An analysis of the Judgment passed by the Maharashtra State Consumer Disputes Redressal Commission by Adv. R. P. Rathod.
In a Landmark Order the Maharashtra State Consumer Commission
recently directed a developer to shell out Rs. 20 lakhs at the rate of
Rs. 2,000 a day for a delay in
giving possession of a Shop Premises to a purchaser.
The significance of the order passed by a three-member bench
comprising president S B Mhase, S R
Khanzode and D Dhamatkar —is that it is “among the first times’’ that “per
day” damage, as was specified in the Sale Agreement, has been charged.
Often, builders have an agreement clause that assures buyers a daily
damage for delayed possession, but few buyers, if any, invoke it. The judgment comes as a boost to purchases of flats and other property across the State of Maharashtra.
The commission has further held that, “To issue notice for delivery of possession without an Occupation Certificate was an illegal act. We find that there is no ground to justify
the delay.”
Dedhia possessed a shop and godown in Rajhans building in Thane as a
tenant. The original landlord sold the premises to Padmavati Enterprises who
decided to redevelop the property and agreed to give a shop of 366 sq ft
to Dedhia at a subsidized rate. The agreement was made in June 2005 to hand over possession in October
2005, but the possession was given in June 2007 that too without
an occupation certificate. As a result, Dedhia claimed damages for the delay at Rs. 2,000 per day as stipulated in the agreement.
Dedhia’s other grievance was that a water connection wasn’t given to
him. He took up the matter with the Thane District Consumer Forum, which
ordered the builder to pay him Rs. 20,000 as an additional compensation for the
“mental agony and financial loss’’.
Adv. R. P. Rathod
points out that,
there have been innumerable decisions in
Consumer Forums concerning builders and
flat owners. These decisions have been rendered mostly on the ground of “Deficiency in Service”. Which expression has been defined
in section 2(1) (g) and section 2(1) (o) of the Consumer Protection Act. In cases of delay in giving possession of the flats,
the Consumer Forums have directed the refund of the amount deposited by the potential purchasers with the builder/
housing board along with 18 per cent.
Adv. R. P. Rathod
further states that in another case, besides issuing order for refund of the entire amount of Rs. 1,09,000/- deposited and payment of 18 per cent interest, the builder
was also ordered to pay Rs. 1 lakh as further compensation.
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