KASHIAMMA Vs. M HUSSAIN

JUDGEMENT

(1.) This complaint has been filed under Sec.12 of the C. P. Act to issue direction to O. Ps. jointly and severally to pay to the complainant a sum of Rs.5,00,000/- received by them as advance under agreement of sale dated 10.7.1997 with interest thereon at 20 per cent per annum from the date of the agreement till payment and to pay a further sum of Rs.10,00,000/- as liquidated damages for breach of contract committed by O. Ps. with a cost of Rs.5,000/-.

(2.) The allegations made in the complaint are that O. Ps. proposed to construct a multi-storey apartment complex known as "golden Apartments" by advertising in leading dailies. The complainant on coming to know of this, appraoched O. Ps. with an offer to buy one residential apartment in the proposed complex. After mutual discussion the complainant and O. Ps. entered into an agreement of sale dated 10.7.1997 wherein O. Ps. had agreed to sell one residential apartment with undivided share for a total sale consideration of Rs.10,00,000/-. As on the date of the agreement the complainant paid a sum of Rs.5,00,000/- in cash to O. P.3 namely, Mohd. Iqbal. The receipt was issued on 14.7.1997 by O. P.3 in addition to the acknowledgement made in the agreement of sale. As per the terms of the agreement of sale the complainant was required to pay the balance consideration of Rs.5,00,000/- after the sale deed was registered in 4 instalments as detailed in clause 2 of the agreement of sale. As per the terms of the agreement O. Ps. were required to execute sale deed and register the same within 18 months from the date of the agreement i. e. , on or before 10.1.1999. The agreement further stated that the registration of the sale deed is subject to the condition that the same is done after the construction work of entire apartment/complex is completed. It was further agreed that the construction of the entire complex should be completed within 18 months from the date of the agreement failing which the vendor is liable to refund the advance amount paid with interest at 20 per cent from the date of agreement and also to pay penalty of Rs.10,00,000/-.

(3.) The complainant further submitted in the complaint that even after the expiry of the time stipulated in the agreement O. Ps. have failed to fulfill their obligations under the agreement. The construction of the apartment was incomplete and it has reached up to the roof slab of the first floor.