CHANDIGARH HOUSING BOARD versus M/S. PARASVANATH DEVELOPERS PVT. LTD. & ANR.

CHANDIGARH HOUSING BOARD versus M/S. PARASVANATH DEVELOPERS PVT. LTD. & ANR.

Clause 9(c) did not apply because the developer never commenced construction and the breach was attributable to both CHB and the Developer; the awards for mental harassment and litigation costs were not the specific per sq. metre compensation under Clause 9(c) and thus could not be imposed solely on the Developer; the arbitrator's apportionment of liability (70:30 in favour of Developer:CHB) and the escrow arrangement supported payment by Developer and CHB in that ratio; the National Commission's enhancement of interest to 10% was a valid exercise of discretion and not interfered with.

Parties
Appellant: Chandigarh Housing Board; Respondent: M/s. Parasvanath Developers Pvt. Ltd.; Complainant: Respondent No.2
Jurisdiction
India
Judgment Date
17 December 2019
Procedural Posture
Civil Appeal No. 10748 of 2016 / Judgment on Appeal From National Consumer Disputes Redressal Commission Order Dated 11.05.2016
Outcome
Appeal dismissed
Legal Topics
Tripartite Agreement Interpretation, Arbitration Award Apportionment, Refund and Interest, Compensation for Mental Harassment, Litigation Costs
Consumer Protection Real Estate Tripartite Agreement Interpretation Arbitration Award Apportionment Refund and Interest Compensation for Mental Harassment Litigation Costs

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Parties

Chandigarh Housing Board

Appellant

M/s. Parasvanath Developers Pvt. Ltd.

Respondent

Respondent No.2

Complainant

Procedural Posture

Civil Appeal No. 10748 of 2016 / Judgment on Appeal From National Consumer Disputes Redressal Commission Order Dated 11.05.2016

Legal Issues

  1. 1 Whether amounts awarded for mental harassment and litigation costs fall within Clause 9(c) of the Tripartite Agreement so as to be payable solely by the Developer or whether they should be apportioned 70:30 between Developer and CHB
  2. 2 Whether the interest rate on the refunded principal could be enhanced from 9% p.a. to 10% p.a. by the National Commission

Ratio Decidendi

Clause 9(c) did not apply because the developer never commenced construction and the breach was attributable to both CHB and the Developer; the awards for mental harassment and litigation costs were not the specific per sq. metre compensation under Clause 9(c) and thus could not be imposed solely on the Developer; the arbitrator's apportionment of liability (70:30 in favour of Developer:CHB) and the escrow arrangement supported payment by Developer and CHB in that ratio; the National Commission's enhancement of interest to 10% was a valid exercise of discretion and not interfered with.

Court Disposition

Appeal dismissed

Orders

  • Appeal dismissed
  • CHB and M/s. Parasvanath Developers Pvt. Ltd. directed to pay the principal sum of Rs. 1,03,31,250/- to the Complainant with interest at 10% p.a.