The National Consumer Disputes Redressal Commission (NCDRC) in the case of Dharamvir Singh and Anr. vs Jai Prakash Associates Limited and Anr., New Delhi bench, comprising Mr. Ram Surat Ram Maurya and Bhartkumar Pandya, recently held Jai Prakash Associates Ltd. and its subsidiary,Jaypee Sports Int. Ltd., accountable for failing to deliver possession of a housing unit within the agreed timeframe.
The NCDRC rejected the builder’s defence,emphasizing that the remedies provided by Consumer Forums coexist with the Arbitration and Conciliation Act, 1996.
In this matter, Mr. Dharamvir Singh, who booked a unit in the “Kassia” housing project in 2011, the NCDRC found the builder’s delay in possession unacceptable.
Originally scheduled for June 2013, the possession was repeatedly postponed, leading the complainant to cancel the allotment in April 2015. Despite requests for a refund, the builder remained unresponsive.
The builder, in response, argued that the complainant was an investor, not a consumer, and pointed to an arbitration clause in the agreement.
However, the NCDRC rejected this argument,citing the Consumer Protection Act’s jurisdiction and the Supreme Court’s stance that consumer forums operate alongside the Arbitration and Conciliation Act.
The NCDRC scrutinized the builder’s justifications for project delays, including labor shortages and legal issues, finding them unsubstantiated. Notably, the Hon’ble Commission held that possession delays could not be justified by force majeure when payments and interest were collected without meeting obligations.
Consequently, the Hon’ble NCDRC directed Jai Prakash Associates Ltd. to refund the entire amount deposited by Mr.Dharamvir Singh, along with a 9% interest from the date of deposit, underlining the consumer’s right to timely possession and fair compensation.
