SWARN TALWAR AND ORS. Vs. UNITECH LTD.

JUDGEMENT

(1.) THE complainants booked between July 2006 to September, 2006, residential apartments with the opposite party in its project known as Unitech Habitat, which it was seeking to develop and construct on plot No. 9, Sector PI -II (Alistonia Estate), Greater Noida and Allotment Letters/Agreements in this regard were executed between the parties where under the opposite party agreed to deliver possession of the flat to the complainants within six months of the aforesaid Allotment Letter/Agreement, subject to force majeure circumstances beyond the control of the opposite party. The opposite party, however, failed to offer possession of the flats to the complainants within the time agreed between the parties. The grievance of the complainants is that though they booked flats more than eight years ago, not only has the opposite party failed to offer possession to them, the project by itself is nowhere near completion. The complainants claim to have paid about 95% of the cost of the flat to the opposite party. Being aggrieved the complainants are before this Commission seeking refund of the amount paid by them along with interest at the rate of 18% per annum. They have also sought exemplary damages and cost of litigation from the opposite party, besides rent for the period the possession was delayed.

(2.) THE complaints have been resisted by the opposite party primarily on the grounds that (i) the amount paid by the complainants being less than Rs. 1,00,00,000/ - in each case, this Commission lacks pecuniary jurisdiction to entertain the complaints, (ii) as per clause 4(c) of the allotment letter the opposite party is required to pay only the holding charges calculated at Rs. 5/ - per sq. ft. per month of the super area for the period of delay in offering delivery of the flat beyond the agreed period, (iii) the delay is attributable to a recession in the economy, affecting the availability of the resources such as labour and raw materials, (iv) there was major disruption in the construction activity of the opposite party due to massive agitation and strikes by farmers whose lands were acquired by NOIDA, which resulted in slackening and availability of supply of raw material, (v) there was acute shortage of labour, underground water and raw material besides delayed approval from Greater Noida Authority and (vi) In terms of clause 4(e) of the allotment letter the opposite party is entitled either to offer an alternative property or refund the amount paid by the complainant with simple interest at the rate of 10% per annum without damages or other compensation. It is also alleged that notification dated 14 -09 -2006 issued by Government of India imposed restrictions and prohibitions on new projects or activities or on the extension or modernization of the existing projects without prior environmental clearances and the procedure for obtaining such clearances led to delay in construction schedule. It is also claimed that the Dharna by farmers who were agitated on account of acquisition of their land, in front of the projects of various builders also halted the construction work and there was default in payment of instalments by several flat buyers, dues against whom amounted to nearly Rs. 57,00,00,000/ -.

(3.) THE relevant clauses of the Allotment Letter/Agreement read as under: