Price of flat not relevant in case of claim for refund: Delhi State Commission

Ruhi Seth had booked an apartment in a housing project to be constructed by Ireo Grace Realtech, a private construction company. Out of the total agreed consideration of Rs 1,84,44,568, Seth had paid Rs 33,56,942.

When the builder sent the draft of the agreement, Seth objected to certain clauses, refused to sign the agreement and sent it back to the builder, who revised the agreement, which too was not accepted. So Seth refused to pay further instalments till the dispute about the agreement clauses was resolved. Taking umbrage, the builder cancelled the flat allotted to her, and forfeited the entire amount paid by Seth.

Seth filed a complaint before the Delhi State Commission seeking a refund of the amount of Rs 33,56,942 paid by her together with interest amounting to Rs 34,24,081 computed at 24% per annum from March 20, 2013 till May 20, 2017. She also claimed compensation and costs.

The sum total of all the relieves claimed under various heads came to Rs 73,81,023. The state commission referred to the National Commission's judgement in Ambrish Kumar Shukla & Ors versus Ferrous Infrastructure Pvt Ltd case and observed that the aggregate value of refund claimed and the value of the flat would exceed state commission's pecuniary limit of Rs 1 crore. So it asked for filing of case before the appropriate forum having jurisdiction.

Seth then filed the same complaint before the National Commission. The National Commission stated that the value of the flat would have to be added only when the complaint is in respect of possession, construction, or defects in a flat. Since Seth's dispute was restricted to the claim for refund of the amount along with interest, compensation, and costs.

Accordingly, by its judgement on November 13 delivered by Prem Narain, the Commission concluded that the claim for refund of the deposit along with interest, compensation and costs aggregating to Rs 73,81,023 was below its pecuniary jurisdiction and would have to be adjudicated by the state commission. The National Commission asked Seth to a fresh complaint or revive her earlier complaint before the Delhi State Commission.

(The author is a consumer activist and has won the Govt. of India's National Youth Award for Consumer Protection. His email is jehangir.gai.columnist@outlook.in)