Summary
A flat buyer had deposited Rs. 21.18 lakh with a builder that failed to complete construction within the roughly two years generally expected. The Madhya Pradesh State Consumer Disputes Redressal Commission ordered a refund of the full Rs. 21.18 lakh with 9% simple interest from the last instalment of 19.01.2015, plus Rs. 5,000 costs. The National Consumer Disputes Redressal Commission partly reversed this, reducing the refund to Rs. 16.18 lakh with 9% interest. In a short order the Supreme Court held that the National Commission erred in partially reversing the State Commission's order. It set aside the National Commission's order, restored the State Commission's order, and directed the builder to refund within two months if it had not already paid.
Issues
- Whether the National Consumer Disputes Redressal Commission was justified in reducing the refund awarded by the State Commission to a flat buyer for the builder's failure to complete construction
Held
- The State Commission found that the builder had received Rs. 21.18 lakh but failed to complete the flat within a reasonable time, generally about two years. It ordered a full refund with 9% simple interest from the last instalment, plus costs. (¶ 2)
- The National Commission erred in partially reversing that order by reducing the refundable amount. The State Commission's order was restored. (¶¶ 3, 4)
Result
Appeal disposed of; the National Commission's order was set aside and the State Commission's order of 15.10.2020 restored, with the respondent directed to refund Rs. 21.18 lakh with 9% interest and costs within two months if not already paid.