HREAT Issue of maintainability goes to the root of the jurisdiction

10. Even with regard to the claim of compensation on account of alleged structural defects, the law requires that the complaint must be filed and processed in accordance with the procedure prescribed under Rules 28 and 29 of the Haryana RERA Rules, 2017. In the present case, the complaint combines multiple reliefs relating both to development works and compensation without following the prescribed procedure. Therefore, the complaints could not have been considered by the Adjudicating Officer.

11. *The objection raised by the appellant-promoter regarding maintainability goes to the root of the jurisdiction of the Adjudicating Officer. Such an issue ought to be decided at the threshold before proceeding further in the matter. However, the Adjudicating Officer proceeded without deciding this issue, which is not in consonance with the settled legal principles.*

12. In view of the foregoing discussion, we are of the considered opinion that the Adjudicating Officer has exercised jurisdiction not vested in him by law and has failed to exercise jurisdiction so vested in deciding the issue of maintainability at the appropriate stage.

13. *Consequently, the appeals are allowed. The impugned order in all the above-mentioned appeals is hereby set aside and the complaints filed before the Adjudicating Officer are held to be non-maintainable.*

HREAT in Appeal No. 08 of 2026 & connected appeals

H-REAT-8-2026 titled as St. Patricks Realty Pvt. Ltd. V/s NEHA PRASAD dated 01-Jul-2026

 

Entitlement of Delay Possession Charge, Limitation Period

 

10. The contention that execution of conveyance deed or delivery of possession extinguishes the rights of the allottees under the Act cannot be accepted. The Scheme of the Act makes it abundantly clear that the status of allottee does not stand obliterated merely because title has been conveyed. Any other interpretation would defeat the beneficial object of the legislation and permit promoter to evade liability despite admitted deficiencies or delays.

16. The preliminary objection regarding limitation raised by the promoter deserves to be rejected. The proceedings in the present matter have been instituted under the Act. A perusal of the scheme of the Act reveals that while the legislature has specifically prescribed period of limitation for filing appeals under Section 44 and for other specified proceedings, no period of limitation has been prescribed for filing a complaint before the Authority under Section 31 of the Act. It is settled principle of statutory interpretation that where the legislature has consciously provided limitation in certain provisions and omitted the same in others, such omission cannot be supplied by judicial interpretation. Consequently, no limitation period can be imported into Section 31 of the Act by implication.

18. It is also well-settled that the provisions of the Limitation Act, 1963 are not applicable to proceedings before special Tribunals or authorities unless such applicability is expressly provided by the statute creating the forum. The Act neither incorporates nor makes applicable the provisions of the Limitation Act to complaints instituted before the Authority. In the absence of any express legislative mandate, the provisions of the Limitation Act cannot be invoked to defeat a remedy created under a legislation enacted for protection of allottees and regulation of the real estate sector.

HREAT in Appeal No. 946 of 2024 and connected appeals  

H-REAT-946-2024 tiled as EMAAR INDIA LIMITED v/s POONAM GOEL dated 02-Jul-2026

Supreme Court _Condonation of delay approach

The Honb'le Supreme Court in case titled as “Collector, Land Acquisition, Anantnag and another Vs. Mst. Katiji and others reported as (1987) 2 Supreme Court Cases 107, said as under about approach for condonation of delay: -

 “xxx xxx xxx And such a liberal approach is adopted on principle as it is realized that: 

1. Ordinarily a litigant does not stand to benefit by lodging an appeal late. 
2. Refusing to condone delay can result in a meritorious matter being thrown out at the very threshold and cause of justice being defeated. As against this when delay is condoned the highest that can happen is that a cause would be decided on merits after hearing the parties. 
3. "Every day's delay must be explained" does not mean that a pedantic approach should be made. Why not every hour's delay, every second's delay? The doctrine must be applied in a rational common sense pragmatic manner. 
4. When substantial justice and technical considerations are pitted against each other, cause of substantial justice deserves to be preferred for the other side cannot claim to have vested right in injustice being done because of a non-deliberate delay. 
5. There is no presumption that delay is occasioned deliberately, or on account of culpable negligence, or on account of mala fides. A litigant does not stand to benefit by resorting to delay. In fact he runs a serious risk. 
6. It must be grasped that judiciary is respected not on account of its power to legalize injustice on technical grounds but because it is capable of removing injustice and is expected to do so. 

