• Filing case in national consumer form

I purchased 2 flats from builder in Jan' 2020 & possession date was 30.04.2020, but the possession is not given by builder till date. The cost of one flat was approx. 27 lakh. I have 'Agreement of sale' registered with Sub-Registrar office and regularly paying Home Loan EMIs.

Builder has put one clause that I shall be Let/sublet my flats through one agency which functions as Homestay in that complex.

Pl clarify the following:

1. If any buyer buys flat from builder by taking Home loan & also mentions in 'Agreement of sale' that he will let/sublet his property to third agency after possession, than Is this buyer treated as 'Consumer' as per Consumer Act?
2. The cost of properties is Rs. 52 lakh and compensation to be claimed is Rs. 60 lakh in last 4 years. Can buyer file case in National Consumer forum?
3. If case is filed in National Consumer Forum through Offline method than would court summon builder for hearing at National Consumer Forum, New Delhi?
4. The place of buyer's residence is different from builder's office. Can Buyer case file in Consumer court at his residence district?
Asked 7 months ago in Property Law
Religion: Hindu

8 answers received in 1 day.

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10 Answers

he is a consumer as he has bought flat for residential purposes . he is always at liberty to give  flat on rent 

 

2) you have to file case before state commission

 

3) 

  • consumer court at the district level

Consumers can register complaints against builders at district-level commissions if the amount of the transaction is up to Rs 1 crore.

  • Consumer court at the state level

Consumers can register complaints at state-level commissions if the value of the transaction is between Rs 1 crore and Rs 10 crores.

  • Consumer court at the national level

A consumer can submit a complaint with a national consumer court if the value of the transaction exceeds Rs 10 crores.

Ajay Sethi
Advocate, Mumbai
95146 Answers
7597 Consultations

5.0 on 5.0

Yes

State commission.

State commission.

No , buyer office.

Yogendra Singh Rajawat
Advocate, Jaipur
22698 Answers
31 Consultations

4.4 on 5.0

  1. Yes, a buyer who buys a flat from a builder by taking a home loan and also mentions in the agreement of sale that he will let/sublet his property to a third agency after possession can be treated as a consumer as per the Consumer Protection Act, 2019. The definition of consumer under the Act includes any person who buys any goods or avails any services for a consideration, whether paid or promised or partly paid or partly promised, or under any system of deferred payment. The Act also covers the person who uses such goods or services with the approval of the buyer. Therefore, even if you have agreed to let/sublet your property to a third agency, you are still a consumer of the builder and you have the right to seek redressal for any deficiency in the goods or services provided by the builder.
  2. No, you cannot file a case in the National Consumer Disputes Redressal Commission (NCDRC) for your properties worth Rs. 52 lakh and compensation claim of Rs. 60 lakh. The pecuniary jurisdiction of the NCDRC is to entertain complaints where the value of the goods or services paid as consideration, along with the compensation claimed, exceeds Rs. 10 crore2. For complaints below this value, you have to approach the appropriate State Commission or District Forum, depending on their respective pecuniary jurisdiction.
  3. If you file a case in the NCDRC through offline method, then the court may summon the builder for hearing at the NCDRC in New Delhi, if it admits your complaint and issues notice to the opposite party. However, as mentioned above, you cannot file a case in the NCDRC for your properties and compensation claim, as they do not fall within its pecuniary jurisdiction. You have to file your case in the State Commission or District Forum where your properties are situated or where the builder’s office is located.
  4. No, you cannot file a case in the Consumer Court at your residence district, unless your properties or the builder’s office are also located in that district. The territorial jurisdiction of the Consumer Court is determined by the place where the cause of action arises or where the opposite party resides or carries on business or has a branch office or personally works for gain. Therefore, you have to file your case in the Consumer Court where your properties are situated or where the builder’s office is located.

Muraleedharan R
Advocate, Trivandrum
373 Answers
2 Consultations

5.0 on 5.0

Dear Client,

Section 2 (7) defines who is a consumer in your case the buyer is said to be the consumer because the buyer is still the purchaser of the property and has a right to enjoy the benefits of ownership. 

The National Commission shall have jurisdiction to entertain complaints where the value of the goods or services paid as consideration, exceeds two crore rupees.

Yes the buyer can file in consumer court at his residence district.

Thank you.

 

Anik Miu
Advocate, Bangalore
9153 Answers
111 Consultations

4.7 on 5.0

1. Yes, for the builder , the buyer is a consumer , and being the owner of flat the buyer has his right to let out the same to anyone , and builder having no right to dictate for the same. 

2. Complaints related to goods and services whose value exceeds Rs.2 crore, will be heard by the National Consumer Disputes Redressal Commission

3. Yes, 

4. Yes,

Mohammed Shahzad
Advocate, Delhi
13486 Answers
200 Consultations

5.0 on 5.0

1. This is a clause put by the builder which is against the interest of the buyer, you should not have agreed to this clause and in case the builder had forced you to accept this clause you should have cancelled the agreement, even now you can cancel the sale agreement by giving a notice for the reason that the builder has delayed possession inordinately.

2. You can file the case in the state commission if it exceeds Rs. 50 lakhs.

3.   The National commission will not entertain because it comes under the state commission.

The procedures would be followed for sending summons to opposite party.

4. The cause of action that arose would be the jurisdiction to file the case

T Kalaiselvan
Advocate, Vellore
85348 Answers
2227 Consultations

5.0 on 5.0

only the value of the consideration paid should be taken into consideration while determining the pecuniary jurisdiction and not value of the goods or services and compensation, and that is why a specific provision has been made in Sections 34 (1), 47 (1) (a) (i) and 58 (1) (a) (i) providing for the pecuniary jurisdiction of the District Consumer Disputes Redressal Commission, State Consumer Disputes Redressal Commission and the National Commission respectively”

 

2)The National Consumer Disputes Redressal Commission (NCDRC) has upheld the plea of home buyers or complainants that even if the home buyer cannot directly file a consumer complaint before NCDRC for want of pecuniary jurisdiction, the same can be done in a “Joint Complaint” wherein multiple home buyers will file one Joint Complaint against the builder and their aggregate sale consideration will be considered for determining pecuniary jurisdiction.

 

3) not necessary to appoint advocate one complainant can argue on behalf of all if duly authorised 

 

4) builder would be summoned before commission 

 

5) not necessary to send joint legal notice 

Ajay Sethi
Advocate, Mumbai
95146 Answers
7597 Consultations

5.0 on 5.0

1. Yes

2. It is based on the volume of claim amount.

3. Yes, but the cause of action should be same for joint complaint.

4. Yes

5. Yes

6. Yes

7. It's not necessary.

A complaint can be filed directly.

8. Compensation for deficiency in service, mental agony, physical damages, etc.

10. No.

T Kalaiselvan
Advocate, Vellore
85348 Answers
2227 Consultations

5.0 on 5.0

1. Yes

2. Yes

3. Yes

4. Yes

5. Yes, but better to engage a lawyer for producing the case efficiently

6. Yes

7. A joint legal notice should be sent 

8. For the mental agony and harassment 

9. No

Mohammed Shahzad
Advocate, Delhi
13486 Answers
200 Consultations

5.0 on 5.0

Yes us the answer for all the above questions.

Pecuniary jurisdiction will only have value of the goods and not compensation 

compensation can be litigation, for mental agony and torture and interest 

Prashant Nayak
Advocate, Mumbai
32146 Answers
183 Consultations

4.1 on 5.0

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