• Deficiency of service by land developers - previous judgements

 I approached a land developer firm (in 2013 april) and after having a look at various places where the land development is going by it, booked 2 sites of 30 x 40 feet in the name of my daughter. Per sq.ft rate agreed was Rs.650/-. Hence the total cost of the flats was Rs.15,60,000/-. I was told orally that after paying 30% of the total amount a written agreement will be executed and also the sites will be registered in the purchaser's name and the balance amount can be paid in monthly instalments ranging from 18 to 24 after the registration. I was also told with particular significance that in case the sale is cancelled because of the fault of either of the party, the token amount/initial payment will be given back within 40 days from the date of request for return of earnest/token money. I may add here that the sites I have chosen are from an undeveloped land for which the builder has to get approvals from various government departments which may take some time, may not be more than 9 to 12 months. 

Then I paid in 2 days a sum of Rs.2,34,000/- (Rs.two lakh thirtyfour thousand only). Duly signed Receipts are issued. After one month I called on them over phone and informed my inability to purchase both the sites due to financial problems. Then they said over phone that at the time of agreement, the money of Rs.2,34,000/- will be adjusted towards 30% of cost of one site only and other site will be cancelled and there is nothing to worry about.

After this I did not here from them for more than a year as to when to enter into agreement, whether the approvals received from the government, whether the land developed etc. No letter or any written communication received thereafter. Hence I started sending emails and letters asking them for return of token advance. I did not receive any reply for any of the correspondence. Nobody picks up the phone and reply. After a long persuation and many visits to their office and exchange of talks they sent a Banker's DD for Rs.50,000/- in my (December 2015) daughter's name which was encashed. Then they orally said that the remaining balance will be settled within 15 days. As usual there was no correspondence since then and my phones were not being answered. Hence I got suspicious and filed a case before consumer court on the ground of deficiency of service and asking for return of my money along with interest at 18% p.a and advocate fee. 

I am writing this with a request to suggest me some of the judgements in this regard which are in my favour so that they can be quoted in the arguments. 

I would be grateful for your help.


T Srinivasa Murthy
Asked 7 years ago in Property Law
Religion: Hindu

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3 Answers

1) you don't need judgments

2) it is clear cut case wherein developer has accepted Rs 2.35 lakhs against booking for 2 flats

3)builder has issued you receipt acknowledging receipt of Rs 2.35 lakhs

3) builder has failed to refund money inspite of repeated reminders after cancellation of booking

4) since only Rs 50000 has been refunded you are entitled to refund of balance amount with interest , litigation costs and compensation for mental torture undergone by you

Ajay Sethi
Advocate, Mumbai
95205 Answers
7607 Consultations

5.0 on 5.0

Yours is a case for deficiency in service, hence actionable before the consumer forum. If the builder has been served the summons from the consumer forum then the case will be decided on merits. Your advocate will find judgments, if at all any is required.

Ashish Davessar
Advocate, Jaipur
30763 Answers
972 Consultations

5.0 on 5.0

You have already filed a case in consumer court on the advise of an advocate and an advocate is already engaged for this purpose, you have not mentioned the status of the case and also what was the grounds or pleadings you have made seeking refund, etc.

Whether the opponent has filed his counter/written statement and what is his stand or whether he is defending his stand etc are not mentioned.

For judgments suiting to your situation can be found if you browse internet or your advocate may be able to find one based on the circumstances of the case.

RTevert with details so that you can get more proper opinion/judgment you may be looking for.

T Kalaiselvan
Advocate, Vellore
85404 Answers
2236 Consultations

5.0 on 5.0

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