Summary
The developer could not confine compensation for delayed flat possession to the meagre contractual amount or an arbitrary common cut-off date. The additional award of 6% annual interest was upheld. Under the operative directions, interest continued until each buyer was offered possession, with the date to be verified buyer by buyer in execution. Filing a representative consumer complaint did not justify withholding possession.
Issues
- Whether the contractual delay clause limited the consumer forum’s power to award just compensation.
- Whether interest could be stopped for all buyers on 31 July 2016.
Provisions considered
- Delay compensation of Rs.3 per square foot per month, Flat purchase agreementThe one-sided and inadequate contractual amount did not constrain the consumer forum’s jurisdiction to award just compensation. (¶¶ 2, 8–11)
Held
- The stipulated Rs.3 per square foot per month did not adequately recompense buyers who had invested but had not received possession on time. Additional interest at 6% per annum was reasonable, including in view of the occupation certificate being obtained over two years after possession was due. (¶ 8–11)
- Moving a representative consumer complaint did not disentitle purchasers to possession or justify the developer’s withholding it. The record did not support stopping interest uniformly on 31 July 2016. (¶ 12–17)
- The operative order continued 6% annual interest until each individual purchaser was offered possession. The NCDRC in execution was to verify that date for every buyer, and liability would cease on that respective offer date. (¶ 18)
Result
Buyers’ appeal allowed and developer’s appeals dismissed. Common interest cut-off modified to the respective dates of offers of possession, subject to execution-stage verification; pending applications disposed of.