SUMAN JINDAL & ANR. versus M/S ADARSH DEVELOPERS

SUMAN JINDAL & ANR. versus M/S ADARSH DEVELOPERS

The booking amount was contractually reduced to 15% from 25% and the appellants paid in excess of this; termination of allotment for alleged failure to pay was misconceived; developer's obligation under Section 4 of Karnataka Ownership Flats Act was not fulfilled; appellants consistently sought execution of agreement for loan disbursal; SCDRC and NCDRC erred in denying primary relief.

Parties
Appellant: Suman Jindal & Anr.; Respondent: M/S Adarsh Developers
Jurisdiction
India
Judgment Date
25 April 2019
Procedural Posture
Civil Appeal / Supreme Court Appellate Decision
Outcome
Appeal allowed
Legal Topics
Consumer Disputes, Cancellation of Housing Allotment, Statutory Obligation to Execute Agreement, Deficiency of Service
Consumer Law Property Law Consumer Disputes Cancellation of Housing Allotment Statutory Obligation to Execute Agreement Deficiency of Service

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Parties

Suman Jindal & Anr.

Appellant

M/S Adarsh Developers

Respondent

Procedural Posture

Civil Appeal / Supreme Court Appellate Decision

Legal Issues

  1. 1 Whether the cancellation of allotment of the flat by the developer for failure to pay 25% booking amount was justified
  2. 2 Whether the developer was under a statutory obligation to execute an agreement to sell before accepting advance payment
  3. 3 Whether the actions of the developer constituted deficiency of service under the Consumer Protection Act

Ratio Decidendi

The booking amount was contractually reduced to 15% from 25% and the appellants paid in excess of this; termination of allotment for alleged failure to pay was misconceived; developer's obligation under Section 4 of Karnataka Ownership Flats Act was not fulfilled; appellants consistently sought execution of agreement for loan disbursal; SCDRC and NCDRC erred in denying primary relief.

Court Disposition

Appeal allowed

Orders

  • Appellants to pay developer balance sale consideration based on Rs 40,95,801 minus Rs 6,50,000 already paid, with 9% per annum interest from 20 April 2008 until payment
  • Appellants to pay BWSSB & BESCOM charges, Maintenance Deposit, Registration and Stamp Duty charges, and service tax as applicable