K. SELVAM S/O. KALYANITHEVAR, DOOR NO. 12 Vs. T. PANDIAN & 3 ORS. W/O P. THANGARAJ R/O. PALLIYODAI STREET, POMMAIYAGOUNDANPATTI, THENI TALUK, THENI TAMIL NADU

JUDGEMENT

(1.) Challenge in this Revision Petition, under Section 21(b) of the Consumer Protection Act, 1986 (for short "the Act"), is to order dated 19.2.2015 in First Appeal No. 66 of 2014 passed by Tamilnadu State Consumer Disputes Redressal Commission, Madurai Branch (for short "the State Commission"). By its impugned order, the State Commission allowed the Appeal in part and modified the order of the District Forum reducing the amount to be paid by the Petitioner herein to Rs. 2,00,000/- towards rectification and strengthening of the defective building, while confirming the rest of the order of the District Forum.

(2.) The brief facts as set out in the complaint are that the Complainant had applied for housing a loan of Rs. 27,20,000/- on 2.7.2011 through LIC Housing Finance Limited, Madurai, arrayed as the second Opposite Party. The loan was sanctioned with the condition that the cheque for the loan amount would be released by the Finance Company on the basis of a report to be submitted by the engineer of the Insurance Company. The Complainants were based in Chennai and entered into an unregistered agreement with the first Opposite Party on 30.7.2011 and it was agreed that the construction cost would be Rs. 33,50,000/- and on the same date an amount of Rs. 5,00,000/- was paid. On the basis of the inspection report, an amount of Rs. 24,75,000/- was handed over to the first Opposite Party. It is averred by the Complainants that they inspected the building construction work in the month of January 2012 and they informed that the construction work was of inferior quality and on further enquiry found that first and second Opposite Parties have fraudulently prepared a report stating that 75% of the work has been completed and got the loan amount released, whereas only work to the extent of Rs. 15,00,000/- worth was completed. The Complainants pleaded that the first Opposite Party received an excess amount to the extent of Rs. 9,75,000/- and they lodged an FIR vide crime number 17/2012 and sent a notice to the Opposite Parties on 22.3.2012. Thereafter, the entire building was inspected by a Chartered engineer and a report was filed that the work to the extent of Rs. 12,62,700/- has been completed. The cement mortar was also sent to the laboratory to examine the quality and it was found that it was of sub-standard quality. Thereafter, loss to the extent of Rs. 12,12,300/- was incurred by the Complainants and they had further spent an amount of Rs. 4,00,000/- for improving the strength of the building. Hence, the Complaint before the District Forum giving directions to the Opposite Parties to refund the excess amount of Rs. 12,12,300/- with interest, compensation and costs.

(3.) The Opposite parties no. 1 and 3 were set ex-parte by the District Forum.