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M/S TREATY CONSTRUCTION & ANR. vs. M/S RUBY TOWER CO-OP. HSG. SOCIETY LTD.

SCR Citation: [2019] 9 S.C.R. 606
Year/Volume: 2019/ Volume 9
Date of Judgment: 19 July 2019
Petitioner: M/S TREATY CONSTRUCTION & ANR.
Disposal Nature: Appeal Partly Allowed
Neutral Citation: 2019 INSC 780
Judgment Delivered by: Hon'ble Mr. Justice Dinesh Maheshwari
Respondent: M/S RUBY TOWER CO-OP. HSG. SOCIETY LTD.
Case Type: CIVIL APPEAL /5699/2019
Order/Judgment: Judgment
1. Headnote

Consumer Protection – Deficiency of service – Appellants evolved a scheme of constructing a building consisting of flats and shops – Purchasers of those flats and shops formed a co-operative housing society – In relation to the project in question, dispute arose between the members of the respondent-society and appellantsbuilders – Respondent-society contended that appellants failed to complete the interior works and failed to obtain the completion certification as also the occupancy certificate – It was also alleged that appellants borrowed varied sums of money from the respondentsociety on pretext of completing the unfinished work – On the other hand, appellants contended that delay was due to the obstruction caused and created by the respondent, who had made illegal construction/alterations – State Commission, inter alia, directed appellants to execute Deed of conveyance of the property in question after obtaining the completion certificate and occupancy certificate and entitled the respondent for refund of amount of Rs.26,25,000/ -, which was given to obtain possession of the flat – Before, National Commission, appellants denied the receipt of the loan amount of Rs.26,25,000/- – The said submission was accepted by the National Commission, however, it held that appellants had agreed to pay a sum of Rs.25,00,000/- to the respondent-society in the meeting dated 17.12.2003, therefore, the appellants were bound by the admission so made by them and were liable to that extent – National Commission also directed appellants to pay compensation of Rs.3,00,000/- for not obtaining occupancy certificate and directed appellants to pay Rs.1000/- per day after 60 days of the order and until obtaining full occupancy certificate – On appeal, held: Direction by the National Commission as regards payment of sum of Rs.25,00,000/- by the appellants to the respondent requires no interference – Insofar other directions are concerned, there was no record to hold the appellants liable for compensation – In other words, there was no material on record to find if respondent-society or its members suffered any loss – Therefore, part of order directing appellants to pay compensation of Rs.3,00,000/- set aside – Also, Municipal Corporation had issued notices regarding alterations by the members of the respondent-society and dispute regarding the same has not settled as the High Court has directed for inspection of the building and necessary follow up steps – Thus, in the circumstances, part of the impugned order requiring the appellants to pay Rs.1000/ - per day after 60 days of the order, also set aside – Appellants and respondent directed to complete all requisites on their part – After completion of all the requisites by the parties, the appellants directed to execute the Deed of conveyance in favour of the respondentsociety after obtaining necessary occupancy certificate – Maharashtra Ownership Flats (Regulation of Promotion, Construction, Sale, Management and Transfer) Act, 1963 – ss.4 and 11.

2. Case referred
3. Act
  • Maharashtra Ownership Flat (Regulation of Promotion, Construction, Sale, Management and Transfer) Act, 1963 (45 of 1963)
4. Keyword
  • Consumer Protection
  • Deficiency of service
  • scheme of constructing a building
5. Equivalent citation
    Citation(s) 2019 AIR 3676 = 2019 (8) SCC 157 = 2019 (8) Suppl. SCC 157 = 2019 (9) SCALE 479