• Consumer complaint by landowner

Registered Agreement of Development of 2019 with 35% to landowner. Builder paid advance amount of Rs.50 lacs at the time of agreement as advance/consideration amount to landowners. (as per IGR valuation of registered agreement is (50 lacs + 200 lacs value of 10 flats) Landowners executed power of attorney to builder for construction and sale of building. Landowners does not have any control in construction or sale of builders flat. The builder promised to deliver 10 flats to landowners in 3 years. Builder undertook that he will not execute any sale deed before delivery of flats to landowners. Builder executed sale deed of all 65% flats to his customers with delivery of flats. But intentionally delivered only 2 flats and balance 8 flats are withhold since 2 years. Damages of Rs.1 lacs per month since 2 years.
My question:
1.Can we file consumer complaint in district forum as amount paid by builder is 50 lacs. or we have to file to national commission directly as (50 lacs + 200 lacs value of 10 flats) 250 lacs more than 2cr. 
As per new amendment value of consideration at the time of agreement prevels and flats will be ready in 3 years. But hear value of consideration cannot be considered as 50 lacs as the said payment is made by builder. if we file valution report of IGR the valuation of landowners is 250 lacs. Please let us know in which court we can file case to get speedy relief. 
2.Can we file injunction to deliver flats and damages for delayed flats of (1lacs X 24 months) 24 lacs.
3.I feel to file National forum considering valuation report can be the fastest relief.
4.We came across 3 judgements wereby landowners can file case in consumer forum and is not a commercial transaction.
let me advice.
Asked 2 years ago in Property Law
Religion: Hindu

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6 Answers

File civil suit against builder and seek orders to direct builder to deliver flats within stipulated period 

 

2) also seek damages for loss suffered by you 

 

3) you can approach consumer forum if you have judgments that landowners can file case in consumer forum and it is not a commercial transaction 

 

4) file case in national commission as 10 flats were supposed to be delivered to you 

Ajay Sethi
Advocate, Mumbai
99784 Answers
8145 Consultations

1. This is a breach of contract conditions hence you may file a suit for specific relief in a suit for specific performance of contract.

2. You can ask for injunction also in the same suit.

3. This may not fall in the ambit of consumer protection act 

4. You may discuss with your advocate on all such further queries.

T Kalaiselvan
Advocate, Vellore
89985 Answers
2492 Consultations

1. Yes, you can file consumer complaint in given circumstances but if agreement provides arbitration clause then such complaint shall not be maintainable.  

2. Yes for recovery and injunction. But is better to file arbitration case, if agreement provides for arbitration. If there is arbitration agreement then no other suit can be filed in any court of law. 

3. No. It is general misconception. It too time consuming. 

4. Correct but it must examined in the light of agreement. 

Siddharth Srivastava
Advocate, Delhi
1551 Answers

  1. It is the amount of relief claimed that decides the   As your claim will be more than 1Cr. You need to file complaint before State  Commission which  has pecuniary jurisdiction up to 10cr.
  2. You can certainly seek interim direction against builder not to proceed to sale of constructed flats under Section 30 (8).
  3. You are consumer of service provided by builder. You can file consumer complaint before appropriate forum.

Ravi Shinde
Advocate, Hyderabad
5132 Answers
42 Consultations

1. You can file complaint before the State Consumer Forum against the builder 

2. Yes, you can also claim compensation for delaying the possession and for non-compliance of the agreement. 

3. It is not a commercial matter , as there is agreement for development with the builder 

Mohammed Shahzad
Advocate, Delhi
15814 Answers
242 Consultations

Dear client,

1. Jurisdiction for Filing Complaint: The jurisdiction for filing a complaint depends on the value of consideration at the time of the agreement. Since the consideration mentioned in the registered agreement was Rs.50 lacs, you may initially file a complaint in the district consumer forum. However, considering the value of the property and the discrepancies in the agreement value versus the valuation report from IGR (Registrar's office), there might be a discrepancy in deciding the jurisdiction. 

2. Filing for Injunction and Claiming Damages: Yes, you can file for an injunction to compel the builder to deliver the flats as promised and claim damages for the delay. The delay in delivering the flats constitutes a breach of the agreement, allowing you to claim damages based on the terms mentioned in the agreement or under consumer protection laws.

3. National Forum Consideration: The National Consumer Disputes Redressal Commission (NCDRC) deals with cases involving a higher value of consideration. Considering the discrepancies in the valuation, you may consider filing directly in the NCDRC if the jurisdictional value exceeds the threshold for the district forum.

4. Consumer Forum Jurisdiction: There have been cases where landowners have filed complaints in consumer forums, especially when the agreement involves services or a deficiency in services promised. Consumer forums have entertained cases involving landowners if the dispute pertains to services promised by a builder/developer.

You can reach out to us for further assistance

Anik Miu
Advocate, Bangalore
11014 Answers
125 Consultations

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