M/s Suneja Towers Private Limited & Anr Vs Anita Merchant

Case snapshot

Sections / provisions: See packaged judgment

Questions before the Court / Tribunal

• Consumer/builder dispute: cancellation of long-standing flat booking and appropriate refund/compound interest.
• What factual, statutory and procedural conditions control the relief?
• How does the operative order apply to the parties and the challenged proceeding?

Material facts and procedural background

M/S SUNEJA TOWERS PRIVATE LIMITED & ANR. ….APPELLANT(S)

2. In these appeals by special leave, the appellants have essentially

present appellants for having failed to deliver the possession of three flats

Court, granted relief to the complainant in the manner that the appellants

Commission rejected all the contentions urged on behalf of the appellant

Appellant / assessee submissions

“Having heard learned senior counsel for the respective parties preliminarily and having examined the material placed on record, in our view, only the question of awarding compound interest at the rate of 14% on the refund of deposited amount is required to be considered in this matter. Issue notice to the limited extent as above. Ms. Supriya Juneja, learned counsel accepts notice on behalf of the respondent No. 1. Counter affidavit may be filed within three weeks. The petitioners shall have one week thereafter to file rejoinder affidavit, if so chosen.

involved, we have heard learned counsel for the parties finally at this

“29. The ld. Counsel for the appellant while arguing on the point of compensation has submitted that the case under consideration is on the facts of Manjit Kaur Monga versus K.L. Suneja and ors decided by the Hon’ble COMPAT and upheld by the Hon’ble Supreme Court of India in the matter of Manjit Kaur (Supra)-(2018) 14 SCC 679 holding as under:- “36…. It is clear that the respondents had made a false representation to the general public including Smt. Gursharan Kaur about the time within which the project was to be completed i.e. three years but did not complete the construction for more than one decade. Therefore, there is no escape from the conclusion that they are guilty of unfair trade practice as defined under Section 36-A(1)(i)(ii) and (ix) of the Act. 37. The cancellation of allotment made in favour of the complaint deserves to be declared as wholly arbitrary, illegal and capricious. It is not in dispute that Smt. Gursharan Kaur amount. The complainant, Dr. (Mrs.) Manjeet Kaur Monga deposited three other instalments. She did not despite further instalments because the respondents did not complete the construction within the stipulated time. For the first time a vague…

“32. From the bare reading of this provision, it is clear that the proceedings continuing under MRTP Act before its repeal had been saved under Section 66(1)(A). The argument of learned counsel for the Opposite Party that the order of Dr. Manjeet Kaur Monga’s case (supra) had been passed under a repealed Act and therefore is not applicable in this case, has no force and that the argument is totally misconceived and misdirected. Also, the order in Dr. Monga’s case (supra) was passed in the year 2015 after the repeal of MRTP Act which was challenged before the Hon’ble Supreme Court and the Hon’ble Supreme Court passed its order in 2018. Therefore, it is clear that the order of Dr. Manjeet Kaur Monga’s case (supra) was pronounced after the repeal of the MRTP Act and not during the existence of the MRTP Act. 33. There is no dispute that the facts of the Monga’s case (supra) and the present case are identical as the flats were booked in the same project of the Petitioner, although by different allottees and that in both the cases, despite payment of the money, the allotted flats were not given to its allottees within the stipulated period or even thereafter. In the present case, the…

Revenue / respondent submissions

treatment to the respondent. It has also been submitted that in fact the

Court / Tribunal analysis and reasoning

involved, we have heard learned counsel for the parties finally at this

16. Though the 1986 Act empowers the authorities to award compensation for any loss or injury including building damages but the order of NCDRC or that of SCDRC of awarding compensation is without any foundation being laid down by the complainant on judicially recognised principles and is by rule of thumb. Therefore, we find that grant of compensation under various heads granted by NCDRC cannot be sustained.”

