Summary
For delayed flats in the DLF Valley project, overlapping and unsupported compensation heads were replaced with the Court’s specified interest and consolidated-cost directions. Possession claims attracted 9% interest after the three-year contractual period until two months after the possession offer, with maintenance safeguards and ₹50,000 consolidated compensation/costs. Refund claims were reduced to 9% interest with ₹35,000 costs, subject to the distinct transferee directions in the operative order.
Issues
- Whether multiple compensation heads for the same possession delay were sustainable.
- What interest, possession and refund directions should govern these project-specific claims.
Held
- Consumer compensation must rest on recognised principles and demonstrated loss, rather than a rule-of-thumb bank-loan rate or overlapping awards for the same default. Exceeding agreed delay consequences required exceptional strong reasons; punitive damages were unwarranted here. (¶ 14–19)
- Possession offers had to include occupancy certificates, and the developer and maintenance agency were to address non-occupation-related maintenance within two months. Interest at 9% ran through two months after the offer in all situations, with ₹50,000 consolidated relief per complaint. (¶ 19)
- For possession transferees, 9% interest commenced after three years from agreement or from transfer, whichever was later. (¶ 19)
- Refund interest was reduced to 9% from deposits until refund. For transferred flats, the refund-case operative direction fixed commencement at three years after agreement or transfer, whichever later; ₹35,000 costs remained payable. (¶ 23–26)
Result
Orders modified. Possession cases: 9% interest after three years from agreement through two months after offer, occupancy certificate, maintenance within two months and ₹50,000 consolidated relief per complaint; transferee start is later of three-year expiry and transfer. Refund cases: 9% from deposits to refund, with transferred-flat start as paragraph 24 directs; ₹35,000 costs maintained. Refund and costs payable within two months.