In a significant ruling by the Supreme Court of India, the decision of the National Consumer Disputes Redressal Commission (NCDRC) has been overturned in the Land Allotment Dispute case. The case involved a dispute between the appellant, a public authority, and the allottee, over the possession and pricing of a flat. Stay tuned to learn more about the details of this important legal battle.
Facts
- The appellant was directed to deliver possession in accordance with the letter of allotment.
- The appellant was ordered to pay costs of Rs 2,00,000 towards costs and Rs 2,000 towards causing mental agony.
- Non-compliance within three months would attract interest at 12% per annum.
- The escalated price demanded by the appellant was Rs 38,30,050, higher than the stipulated cost of Rs 30,40,000.
- The appellant faced a dispute with the contractor during construction which led to delays.
- The appellant later called for tenders to complete the project.
- The allotment order specified a payment schedule.
- Interest benefit of Rs 6,28,621 was granted to the appellant.
- Appellant directed to hand over possession of allotted flat as per letter of allotment
- Appellant liable to provide flat at stipulated price
- Order of compensation of Rs 2,00,000 set aside
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Analysis
- During the pendency of the appeal, the appellant filed a motion to hand over possession of the flat to the respondent.
- The appellant had the right to increase the price as per clause 7 of the letter of allotment.
- The appellant was granted a concession of around Rs 6,28,000 on the total cost of the flat.
- The sale deed under clause 9 required full payment of the flat’s cost before execution.
- The NCDRC was deemed unjustified in ruling that the appellant was entitled only to the original consideration without escalation.
- Possession of flat No 402 was handed over to the respondent’s spouse on 6 March 2019, as confirmed in court.
- The appellant, as a public authority, fairly provided interest to all allottees, including the appellant, on deposited amounts.
- The appellant, as a public authority, is accountable for the demands it raises and must act fairly and reasonably.
- In this case, the appellant acted fairly by providing all allottees with interest on the amounts retained by the Authority.
- The appeal is allowed, setting aside the NCDRC judgment and order. No costs are awarded.
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Case Title: VISAKHAPATNAM METROPOLITAN REGION DEVELOPMENT AUTHORITY Vs. CHAVVA SHEELA REDDY.
Case Number: C.A. No.-004493-004493 / 2019
