthe
aforestatedprovisionallyallottedUnit.Thus,therevisedareafortheUnitarrived
to2154sq.ft.insteadofoldallottedUnit.Increasedareawillbechargedatthe
originalbookingrate.
ItisthecaseofthecomplainantsthattheOppositePartyinsteadofchargingfortheincreasedarea
@Rs.2,111.17persq.ft,charged@Rs.2,291.61persq.feetand,assuch,anexcessamountof
Rs.42,083/waschargedbytheOppositeParty,whichistoberefundedtothecomplainants.Inviewof
contentsofletteraforesaid,theOppositePartycouldchargefortheincreasedarea,asadmittedbyitin
theaforesaidletter,attheoriginalbookingrate.SincetheOppositeParty,fortheincreasedarea,charged
@Rs.2291.61persq.ft.,thecomplainantsareentitledtorefundofRs.42,083/.
12.Thenextquestion,thatfallsforconsideration,is,astowhether,thecomplainantsareentitledto
compensation,underSection14(1)(d)oftheAct,onaccountofmentalagonyandphysicalharassment
causedtothem.Itmaybestatedhere,thataccordingtoSection14(d)oftheAct,theConsumerForascan
grantcompensation,tothecomplainant.Thewordcompensationisagainofverywideconnotation.It
hasnotbeendefined,intheAct.Accordingtothedictionary,itmeanscompensatingorbeing
compensated,thinggivenasrecompense.Inlegalsense,itmayconstituteactuallossorexpectedlossand
mayextendtophysical,mentalorevenemotionalsuffering,insultorinjuryorloss.Therefore,whenthe
ConsumerForashavebeenvestedwiththeJurisdictiontoawardthevalueofgoodsorservicesand

compensation,ithastobeconstruedwidelyenablingthem(ConsumerForas),todetermine
compensation,foranylossordamagesufferedbytheconsumers,whichinlawisotherwise,thewide
meaningofcompensation.Theprovision,inourconsideredopinion,enablestheconsumerstoclaim
andempowerstheConsumerForastoredressanyinjusticedonetothecomplainant.TheCommissionor
theForumintheAct,is,thus,entitledtoawardnotonlythevalueofthegoodsorservices,butalsoto
compensatetheconsumers,forinjusticesufferedbythem.Similarprincipleoflawwaslaiddown,in
GhaziabadDevelopmentAuthorityv.BalbirSingh,II(2004)CPJ12(SC)=III(2004)SLT161=(2004)5
SCC65.Intheinstantcase,thecomplainantssufferedalotofmentalagonyandphysicalharassment,at
thehandsoftheOppositeParty,asitfailedtodeliverthephysicalpossessionofunit,inquestion,tothem
(complainants),bythepromiseddatei.e.15.03.2014.Thecomplainantspurchasedtheunit,withthehope
tolivein,buttheirhopesweredashedtotheground.Tilldate,i.e.evenaftertheexpiryofaperiodof
morethan1years,fromthepromiseddate,i.e.15.03.2014,physicalpossessionoftheunit,hasnotyet
beendelivered,tothecomplainants,bytheOppositeParty.Thecomplainants,thus,underwentalotof
mentalagonyandphysicalharassment,onaccountoftheactsofomissionandcommissionofthe
OppositeParty.CompensationtothetuneofRs.50,000/ifgranted,shallbereasonable,adequateand
fair.Thecomplainants,are,thus,heldentitledtocompensation,inthesumofRs.50,000/.
13.Nootherpoint,wasurged,bytheCounselfortheparties.
14.Forthereasonsrecordedabove,thecomplaint,ispartlyacceptedwithcosts,inthefollowing
manner:
i. TheOppositePartyshallhandoverthelegalphysicalpossessionoftheunit,inquestion,withina
periodoftwomonths,tothecomplainants,fromthedateofreceiptofacertifiedcopyofthisorder.
ii. TheOppositePartyshallexecutethesale/conveyancedeedandgetitregisteredinthenameofthe
complainantsafterhandingovertheactualphysicalpossessionofunit,inquestion,asperdirection
inClause(i),above,withinaperiodofonemonththereafter.Thestampduty,registrationcharges
andallotherincidentalandlegalexpensesforexecutionandregistrationofsaledeedshallbe
bornebythecomplainants.
iii. TheOppositeParty,shallpaypenalty@Rs.10/(Rupeestenonly),persq.ft.per
month,from15.03.2014[i.e.aftercompletionof30monthsfromthedateofstartofconstruction,
asperClauses23and31(a)ofthebasictermsandconditionsannexedwiththeapplicationform
(AnnexureC1)andallotmentletterdated27.6.2011respectively]upto31.10.2015,withintwo
monthsfromthedateofreceiptofacertifiedcopyoftheorder.
iv. TheOppositePartyshallpayPenalty@Rs.10/persq.ft.permonthfordelayindelivering
possessionbeyond31.10.2015bythe10thoffollowingmonthtillactualhandingoverofphysical
possession,asdirectedinClause(i),above.
v. TheOppositePartyshallrefundanamountofRs.42,083/tothecomplainants,whichit
excessivelychargedonaccountofincreasedarea,withinaperiodoftwomonthsfromthedateof
receiptofacertifiedcopyoftheorder.
vi. TheOppositePartyisfurtherdirectedtopayRs.50,000/(RupeesFiftyThousandOnly)tothe
complainantsascompensationformentalagonyandphysicalharassmentwithintwomonthsfrom
thedateofreceiptofcertifiedcopyoftheorder.
vii. TheOppositePartyisfurtherdirectedtopayRs.50,000/tothecomplainantsascostoflitigation.
viii. Incasetheorderisnotcompliedwithinthestipulatedperiod,asindicatedabove,thentheOpposite
PartyshallpaytheamountmentionedinClause(iii)alongwithinterest@12%perannumfromthe
dateofdefault,tillpaymentandtheamountmentionedinClause(iv)fromthedateofdefaulttill
thedeliveryofpossessionandtheamountsmentionedinClauses(v)&(vi)withinterest@12%
perannumfromthedateofdefaulttillrealization,besidespaymentofcosts,tothetuneof
Rs.50,000/.

15.CertifiedCopiesofthisorderbesenttotheparties,freeofcharge.
16.ThefilebeconsignedtoRecordRoom,aftercompletion.
Pronounced.
November03,2015.

[JUSTICEJASBIRSINGH(RETD.)]
PRESIDENT

[DEVRAJ]
MEMBER

[PADMAPANDEY]
MEMBER

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