07 June 2024 Consumer Complaints >> Civil & Consumer Law   |   Property/Real Estate Law >> Property & Real Estate  

In a recent consumer dispute, a court in India has ruled in favor of a builder while rejecting the flat buyers' request for flat allotment and compensation. However, the court also directed the builder to refund the initial payment made by the buyers with interest.

The case involved JMD Ltd., a builder, and Ms. Neetu Juneja and Mrs. Gunjit Juneja, who had booked a flat in JMD's Garden project in 2004. The buyers had made a total payment of Rs. 15,45,562 towards the flat priced at Rs. 35 lacs.

The buyers claimed that the construction progress on the project was unsatisfactory. They further alleged that the builder did not possess the necessary license or sanctioned layout plan for the project. Additionally, they argued that the builder pressured them into signing an unfair agreement and later wrongfully cancelled their allotment in 2007, refunding the initial payment. The buyers further sought the court's order to reinstate their flat allotment and award them compensation for the mental strain they endured.

The builder countered these claims by stating that the flat buyer agreement had a construction-linked payment plan. They argued that the buyers defaulted on the installments after the third stage of construction. JMD Ltd. maintained that the cancellation of the allotment and the subsequent refund were entirely legal and justified based on the terms of the agreement. The builder also challenged the validity of the complaint due to a time limitation, citing the buyers' prior approach to a different tribunal.

The court sided with the builder on the issue of flat allotment and compensation. The court concluded that the buyers' failure to adhere to the payment schedule as per the agreement constituted a breach of contract. This breach gave JMD Ltd. the legal right to cancel the allotment.

However, the court also observed that the builder failed to provide any evidence to disprove the buyers' claims regarding the lack of a license or sanctioned layout plan. Since the cancellation was initiated by the builder, the court directed JMD Ltd. to refund the initial payment of Rs. 15,45,562 along with 6% interest from 2007, provided the buyers had not already encashed the refund amount.

  COMPANIES ACT, 2013    Monopolies and Restrictive Trade Practices Act, 1969