Summary
Four appeals under Section 23 of the Consumer Protection Act, 1986 by flat buyers whose consumer complaints against the lender bank's loan recall notices had been rejected by the NCDRC were disposed of on a settlement between the borrowers, the builder and the bank, recorded in the Court's orders of 23.10.2024 and 06.11.2024 and fully complied with. No question of law was decided; the Court issued closing directions on the loan records, possession, acknowledgment of payment and withdrawal of pending recovery and RERA proceedings.
Issues
- Whether the settlement terms recorded in the orders dated 23.10.2024 and 06.11.2024 had been complied with so that the appeals could be closed.
- What consequential directions were needed on the bank's loan account records, handing over of possession by the builder, acknowledgment of payments and pending proceedings before the DRT and RERA.
Provisions considered
- Section 23, Consumer Protection Act, 1986The appeals were filed under this provision against the NCDRC's common order of 02.01.2023 rejecting the flat buyers' complaints; the Court did not decide the merits but disposed of the appeals on the settlement arrived at between the parties. (¶¶ 1, 9)
Held
- No question of law was decided. The borrowers, the builder and the bank settled their tripartite dispute on terms recorded by the Court (upfront payment of the outstanding principal, waiver of charges and a 30% discount on pre-EMI interest by the bank, the builder bearing 50% of the outstanding pre-EMI, interest frozen as of 30.11.2024, and the borrowers paying the balance 5% sale consideration to the builder); the affidavits showed full compliance by all three parties and the bank certified that nothing further remained due. (¶¶ 2, 3, 4, 5)
- Since the borrowers made upfront payment under orders of the Court, the loan accounts were to be closed as repaid or fully paid up rather than as a 'settlement', and the bank was to make the necessary corrections in its records. (¶¶ 6, 7, 8)
- The builder was directed to hand over possession of the fully completed apartments by 31.03.2025 and to issue written acknowledgment of the amounts received; the bank was to withdraw recovery proceedings before the DRT or any other forum, and the appellants were to withdraw any proceedings before the RERA authority, bringing complete quietus to the litigation. (¶¶ 7, 8, 9)
Result
Appeals disposed of in terms of the settlement; bank to record the loans as repaid and withdraw DRT or other recovery proceedings; builder to hand over completed possession by 31.03.2025 and acknowledge payments in writing; appellants to withdraw RERA proceedings; all matters between the parties closed.