INDRA STELLS PVT. LTD Vs. PARSVNATH DEVELOPERS LTD

JUDGEMENT

(1.) The present Consumer Complaint has been filed under Sec. 21 of the Consumer Protection act, 1986 (for short 'the act') by M/s Indra Steels Pvt. Ltd. through its Director Mr. Vijay aggarwal (hereinafter referred to as the Complainant) against Opposite Party, M/s. Parsvnath Developers Limited (hereinafter referred to as the Developer), seeking refund of the amount paid towards purchase of Flat alongwith interest and costs as the Opposite Party Developer failed to hand-over the possession of the Flat booked by them in the Project launched by the Developer in the name and style of 'Parsvnath Privilege' located at Plot No. 11, Sec. Pi, Greater Noida, Uttar Pradesh.

(2.) It has been averred in the Complaint that the Opposite Party Developer launched a Residential Group Housing Project in the name and style of 'Parsvnath Privilege' located at Plot No. 11, Sector Pi (Chorosia Estate), Greater Noida, UP. Mr. Vijay aggarwal being Director of M/s Indra Steels Pvt. Ltd. (hereinafter referred to as the Complainant) booked a residential flat for his personal use in the said Project. Flat No. T8-603, Tower No. 8 having an super area 1855 sq. ft. was allotted to the Complainant at a basic sale price of 52,86,750/-. Flat Buyers agreement (hereinafter referred to as the agreement) was executed between the Parties on 9/8/2007. as per Clause 10(a) of the agreement, the construction of the said flat was to be completed within 36 months from the date of commencement of construction of a particular block in which flat is located. Vide letter dtd. 10/6/2010, the Opposite Party Developer informed the Complainant about Re-Scheduling of Construction Plan and assured that the Project would be completed by March 2012. The Complainant had opted for Construction Linked Payment Plan and had deposited 50,13,577.50ps. upto 2/7/2013 as per demand of the Opposite Party Developer. Despite that the Opposite Party Developer miserably failed to deliver the possession of the Flat within stipulated period. It is averred by the Complainant that the Opposite Party Developer had utilized the Complainant's money in other Projects and also transferred the funds of the present Project to other Projects in pipeline. The Project is still incomplete and the Developer has even not received the Occupancy Certificate. The Complainant raised queries regarding handing over the possession, but the Developer did not respond to Complainant's queries. He has no trust on the Opposite Party Developer and is no longer interested in having possession of the Flat. alleging deficiency in service and Unfair Trade Practice on the part of the Opposite Party Developer, the Complainant has filed the present Consumer Complaint with the following prayer:

(3.) The Complaint was resisted by the Opposite Party Developer by filing its Written Statement in which the Opposite Party Developer took a preliminary objection that the Complainant has invested money for his economic purpose and is, therefore, not a Consumer under Sec. 2(1)(d) of the act. The Opposite Party Developer admitted that the Complainant was allotted Flat bearing No. T8-603 in the Project on 23/2/2007 under Construction Linked Payment Plan and has deposited 50,42,014.50ps. (Rupees Fifty Lakhs Forty Two Thousand Fourteen and fifty paisa only) as on 30/3/2018. It was stated that a Flat Buyer agreement was executed between the Complainant and the Developer and they are bound by the terms of the agreement. It was further stated that the delay in construction of Project is caused due to global recession in the real estate sector and this was duly informed to the Complainant vide letter 20/6/2010. The Project is under way and is not abandoned by the Developer. The delay in construction is due to the reasons which were beyond the control of the Developer, however, they are ready to compensate the Complainant as per Clause 10(c) of the agreement, which reads as under:-