VEERARAGHAVAN Vs. K BACHAMMAL

JUDGEMENT

(1.) The complainant and the opposite party entered into a construction agreement to develop the complainant's property into flats. The complainant paid a sum of Rs.25,000/- at the time of the agreement. The construction should have been completed within 15 months from the date of starting of the construction. A general power was given to the opposite party to take all necessary steps towards construction. Even after 3 years, the construction work has not been started. The opposite party agreed to pay rental compensation of Rs.3,000/- per month commencing from June, 1998. But the opposite party failed to make payment regularly, but was paying only once in 3 months or 8 months. As against 43 months payment, the opposite party had only paid 6 payments. As a result, the complainant was put to much mental hardship and financial strain. The complainant would have enjoyed a rental income of Rs.2 lakhs if the opposite party handed over the flats within two months of commencement of the construction. The complainant issued a notice and cancelled the agreement. The opposite party failed to hand over the documents pertaining to the property. Hence, the complaint.

(2.) The opposite party contended that the complainant's remedy is to move a Civil Court for specific performance. There was no agreement to hand over the building within 15 months from the date of entering into the agreement. The opposite party could commence the project only if the permission is accorded by the CMDA authorities. The opposite party was regular in payment of rental compensation. On account of the act of State, he was prevented from the commencement of the construction. Hence, the opposite party contended that there is no deficiency in service.

(3.) The lower Forum directed the opposite party to pay a sum of Rs.37,000/- and return all the documents pertaining to the scheduled property and to remove the hoardings and watchman shed and to pay a rent of Rs.1,000/- from the date of cancellation of agreement till removal of the hoardings, watchman and watchman's shed.