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Buyer Cannot Be Required To Wait Indefinitely For Possession: Sc Asks Developer To Refund The Buyer:

Courtesy/By: Sakshi Shukla | 31 Mar 2019

A buyer cannot be required to wait indefinitely for possession, said the Supreme Court while affirming Consumer Commission order directing the developer to refund the amount to the buyer. In this case (Kolkata West International City Pvt. Ltd. vs. Devasis Rudra), the buyer paid an amount of Rs 39, 29,280 in 2006 to the builder and the agreement between them envisaged that possession of the Row House would be handed over to the buyer by 31 December 2008 with a grace period of a further six months.

In 2011, the buyer approached the consumer commission and prayed for possession of the Row House and in the alternative for the refund of the amount paid to the developer together with interest at 12% per annum. Compensation of Rs 20 lakhs was also claimed. The State Commission allowed the complaint by directing the developer to refund the moneys paid together with interest at 12% per annum and compensation of Rs 5 lakhs. The National Commission modified this order by reducing the compensation from Rs 5 lakhs to Rs 2 lakhs.

Courtesy/By: Sakshi Shukla | 31 Mar 2019