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Ravi Kiran Monigari v/s M/s Safeway Infra a partnership Firm Rep. by its Managing Partner IVSN Raju & Others


Company & Directors' Information:- J T L INFRA LIMITED [Active] CIN = L27106CH1991PLC011536

Company & Directors' Information:- H N COMPANY INFRA PRIVATE LIMITED [Active] CIN = U45201NL2005PTC007743

Company & Directors' Information:- T AND T INFRA PRIVATE LIMITED [Active] CIN = U45200PN2012PTC144893

Company & Directors' Information:- S R C INFRA PRIVATE LIMITED [Active] CIN = U45200KA2014PTC073052

Company & Directors' Information:- S G F INFRA PRIVATE LIMITED [Active] CIN = U45400JK2013PTC003837

Company & Directors' Information:- R E INFRA PRIVATE LIMITED [Active] CIN = U74999MH2007PTC175255

Company & Directors' Information:- M Y C INFRA PRIVATE LIMITED [Active] CIN = U45400UP2013PTC055996

Company & Directors' Information:- A R INFRA PRIVATE LIMITED [Active] CIN = U45202AS2008PTC008561

Company & Directors' Information:- R K INFRA(INDIA) PRIVATE LIMITED [Active] CIN = U45201KA2010PTC054009

Company & Directors' Information:- I V INFRA PRIVATE LIMITED [Active] CIN = U45309PB2008PTC031932

Company & Directors' Information:- A H INFRA LIMITED [Active] CIN = U31501WB2010PLC155151

Company & Directors' Information:- V & H INFRA PRIVATE LIMITED [Active] CIN = U45203MH2008PTC181787

Company & Directors' Information:- S R U INFRA PRIVATE LIMITED [Active] CIN = U70102UP2014PTC065614

Company & Directors' Information:- S G U INFRA PRIVATE LIMITED [Active] CIN = U70102UP2015PTC071682

Company & Directors' Information:- SAFEWAY CORPORATION LIMITED [Active] CIN = U45200TG2014PLC096317

Company & Directors' Information:- N. S. INFRA PRIVATE LIMITED [Active] CIN = U45200UP2021PTC142424

Company & Directors' Information:- M G D INFRA PRIVATE LIMITED [Active] CIN = U45400UP2015PTC069886

Company & Directors' Information:- Z INFRA LIMITED [Strike Off] CIN = U45201OR2009PLC010795

Company & Directors' Information:- S B M INFRA PRIVATE LIMITED [Strike Off] CIN = U45201TR2010PTC008299

Company & Directors' Information:- S S P L INFRA PRIVATE LIMITED [Strike Off] CIN = U45201OR2011PTC013469

Company & Directors' Information:- Y. M. INFRA PRIVATE LIMITED [Active] CIN = U45400MH2010PTC211055

Company & Directors' Information:- R V G INFRA PRIVATE LIMITED [Strike Off] CIN = U70200DL2011PTC219732

Company & Directors' Information:- S P G N INFRA PRIVATE LIMITED [Active] CIN = U45200AP2015PTC096326

Company & Directors' Information:- Y. C. INFRA PRIVATE LIMITED [Active] CIN = U45400WB2010PTC151352

Company & Directors' Information:- J S N INFRA (INDIA) LIMITED [Active] CIN = U45400UP2012PLC050189

Company & Directors' Information:- R V J INFRA PRIVATE LIMITED [Active] CIN = U45200DL2013PTC249181

Company & Directors' Information:- A R INFRA (INDIA) PRIVATE LIMITED [Active] CIN = U70109MP2007PTC020049

Company & Directors' Information:- G K V INFRA PRIVATE LIMITED [Strike Off] CIN = U45200PN2011PTC141814

Company & Directors' Information:- L G INFRA PRIVATE LIMITED [Strike Off] CIN = U45400TN2014PTC095310

Company & Directors' Information:- J G INFRA PRIVATE LIMITED [Active] CIN = U45209CH2012PTC034095

Company & Directors' Information:- E & P INFRA PRIVATE LIMITED [Strike Off] CIN = U74999DL2014PTC271401

Company & Directors' Information:- P M D INFRA PRIVATE LIMITED [Active] CIN = U45201GJ2007PTC050762

Company & Directors' Information:- V & T INFRA PRIVATE LIMITED [Strike Off] CIN = U70100TG2008PTC061671

    C.C. No. 72 of 2017

    Decided On, 28 November 2017

    At, Telangana State Consumer Disputes Redressal Commission Hyderabad

    By, THE HONOURABLE MR. JUSTICE B.N. RAO NALLA
    By, PRESIDENT & THE HONOURABLE MR. PATIL VITHAL RAO
    By, JUDICIAL MEMBER

    For the Complainant: V. Appa Rao, Advocate. For the Opposite Parties: Notice sent to the Ops returned with an endorsement ?refused/unclaimed?.



