B.B. PATEL & ORS versus DLF UNIVERSAL LTD

B.B. PATEL & ORS versus DLF UNIVERSAL LTD

The Supreme Court upheld the MRTP Commission's finding that appellants failed to establish misrepresentation or other ingredients of unfair trade practice under the MRTP Act: the ABA permitted reasonable extension of time and contained mechanisms (clause 18) for termination which appellants did not invoke; extra charges were chargeable under express clauses of the ABA and were disclosed; consequently appellants were not entitled to compensation under s.12-B MRTP Act. Nevertheless, in the interest of justice the Court directed respondent to hand over possession of each flat on payment of Rs.25,00,000 per flat by the appellants.

Parties
Appellants: B.B. Patel & Ors.; Respondent: DLF Universal Ltd.
Jurisdiction
India
Judgment Date
25 January 2022
Procedural Posture
Civil Appeal / Appeal Against Judgment of Monopolies and Restrictive Trade Practices Commission Dated 19.01.2009; Disposed by Supreme Court
Outcome
Appeal disposed of; MRTP Commission judgment dismissing complaint upheld; Court directed respondent to hand over possession of flats on payment by appellants
Legal Topics
Unfair Trade Practice, Misrepresentation, Compensation, Time as Essence of Contract, Unconscionable Contract, Equitable Relief
Monopolies and Restrictive Trade Practices Act, 1969 Consumer Protection Act, 1986 Contract Law Real Estate/property Law Unfair Trade Practice Misrepresentation Compensation Time as Essence of Contract +2 more

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Parties

B.B. Patel & Ors.

Appellants

DLF Universal Ltd.

Respondent

Procedural Posture

Civil Appeal / Appeal Against Judgment of Monopolies and Restrictive Trade Practices Commission Dated 19.01.2009; Disposed by Supreme Court

Legal Issues

  1. 1 Whether delay in handing over possession and demand for extra charges constituted an unfair trade practice under MRTP Act
  2. 2 Whether the Apartment Buyer Agreement was unconscionable and/or time was made the essence of the contract
  3. 3 Whether appellants were entitled to compensation under Section 12-B MRTP Act

Ratio Decidendi

The Supreme Court upheld the MRTP Commission's finding that appellants failed to establish misrepresentation or other ingredients of unfair trade practice under the MRTP Act: the ABA permitted reasonable extension of time and contained mechanisms (clause 18) for termination which appellants did not invoke; extra charges were chargeable under express clauses of the ABA and were disclosed; consequently appellants were not entitled to compensation under s.12-B MRTP Act. Nevertheless, in the interest of justice the Court directed respondent to hand over possession of each flat on payment of Rs.25,00,000 per flat by the appellants.

Court Disposition

Appeal disposed of; MRTP Commission judgment dismissing complaint upheld; Court directed respondent to hand over possession of flats on payment by appellants

Orders

  • Appeal disposed of
  • Order of Monopolies and Restrictive Trade Practices Commission dated 19.01.2009 dismissing complaint upheld