PARSVNATH DEVELOPERS LTD. versus GAGANDEEP BRAR AND ANOTHER

PARSVNATH DEVELOPERS LTD. versus GAGANDEEP BRAR AND ANOTHER

The arbitration award dated 09.01.2015, having attained finality and affirmed by this Court's reasoning in Civil Appeal No. 10748/2016, requires that any amount payable on account of refund, interest or compensation under the Flat Buyer Agreement be borne by the developer and the Chandigarh Housing Board in the ratio of 70:30, and the impugned orders holding the developer solely liable must be modified accordingly.

Parties
Developer/appellant: Parsvnath Developers Limited; Respondent/allottee: Gagandeep Brar; Respondent/appellant (in Related Appeals): Chandigarh Housing Board
Jurisdiction
India
Judgment Date
13 April 2023
Procedural Posture
Civil Appeal / Appeal From National Consumer Disputes Redressal Commission (appeal Execution)
Outcome
Appeals preferred by the developer partly allowed; appeals by Chandigarh Housing Board disposed of as indicated
Legal Topics
Compensation, Flat Buyer Agreement, Apportionment of Liability, Execution Proceedings
Consumer Protection Arbitration Contract Law Real Estate Compensation Flat Buyer Agreement Apportionment of Liability Execution Proceedings

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Parties

Parsvnath Developers Limited

Developer/appellant

Gagandeep Brar

Respondent/allottee

Chandigarh Housing Board

Respondent/appellant (in Related Appeals)

Procedural Posture

Civil Appeal / Appeal From National Consumer Disputes Redressal Commission (appeal Execution)

Legal Issues

  1. 1 Whether compensation under clause 9(c) of the Flat Buyer/Tripartite Agreement is payable solely by the developer or is to be shared between the developer and Chandigarh Housing Board in the ratio 70:30 as per the arbitration award
  2. 2 Whether clause 9(c) applies where delay in construction is attributable to both the developer and the Housing Board
  3. 3 Whether a final arbitration award apportioning liability binds the executing forum and must be given effect

Ratio Decidendi

The arbitration award dated 09.01.2015, having attained finality and affirmed by this Court's reasoning in Civil Appeal No. 10748/2016, requires that any amount payable on account of refund, interest or compensation under the Flat Buyer Agreement be borne by the developer and the Chandigarh Housing Board in the ratio of 70:30, and the impugned orders holding the developer solely liable must be modified accordingly.

Court Disposition

Appeals preferred by the developer partly allowed; appeals by Chandigarh Housing Board disposed of as indicated

Orders

  • Impugned common judgment and order dated 05.02.2020 passed by the National Commission in Appeal Execution No. 4/2016 and connected matters is modified to hold the developer liable to pay 70% of the compensation in terms of clause 9(c) of the Flat Buyer Agreement and Chandigarh Housing Board liable for the remaining 30%
  • In view of the above modification, no further orders are required in the appeals preferred by the Chandigarh Housing Board except ordering disposal of those appeals