Judgment Text

Oral Order: (B.N. Rao Nalla, President)

This is a complaint filed under section 17(1)(a)(i) of the Consumer Protection Act, 1986 by the Complainants to direct the opposite parties to handover the possession of Villa No.697 forthwith, comprise of 2030 sft with ground and first floor on completion in all aspects including common amenities of layout including club house as per norms, besides providing occupancy certificate; to pay compensation with interest @ 16% per annum on the amount of Rs.35,00,000/- from 01.01.2016 till handover of Villa; to pay penalty with interest @ 16% per annum on the amount of Rs.4,00,000/- from 01.07.2016 till completion of common amenities; to pay compensation of Rs.5 lakhs and costs of Rs.50,000/-.

2. In brief, the facts of the case are that the Opposite Parties had launched the project of "M/s Symphony Park Homes' and the complainants were allured by the Opposite Parties, who depicted the benefits of the said project. On believing the glorified benefit of the project of the Opposite Parties, the complainants entered into agreement of sale dated 26.06.2013 for the purchase of Plot No.697, admeasuring 150 sq.yards wherein the opposite parties promised to construct independent villa comprise of 2030 sft of super built up area consists of Ground+First Floor for a sale consideration of Rs.35,00,000/- and agreed to develop specified common amenities as specified in the said agreement. In pursuant to the agreement of sale dated 26.06.2013, the complainants paid total amount of Rs.35,00,000/- by 12.07.2013. After receipt of the entire amount, the opposite parties executed sale deed dated 12.07.2013 thereby conveyed title over the schedule land. According to Clause 5.8 of the Agreement, possession of the villa was to be delivered within a period of 18 months from the date of the Agreement i.e., 26.06.2013 with a grace period of 6 months subject to payments received from the purchaser. However, the opposite parties till the completion of the stipulated period did not complete the villa as promised. Further, when the complainants were visited the opposite parties about their failure to deliver the possession of the villa, while admitting their failure in completion of construction of Villa promised to pay compensation @ 16% over the payments made by the complainant for the delayed period w.e.f., 01.01.2016 till the date of handing over of the possession. Further, agreed to pay compensation @ 16% w.e.f., 01.07.2016 on the amount of Rs.4,00,000/- paid towards common amenities When the opposite parties failed to pay the compensation for the delayed period, the complainants got issued legal notice dated 19.03.2017 to the opposite parties. Despite receipt of the huge payment, the Opposite Parties failed to show their bonafides and did not commence the construction work. The Opposite Parties were liable to pay compensation for delay in handing over of possession, as per the Agreement but they failed to make any kind of payment to the complainants. Due to the aforesaid act and conduct of the Opposite Parties, they were deficient, in rendering service, as also, indulged into unfair trade practice. When the grievance of the complainants was not redressed, left with no alternative, they filed the present complaint with aforesaid reliefs as mentioned in paragraph No.1 supra.

3. Despite the fact that the notices were sent to their last known addresses they were returned with postal endorsement ‘ refused/unclaimed and hence the notices sent to them were deemed to be served.

4. The complainants in proof of their case filed the affidavit evidence of the complainant no.2 and got Exs. A1 to A13 marked.

5. The counsel for the complainant present and filed written arguments. Heard the counsel for the complainant.

6. The points that arise for consideration are:

1. Whether the opposite parties rendered deficient service in the matter of completion of construction of the Villa?

2. To what relief?

7. It is an undisputed fact that the complainants purchased plot No.697 admeasuring 150 sq.yards under sale deed dated 12.07.2013 with a promise that the opposite parties to construct a Villa comprise of 2030 sft of super built up area consists of Ground + First floor for a sale consideration of Rs.35,00,000/- besides development of common amenities as mentioned in the agreement of sale dated 26.06.2013 marked as Ex.A1. Pursuant to the agreement of sale, the complainant paid entire sale consideration of Rs.25,00,000/- as evidenced vide Agreement of Sale dated 26.06.2013. The complainant also paid an amount of Rs.10,00,000/- to the opposite parties but the complainant did not specify why he had paid the said amount. As per clause G) of the said agreement discloses that the opposite parties agreed to sell the said Villa No.697 admeasuring 150 sq.yards proposed to be constructed thereon comprising of Ground + first floor with a total sale consideration of Rs.25,00,000/-. There was also clause 5.8 stipulates the opposite parties to complete the House construction within 18 months from the date of the agreement of sale with a grace period of 6 months subject to payments received from the purchaser. It is also to be seen that as per clause 5.9 if the builder failed to complete the construction within the stipulated period as mentioned in the agreement of sale, the builder shall be liable to pay to the purchaser @ Rs.2/- per sft per month by way of liquidated damages.

