SEEMA CHANDRA Vs. MAGNUM INTERIORS PVT. LTD.

JUDGEMENT

(1.) Heard Mr. Vivek Narayan Sharma, Advocate, for the complainant and Ms. K. Iyer, Advocate, for the opposite parties.

(2.) Mrs. Seema Chandra has filed above complaint, for directing M/s. Magnum Interior Private Limited and Mr. Rahul Kalhan, to pay (i) Rs.70.00 lacs (i.e. advance, penalty and interest up to 31/1/2015) with interest @24% compounded quarterly from the date of filing the complaint till the date of refund, (ii) Rs.9228793.00 (i.e. actual damages) with interest @24% compounded quarterly from the date of filing the complaint till the date of refund, (iii) Rs.64.00 lacs (damages, penalty and interest up to 31/1/2015) with interest @24% compounded quarterly from the date of filing the complaint till the date of refund, (iv) Rs.5.5 lacs, as cost of litigation and (v) any other relief which is deemed fit and proper in the circumstances of the case.

(3.) The complainant stated that she booked Flat No.-616-B, in "Magnolias", Golf Course Road, Gurgaon, built by M/s. DLF Universal Limited, which was delivered to her in semi-finished condition as according to the terms of allotment, the complainant was to get interior work done at her own level. M/s. Magnum Interior Private Limited was company registered under the Companies, Act, 1956 and engaged in the business of Interior/finishing works of the buildings. The complainant approached the opposite parties for interior works in the aforesaid flat. After examining the flats, the opposite parties agreed to do interior works for Rs.11529300.00, within period of 220 days. They entered in to contract dtd. 1/5/2012, specifying the terms and conditions and specification of works to be done. The complainant paid Rs.57.5 lacs to the opposite parties for purchase of materials etc. However, the opposite parties did not carry out the work in time lines as promised in the contract dtd. 1/5/2012, under which they had to finish the work up to 6/12/2012 but they carried out very little work in a haphazard manner till then. M/s. DLF Universal Limited wrote a letter dtd. 16/10/2012, stating therein that in order to avail the benefit of Move-in-Rebate, the Interior works had to be finished till 31/10/2012. From 1/11/2012, M/s. DLF Universal Limited would charge delayed penalty @ Rs.125000.00 per month plus service tax. M/s. DLF Universal Limited further put a condition for payment of remaining amount as mentioned in the contract, on completion of anterior works. Due to no-completion of interior work in the above flat, the complainant was prevented to pay remaining instalments and was required to pay interest on the balance amount. The opposite parties did not do any work till October, 2012, in spite of extracting Rs.57.5 lacs. The complainant then asked to return her money with interest and penalty due to inordinate delay in completion of the work. Then the opposite parties assured to complete construction works within 2-3 months, failing which they would pay penalty, interest and damages. The complainant agreed for the proposal of the opposite parties and accordingly a fresh contract was executed on 11/11/2014 between the parties. The opposite parties also handed over Cheque No.633420 dtd. 31/1/2015 for Rs.60.00 lacs to the complainant. The opposite parties, however, again could not compete the interior works till 31/1/2015 and gave another Cheque No.633495 dtd. 12/5/2015 for Rs.10.00 lacs. These cheques were issued towards the refund of Rs.57.5 lacs with interest. Above cheques were presented for encashment on 20/4/2015 and 12/5/2015 but were dishonoured by the concerned bank on 21/4/2015 and 15/5/2015 respectively. Due to delay in completion of the work, M/s. DLF Universal Limited raised a very high demand of Rs.4417500.00 as penalty and Rs.4811293.00as interest on 16/6/2015. The complainant was suffering from financial crunch due to Kidney ailment of her husband. The complainant got valued the works done by opposite parties through M/s. Creative Design, Engineers, Interior Designers, a Government approved valuers, who inspected the site on 12/6/2015 and submitted report dtd. 17/6/2016, valuing the total work of the opposite party to Rs.319948.00. The opposite parties also obtained valuation report of their works through M/s. Collaborations Architects & Interior Designers, who submitted his report dtd. 4/7/2015 and assessed the valuation of the work to Rs.610527.00. The complaint was filed on 6/10/2015, complaining deficiency in service.