In a recent legal case, a construction company was held accountable for not completing a flat construction within the agreed time period. The court’s ruling focused on consumer rights and mandated a refund of the deposited amount with interest. This decision sheds light on the importance of upholding quality standards and contractual obligations in the realm of construction. Let’s delve into the legal analysis of the court’s decision and its implications for consumer protection and service accountability.
Analysis
- The construction of the flat was not completed even after receiving Rs.21.18 Lakhs within a presumed period of two years.
- Complainant is entitled to receive the deposit amount back along with interest.
- The National Commission directed a refund of Rs.16,18,000/- with interest @ 9% per annum within two months.
- The National Commission erred in partially reversing the State Commission’s order.
Also Read: Court’s Jurisdiction in Re-appraising Arbitrator’s Findings
Decision
- The State Consumer Dispute Redressal Commission directed the respondent to refund Rs. 21,18,000 to the appellant within two months.
- The State Commission also ordered the respondent to pay Rs. 5,000 as litigation expenses to the complainant.
- The National Commission’s order was set aside, and the State Commission’s order was restored.
- The respondent is required to pay the specified amount within two months or pay simple interest of 9% per annum.
Also Read: Contrary Directions in Issuance of Letter of Intent
Case Title: RAVINDER SINGH CHANA Vs. KHANNA PROPERTIES AND INFRASTRUCTURES PVT. LTD. (2022 INSC 1319)
Case Number: C.A. No.-005793-005793 / 2022
