TaxTMI 
TaxTMI 
2020 (12) TMI 1400
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....ntial delay on the part of the developer in handing over possession of the apartments which were contracted to be sold. The complainants also specifically challenged the recovery of parking and club charges by the developer. A claim for compensation for delay in handing over possession of the flats was made. 2. The Appellants in their defence to the complaints inter alia contended that as a result of force majeure conditions, they were prevented from achieving timely completion of their contractual obligations. The circumstances which according to the Appellants triggered the force majeure clause of the agreements with flat buyers were: (i) delay in the approval of building plans; and (ii) issuance of stop work orders as a result of fatal ....
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....ssession till the date on which the consumer complaint by/on behalf of such an allottee was instituted. The compensation shall be paid within a period of three months from today. (vi) The car parking charges and club charges wherever already paid to the developer shall be refunded to the concerned allottee within three months from today, failing which the said charges shall carry interest @ 9% per annum from the date of this order, till the date of refund. (vii) The conveyance deed in favour of the allottees shall be executed within three months from today, subject to payment of outstanding dues, if any, payable by the allottees to the developer, in terms of this order and the requisite stamp duty and registration charges. (viii) In C....
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....partments purchased; and (iv) the developer has extended the benefit of other contractual terms, such as timely payment and goodwill rebates to the flat purchasers. Moreover, the flat buyer agreements provide compensation of Rs. 10 per square foot per month towards compensation. Hence, it was urged that apart from the force majeure defence, the award of compensation at the rate of 7% on account of the delay of the developer is erroneous. It has been submitted that the NCDRC has not distinguished between the facts of individual cases. 5. Responding to the above submissions, Mr. Shyam Divan, learned Senior Counsel appearing on behalf of the Respondent submitted that the NCDRC has carefully evaluated the grounds which were set up in support o....
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....the conclusion that there is no cogent evidence in regard to the nature of the delay and the reasons for the delay in the approval of the building plans. Quite apart from this finding of fact, it is evident that a delay in the approval of building plans is a normal incident of a construction project. A developer in the position of the Appellant would be conscious of these delays and cannot set this up as a defence to a claim for compensation where a delay has been occasioned beyond the contractually agreed period for handing over possession. As regards the stop work orders, there is a finding of fact that these were occasioned by a succession of fatal accidents which took place at the site and as a result of the failure of the Appellant to ....
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.... purchase of the flat. Similar is the position in regard to the submission on the appreciation of the value of the flats. Undoubtedly, this is one factor which has to be borne in mind in considering whether and, if so to what extent, compensation for delay should be awarded. Having regard to the principles which have been enunciated in the earlier two decisions which have been noted above, we are unable subscribe to the submission that the flat buyers are not entitled to any payment whatsoever on account of delayed compensation. 8. Mr. Misra submitted that in the present case, the agreement provided for compensation at the rate of Rs. 10 per sq. ft. as distinct from the agreement in the decision of this Court in Wing Commander Arifur Rahma....
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....eloper had not been set up). 10. Insofar as the parking and club charges are concerned, in view of the decision of the Court in Wing Commander Arifur Rahman Khan (supra), the direction of the NCDRC in that regard shall stand set aside. 11. Accordingly, we allow the appeals in part to the following extent: (i) The compensation on account of delay in handing over possession of the flats to the flat buyers is reduced from 7% to 6%; and (ii) The direction for the refund of parking charges and club charges and interest on these two components shall stand set aside. 12. We clarify that the directions of the NCDRC are upheld, save and except, for the above two modifications in terms of Clauses (i) and (ii) above. The payment at the rate of ....