8. The complainants alleging that the opposite parties did not complete the construction and hand over the same within the stipulated period as mentioned in the agreement of sale. They also alleged that the opposite parties promised to pay compensation @ 16% on the amounts paid by the complainant w.e.f. 01.01.2016 and also promised to pay compensation @ 16% on the amount of Rs.4,00,000/- paid towards common amenities in case they failed to complete the common amenities by 30.06.2016. In support of the said contention of the complainant, he filed Ex.A9 dated 12.09.2015 which reads as under:

That in view of the apprehensions expressed by the customers regarding the delay in completion of the Symphony ParkHomes who assembled at our Corporate Office on 1st August, 2015, Safeway Infra wishes to clarify and confirm that we shall abide by all the terms and conditions of the development agreement and the timeline for completion of the villas in terms of the respective Agreements of Sale (AOS).

Your villa No.697 should be handed over to you by 31.12.2015 as per this agreement and be delivered by providing all basic amenities such as water, electricity, drainage, roads compound wall and physical security required for occupation of the said villas by 31st December, 2015 along with basic amenities such as water, electricity, drainage, roads compound wall and physical security required for occupation of the same, without any grace period thereto. In the event of Safeway infra failing to deliver the same, Safeway Infra will pay penalty @ 16% per annum in terms of the Agreements of Sale on the actual amounts paid by the customer in respect of the said villa on or before 5th of every month effective from Jan 1st 2016. It is agreed by the villa owner that they will pay the installment amounts as documented in AOS subject to construction progress and on the date of handover of villa keys all the dues need be cleared to the undersigned as per AOS.

Safeway Infra hereby assures villa owners to complete all common amenities including solar fencing in Symphony Park Homes and hand over the same to the Association of the purchasers of villas by the end of June, 2016, failing which Safeway Infra Agrees to pay the penalty charges @ 16% p.a. on the amenities amount of Rs.4,00,000/- paid to villa owner before 5th of every month starting from July 2016, till handover of all the amenities as per AOS.

9. From the above said undertaking the opposite parties are bound to pay the compensation @ 16% per annum over the amount of Rs.35,00,000/- w.e.f., 01.01.2016 till handover of villa and also pay penalty @ 16% per annum on the amount of rs.4,00,000/- paid towards amenities w.e.f., 10.07.2016 till completion of common amenities.

10. Admittedly, when the opposite parties failed to complete the construction and deliver possession of the villa or failed to pay the compensation as per their own undertaking, the complainant gave Ex.A11 legal notice dated 19.03.2017 requesting the opposite parties to complete the villa as per specifications mentioned in the agreement of sale dated 26.06.2017 and handover the villa besides payment of compensation as agreed in the undertaking given by the opposite parties together with compensation of Rs.5 lakhs. Obviously, the opposite parties failed to complete and handover the possession of the Villa or paid the compensation as per the documents executed by them wherein they had to complete the construction and deliver the possession within 18 months with a grace period of 6 months from the date of execution of agreement of sale and also undertaking of the opposite parties. As the complainants sought for relief of possessi

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on of the Villa, we are inclined to direct the opposite parties to complete the construction of Villa No.697 comprise of 2030 sft of super built up area with Ground Floor + First floor in all respects including the common amenities as agreed in the agreement of sale and handover possession thereof to the complainants. The opposite parties also liable to pay compensation as per their undertaking Ex.A11 with compensation of Rs.1,00,000/-. In the result the complaint is allowed in part holding and directing the opposite parties no.1 to 5 liable jointly and severally to complete the construction of Villa No.697 comprise of 2030 sft of super built up area with ground + first floor including the common amenities as agreed upon in the agreement of sale and handover possession thereof to the complainant. The opposite parties are further directed to pay the compensation as agreed by them in their undertaking Ex.A9 together with compensation of Rs.1,00,000/- and costs of Rs.5000/-. Time for compliance four weeks.
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