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Held: The Commission held that the Builder has clearly committed a
default. It had been more than 7 years since Flat Buyer Agreement
was executed and possession of the Flats had still not been handed
over to the Complainants. The Commission held that the Builder’s
actions amounted to “unfair trade practices”.
However, in the second half of the year 2008, the Complainants were
informed that the date of delivery of the flat was extended to March
31, 2010 and they were only entitled to compensation @ Rs.5/- per
sq. ft. per month for the period of delay in delivery of possession.
Aggrieved by the activities of the Builder, the Complainants filed a
complaint with the Commission
Held: The Commission held that the Builder had admitted that the
possession of the flat was to be delivered before March 2009.
However, construction of the project stood left mid-way when the
Complaint was filed and even during course of trial the Builder
had not offered to deliver possession. The failure of the Builder to
hand over possession amounted to an ‘unfair trade practice’.
The Complainant alleged that although the Builder slowed down the
construction, he continued to demand payments as per the payment
schedule agreed under the Buyer’s Agreement. The project was to be
completed within 3 years, but the Builder failed to complete the
project even after the expiry of 4 years and flats had not been
handed over to the owners till date of the Order.
Held: The Punjab and Haryana High Court held that the order of the
Permanent Lok Adalat was valid and within the confines of the
Legal Services Authority Act, 1987 and therefore the award in favour
of the Allottees was therefore, upheld.