Monday, May 9, 2016

liability of allottee to pay maintenance charges, holding charges etc if he refused to take possession

      1. Judgment passed by the Hon’ble National Consumer Disputes Redressal in  Yash Bir Jaggi vs Unitech Ltd. on 3 February, 2006 reported as IV (2006) CPJ 123 NC can be relied upon for subjected purpose. Relevant part for the subjected issue is as follows :

“39. The aforesaid clause specifically provides that the allottee is liable to pay maintenance security 'as and when' and 'in the manner' demanded by the maintenance agency. In case where possession is offered the allottees are required to pay maintenance charges. Further, as these maintenance charges are taken for common facilities provided to all the allottees, any one allottee cannot take a stand that till he takes the possession of the property, he will not pay the maintenance charges. If that contention is accepted, it would be difficult to engage a maintenance agency for maintaining the apartments as a whole and provide common facilities.

40. Considering the above analysis, it is apparent that the stand taken by the complainant that he is not liable to pay the security deposit and maintenance charges as he has not taken possession of the flat is unjustified. We hold that the complainant is bound to pay the maintenance charges as demanded as well as the interest free security deposit amounting to Rs. 30,000. The above shall be paid with interest at the rate of 10% per annum from the date of demand till the date of payment.”
 2.   Whether the colonizers/owners are prohibited from recovering the amounts spent towards the maintenance charges from the plots/flats buyers was decided by the Hon’ble Supreme Court on 19 November, 2010 in a bunch of appeals against the orders of Punjab and Haryana High Court. Those appeals were filed by DLF UNIVERSAL LTD. & ANR., M/s. ANSAL PROPERTIES & Industries LTD., M/s. Ajay ENTERPRISES LTD. & ORS. agents DIRECTOR, T. &C. PLANNING HARYANA & ORS. AND STATE OF HARYANA & ORS.

The Hon’ble Apex Court framed below questions at Para 20 of the said judgment:

1.   Whether the Director of Country and Town Planning is empowered to issue any directions, directing the appellants to stop charging maintenance fee from the plot/flat holders and also “delete the relevant clauses from the agreement” and refund the amounts so far collected to the Government immediately?

2.   Whether the Act imposes any obligation upon the colonizers or owners to incur maintenance charges out of their own resources?

3.   Whether the colonizers/owners are prohibited from recovering the amounts spent towards the maintenance charges from the plots/flats buyers?

4.   Whether the clause incorporated in the sale agreement enabling the owners to collect the maintenance charges is void?

Section 3 (3) (a) (iii) of the Haryana Development and Regulation of Urban Areas Act, 1975  imposes responsibility for the maintenance and upkeep of all roads, open spaces, public parks and public health services for a period of five years from the date of issue of the completion certificate unless earlier relieved of this responsibility and thereupon to transfer all such roads, open spaces, public parks and public health services free of cost to the Government or the authority, as the case may be.

The Hon’ble Apex Court categorically said about aforesaid provision “That a bare reading of the provisions does not suggest that the owner is required to provide the said maintenance services free of cost.” At Para 22. The Hon’ble Apex Court further considered categorically “whether providing services of the kind by the owner/colonizer for which maintenance charges are imposed is a "work" of "internal development" which has to be carried out within the colony” at Para 23 and answering this question it categorically said “In our considered opinion the maintenance fee/charges levied and collected are clearly not in respect of any of the internal development works defined under clause (i) to (v) of Section 2 (i).” at Para 25.

The Hon’ble Court further considered “whether the amount of maintenance service charges was already included in the sale price of the plots/flats” at Para 28.

The Hon’ble Court said “There is no price fixation formula devised under the provisions of the Act, Rules and Regulations framed thereunder. The Statutory Authorities have no role to play in the fixation of price and costs of land and rate at which the plots/flats are to be sold. The price charged by the owner for the plot is fixed and covered by clauses (1) and (2) of plot sale agreement entered into by and between the parties. The agreed sale price of the plot includes external development charges. The payment of maintenance charges by the plot buyer is provided for in clause (14) of the said agreement. The sale price charged by the owner from the plot buyers includes maintenance of service charges at the most could be a bonafide contention between the owners/colonizers and the purchasers of plots/flats. The Act, Rules and the Regulations framed thereunder do not provide for any approval or ratification of the agreements so entered into by and between the owners/colonizers.” At Para 29 while at Para 30 it said “The sale price charged by the owner from the buyers for the sale of the plots/flats is a market driven sale price and is not based on any particular figure of cost. The provisions of the Act or the Rules in no manner impose any price control directly or indirectly in respect of plots/flats sold by the colonizer/owner. The sale and purchase of the plots/flats is between a willing vendor and a willing vendee.”

 3. National Commission on 29 Mar 2016 in PRAVEEN MEHTA v/s BENGAL UNITECH UNIVERSAL INFRASTRUCTURE PVT. LTD at Para 10

The complainant (Consumer)  is bound by the terms and conditions of the builder- buyer’s agreement(allotment letter).  As per this agreement, if the complainant does not take the possession in spite of offer of possession, he is bound to pay holding charges as per agreement to the opposite party (builder) and in case of delay in possession there are certain charges @5 /- per sq.ft. per month that will be payable by the builder to the allottee.”


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