Failure To Hand Over Commercial Space To Purchasers Is 'Deficiency In Service': Delhi State Commission

The Delhi State Commission has held that default in delivering the commercial space by Parsvnath developers booked by the complainants is 'deficiency in service'. The bench presided by Member Bimla Kumari observed that purchasers cannot be made to wait for an indefinite period of time and thus granted adequate compensation. Brief background: Complainants applied for allotment of an office space in the construction project- Parsvnath City Center Bhiwadi of the developer company in Rajasthan. The said project was to be completed within 30 months from the date of agreement. The complainants paid a sum of Rs. 22,38,807/-. However, the opposite party abandoned the project. The complainants made several communications to the developer regarding the said issue. Since, there was already a delay of nine years, a legal notice was also sent by the complainants seeking refund of the entire amount paid. On not receiving any satisfactory response, the complainants approached the consumer forum by way of filing a complaint praying for appropriate compensation. The developer raised objections to the complaint on the grounds of maintainability, limitation,etc. It was argued that the stipulated time for handing over the possession was only tentative. The delay in possession was on account of global economic slowdown in the real estate sector. Observations: Issue 1: Whether purchase of commercial space, would make the complainant a 'consumer' under the Consumer Protection Act? The bench observed that the commercial space was booked by the complainants for the purpose of earning their livelihood. The developer company has failed to provide any document which would show that the complainants are engaged in the business of selling of properties. Hence, the complainant is a 'consumer' under the Consumer Protection Act, 1986. Issue 2: Whether there is 'deficiency in service' on the part of the developer company? The bench relied on the judgment in Arifur Rahman Khan & Ors. vs DLF Southern homes pvt. Ltd. & Ors. [Civil appeal 6239 of 2019] and observed that though the possession was required to be handed over within 30 months, the same is not done till today. It was further observed that the complainants cannot be made to wait for an indefinite period of time and hence, the developer company is liable for providing deficient services. Following reliefs were granted: Refund of entire amount of Rs. 22,38,807/- along with interest @ 6%. Rs. 1,00,000 as costs for mental agony and harassment Rs. 50,000 as litigation costs Case name: Jai Narayan vs Parsvnath developers pvt. Ltd Case number: Complaint Case No. 984/2019 Date of decision: 09.12.2024 Click Here To Read/Download The Order

Failure To Hand Over Commercial Space To Purchasers Is 'Deficiency In Service': Delhi State Commission

Aakanksha Bajoria

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