RAVINDER SINGH CHANAversusKHANNA PROPERTIES AND INFRASTRUCTURES PVT. LTD.
- Citation
- 2022 INSC 1319
- Decided
- 24 August 2022
- Disposal
- Disposed off
Holding
The National Consumer Disputes Redressal Commission erred in partially reversing the State Commission’s order; the State Commission’s order directing a full refund of Rs.21.18 lakh with interest is restored.
Summary
The appellant, a homebuyer, paid Rs.21.18 lakh to the respondent for the construction of a flat, which remained incomplete beyond the presumed two‑year period. The Madhya Pradesh State Consumer Dispute Redressal Commission ordered the respondent to refund the entire amount with 9% simple interest and a modest litigation cost. On appeal, the National Consumer Disputes Redressal Commission reduced the refund to Rs.16.18 lakh, partially reversing the State Commission’s order. The appellant challenged this modification before the Supreme Court, arguing that the National Commission erred in altering the earlier decree. The Court held that the National Commission was in error and set aside its order, restoring the State Commission’s directive for full repayment. Consequently, the respondent was directed to refund Rs.21.18 lakh with interest within two months, and the appeal was disposed of.
Issues considered
- Whether the National Consumer Disputes Redressal Commission had the authority to partially reverse the order of the State Consumer Dispute Redressal Commission in a consumer complaint concerning non‑completion of construction.
- Whether a partial refund is permissible under the Consumer Protection framework when the developer fails to complete the promised flat within the stipulated time.
Subjects
Judgment
136 [2022]REPORTS
SUPREME COURT 7 S.C.R. 136 [2022] 7 S.C.R.
A RAVINDER SINGH CHANA
v.
KHANNA PROPERTIES AND INFRASTRUCTURES PVT. LTD.
(Civil Appeal No(C). 5793 of 2022)
B AUGUST 24, 2022
[S. ABDUL NAZEER AND J.K. MAHESHWARI, JJ.]
Consumer Protection – Construction of flat not completed
even after receipt of amount within the fixed time period – State
Commission directed the respondent to refund the total amount of
C
Rs.21.18 Lakhs to the appellant with interest – However, National
Commission directed the refund of Rs.16,18,000/- with interest –
On appeal, held: National Commission erred in partially reversing
the order of State Commission – Order of National Commission set
aside – Respondent to pay/refund the amount in terms of the order
D of the State Commission within two months, if already not paid/
refunded.
CIVIL APPELLATE JURISDICTION: Civil Appeal No. 5793
of 2022.
From the Judgment and Order dated 17.02.2022 of the National
E Consumer Disputes Redressal Commission, New Delhi in First Appeal
No.387 of 2021.
Akshat Shrivastava, Satvic Mathur, Advs. for the Appellant.
Yashish Chandra, Yash Agrawal, Devesh Pratap Singh, Advs. for
F the Respondent.
The following Order of the Court was passed:
ORDER
1. Leave granted.
G 2. By an order dated 15.10.2020, M.P. State Consumer Dispute
Redressal Commission, Bhopal, (M.P.) (for short ’the State Commission’)
directed the respondent herein to refund a total sum of Rs.21,18,000/-
(Rupees twenty-one lakhs eighteen thousand only) to the appellant with
interest thereon within a period of two months. The operative portion of
the order of the State Commission is as under:
H
136
RAVINDER SINGH CHANA v. KHANNA PROPERTIES AND 137
INFRASTRUCTURES PVT. LTD.
“It is proved in the light of above investigation/observation and A
justice citations that even after receipt of an amount of Rs.21.18
Lakhs, within a fixed time period, which is generally presumed
approximately two years, the construction of the flat has not been
completed. Hence the complainant is entitled to receive the deposit
amount back along with interest. Therefore this complaint case is
B
allowed/accepted and respondent is directed to pay an amount of
Rs.21.18 Lakh (Rs. Twenty One Lakh Eighteen Thousand only)
within a period of two months and also to pay simple interest of
9% per annum upon the above said amount from the dated
19.01.2015 the last depositing installment till realization date. The
respondent also to pay an amount of Rs.5,000/- (Rs. Five Thousand C
only) as litigation expenses to the complainant.”
3. However, the National Consumer Disputes Redressal
Commission, New Delhi (for short ‘the National Commission’) has passed
the impugned order dated 15.10.2020 directing the refund of
Rs.16,18,000/- (Rupees sixteen lakhs eighteen thousand only) with interest D
@ 9% per annum within a period of two months from the date of the
said order.
4. Having heard learned counsel for the parties and on perusal of
the materials placed on record, we are of the view that the National
Commission was in error in partially reversing the order of the State E
Commission. Therefore, the order of the National Commission impugned
herein is hereby set aside and the order of the State Commission dated
15.10.2020 is hereby restored.
5. The respondent is directed to pay/refund the amount in terms
of the order of the State Commission dated 15.10.2020 within a period F
of two months from today, if already not paid/refunded.
6. The civil appeal is disposed of accordingly.
Divya Pandey Appeal disposed of.
(Assisted by : Roopanshi Virang, LCRA) G
H
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