In that context, this Court held that compensation in excess of stipulated

possession and therein, this Court held that compensation for such delay

Court held that such exit option would not disentitle the flat purchaser

National Commission, and then discontinued payment of further instalments. 49. The developer made an alternate offer of allotment of apartments in Phase 1 of the project. The allottees are however not bound to accept the same because of the inordinate delay in completing the construction of the Towers where units were allotted to them. The occupation certificate is not available even as on date, which clearly amounts to deficiency of service. The allottees cannot be made to wait indefinitely for possession of the apartments allotted to them, nor can they be bound to take the apartments in Phase 1 of the project. The allottees have submitted that they have taken loans, and are paying high rates of interest to the tune of 7.9%, etc. to the banks. Consequently, we hold that the allottees in Chart B are entitled to refund of the entire amount deposited by them. 50. Insofar as award of compensation by payment of interest is concerned, Clause 13.4 of the apartment buyer's Agreement provides that the developer shall be liable to pay the allottee compensation calculated @ Rs 7.5 per square foot of the super area for every month of delay, after the end of the grace period. The compensation…

Operative decision and relief

legal representatives have been compelled to pursue this litigation. It is an admitted position that between August 1989 and October 1993, Smt Gursharan Kaur and the complainant deposited a total sum of Rs 4,53,850 in the form of instalments. The respondents not only failed to complete the project within the stipulated time but also failed to return the instalments deposited by Smt Gursharan Kaur and the complainant. The amount was returned only along with the cancellation letter and, as mentioned above, the complainant had returned the pay order with the legal notice sent on 7-9-2005. 43. Though Section 12-B empowers the Tribunal to award compensation but no criteria has been laid down by the legislature for exercise of that power. However, keeping in view the fact that the construction of the flat was delayed by more than one decade and the amount of instalments deposited by Smt Gursharan Kaur and the complainant totalling Rs 4,53,850 was retained by the respondents for a period ranging from 15 years to more than 12 years, I feel that ends of justice would be served by directing the respondents to pay compound interest @ 15% per annum to the legal representatives of the…

appellant in Civil Appeals Nos. 5032-33 of 2016 for the period after the cancellation of the allotment. We may, of course, take note of the submission of the builder that in terms of the principles of restitution under Section 144 CPC and on the general principle of restitution, the builder cannot be put to unmerited injustice and the appellant should not take the undue advantage as held by this Court in Citibank N.A. v. Hiten P. Dalal [Citibank N.A. v. Hiten P. Dalal, (2016) 1 SCC 411 : (2016) 1 SCC (Civ) 342] , as canvassed by the learned counsel appearing for the builder. 7. The learned counsel appearing for Citibank, inviting our reference to the additional affidavit contended that it is a fact that the money from the current account of the builder has been deducted on 30-4-2005 and it has not been paid to the payee. But, at the same time, it cannot be said that the money was enjoyed by the Bank, since being a pay order, at any moment the instrument is presented, the Bank was bound to honour the same and, therefore, only for the lapse on the part of either the payee or the account-holder for encashing or cancelling the instrument, the Bank cannot be saddled with any interest.…

12. With the above observations and directions, the appeals are disposed of. 13. Pending applications, if any, shall stand disposed of. There shall be no orders as to costs.”

are required to be set aside. However, as indicated, the pertinent factors

Ratio and legal principle

• The packaged judgment addresses Consumer/builder dispute: cancellation of long-standing flat booking and appropriate refund/compound interest. The precise proposition must be read with the Court/Tribunal's reasoning and operative directions.
• Reliance depends on matching the statutory version, jurisdiction, procedural stage and material evidence recorded in the judgment.

Why this judgment matters

This decision is relevant to practitioners and affected parties dealing with consumer/builder dispute: cancellation of long-standing flat booking and appropriate refund/compound interest. Its value lies in showing how the adjudicating forum connected the applicable rule to the proved facts and procedural posture.

Practitioner action points

• Match the statutory version, jurisdiction, procedural stage and decisive evidence before relying on the result.
• Verify current appellate, review and SLP history and any later amendment or controlling authority.
• Attach the complete judgment to the working paper or filing and cite the paragraph/page supporting the proposition.

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Section / provision impact

• See the statutory provisions identified in the packaged judgment.

Case network

Similar issue / useful comparison

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• PCIT v. Indravadan Jain, HUF - Court / Tribunal to be verified

Different outcome / possible distinction

• ACIT v. Ashok W. Wesavkar - Operative order controls
• ACIT CIR 6(1) VS ASAHI INFRA & PROJECTS LIMITED - Remanded / restored

Full judgment and source control

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Source class: Official primary copy, digitally signed and authenticated · Repository status: Later-history status: verification on hold pending source confirmation