VidhiSangh

Supreme Court of India · 24/08/2022

RAVINDER SINGH CHANA versus KHANNA PROPERTIES AND INFRASTRUCTURES PVT. LTD.

[2022] 7 S.C.R. 136 · 2022 INSC 1319

AI-generated headnote. Verify against the judgment before relying on it. Paragraph numbers refer to the judgment.

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

  1. 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

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.

Judgment PDF: Supreme Court of India, [2022] 7 S.C.R. 136.