On 24 Aug 2020, The Supreme Court of India, in the case of Wg. Cdr. Arifur Rahman Khan, Aleya Sultana, and Ors. v. DLF Southern Homes Pvt. Ltd. (now known as BEGUR OMR Homes Pvt. Ltd.)& Ors. comprising of Dr. Dhananjaya Y Chandrachud and Justice K.M Joseph in its Judgment directed the first and second respondent, as a measure of compensation, pay an amount calculated at the rate of 6 percent simple interest per annum to each of the appellants, except for eleven appellants who entered into specific settlements with the developer and three appellants who have sold their right, title and interest under the ABA.
The National Consumer Disputes Redressal Commission dismissed a consumer complaint filed by 339 flat buyers, accepting the defense of DLF Southern Homes Pvt. Ltd. and Annabel Builders and Developers Pvt. Ltd. that there was no deficiency of service on their part in complying with their contractual obligations and, that despite a delay in handing over the possession of the residential flats, the purchasers were not entitled to compensation in excess of what was stipulated in the Apartment Buyers Agreement.
Supreme Court after considering the submissions from the Dealer and the Complainant in its findings stated that the dismissal of the complaint by the NCDRC was erroneous. The flat buyers are entitled to compensation for delayed handing over of possession and for the failure of the developer to fulfill the representations made to flat buyers in regard to the provision of amenities. The reasoning of the NCDRC on these facets suffers from a clear perversity and patent errors of law.
The Supreme Court after allowing the appeals in part, set aside the impugned judgment and order of the NCDRC by dismissing the consumer complaint and issued the following directions:
- Save and except for eleven appellants who entered into specific settlements with the developer and three appellants who have sold their right, title and interest under the ABA, the first and second respondents shall, as a measure of compensation, pay an amount calculated at the rate of 6 percent simple interest per annum to each of the appellants. The amount shall be computed on the total amounts paid towards the purchase of the respective flats with effect from the date of expiry of thirty-six months from the execution of the respective ABAs until the date of the offer of possession after the receipt of the occupation certificate;
- The above amount shall be in addition to the amounts which have been paid over or credited by the developer at the rate of Rs 5 per square foot per month at the time of the drawing of final accounts; and
- The amounts due and payable in terms of directions (i) and (ii) above shall be paid over within a period of one month from the date of this judgment failing which they shall carry interest at the rate of 9 percent per annum until paid.
Read Judgment @Latestlaws.com
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