Making a justice-oriented approach from this perspective, there was sufficient cause for condoning the delay in the institution of the appeal.”

The principles stated in the above-said judgment were reiterated and reaffirmed in the judgment of the Hon'ble Supreme Court in case titled as “Dhiraj Singh (D) through legal representatives & others Vs. State of Haryana”, (2014) 14 SCC 127.

More than one Units/Flats/Apartments_Consumer_NCDRC

Case No. Complainant Respondent CC/975/2017 RAJEEV KUMAR SINGH JAI PRAKASH ASSOCIATES LTD. & ANR.   NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION

NEW DELHI

 

CONSUMER CASE NO. 976 OF 2017

 

1. RAJEEV KUMAR SINGH S/o. Shri. K.P. Singh, R/o. D-63, Sector -40, Noida- 201301 U.P.	...........Complainant(s)
Versus
1. JAI PRAKASH ASSOCIATES LTD. & ANR. Sector - 128, Noida Uttar Pradesh - 201 304 2. Jaypee Infratech Limited., Sector - 128, Noida - 201 304 U.P.	...........Opp.Party(s)

 

15. So far as the question of Complainant being or not being a consumer is concerned, this Commission has already taken a view in a number of cases that if the complainant is not in the business of purchase/sale of the plots/flats, he will be treated as a consumer.  This Commission in Aashish Oberai  Vs. Emaar MGF Land Limited, Consumer Case No. 70 of 2015, decided on 14.09.2016, has held as follows:-

“In the case of the purchase of the houses which a builder undertakes to construct for the buyer, the purchase can be said to be for a commercial purpose where it is shown, by producing evidence, that the buyer is engaged in the business of a buying and selling of houses and or plots as a trading activity, with a view to make profits by sale of such houses or plots.  A person cannot be said to have purchased a house for a commercial purpose only by proving that he owns or had purchased more than one houses or plots.  In a given case, separate houses may be purchased by a person for the individual use of his family members.  A person owning a house in a city A may also purchase a house in city B for the purpose of staying in that house during short visits to that city.  A person may buy two or three houses if the requirement of his family cannot be met in one house.  Therefore, it would not be correct to say that in every case where a person owns more than one house, the acquisition of the house is for a commercial purpose”.

It was also observed that:-

“It would be pertinent to note that there is no evidence of the complainant having purchased and then sold any residential property.  Therefore, it would be difficult to say that he was engaged in the business of the buying and selling of the property or that villa in question was booked by him for speculative purposes”.

16. In another case, Kavit Ahuja Vs. Shipra Estate Ltd. & Jai Krishna Estate Developers Pvt. Ltd.,  I(2016) CPJ31(NC), wherein three flats were booked by the complainant, this Commission held the complainant to be a consumer within the meaning of Section 2(1)(d) of the Consumer Protection Act, 1986 and held as follows:-

“In the case of the purchase of houses which the service provider undertakes to construct for the purchaser, the purchase can be said to be for a commercial purpose only where it is shown that the purchaser is engaged in the business of purchasing and selling houses and / or plots on a regular basis, solely with a view to make profit by sale of such houses.  If however, a house to be constructed by the service provider is purchased by him purely as an investment and he is not undertaking the trading of houses on a regular basis and in the normal course of the business profession or services in which he is engaged, it would be difficult to say that he had purchased houses for a commercial purpose.  A person having surplus funds available with him would not like to keep such funds idle and would seek to invest them in such a manner that he gets maximum returns on his investment.  He may invest such funds in a Bank Deposits, Shares, Mutual Funds and Bonds or Debentures etc.  Likewise, he may also invest his surplus funds in purchase of one or more houses, which is/are proposed to be constructed by the service provider, in the hope that he would get better return on his investment by selling the said house(s) on a future date when the market value of such house (s) is higher than the price paid or agreed to be paid by him.  That by itself would not mean that he was engaged in the commerce or business of purchasing and selling the house (s).

7.      Generating profit by way of trading, in my view is altogether different from earning capital gains on account of appreciation in the market value of the property unless it is shown that the person acquiring the property was engaged in such acquisition on a regular basis and it was by way of a business activity.

8.  As observed by the Hon’ble Supreme Court in Laxmi Engineering Works (supra) what is a ‘commercial purpose’ is a question of fact to be decided in the facts of each case and it is not the value of the goods that matters but the purpose for which the goods brought are put to. The same would be equally applicable to for hiring or availing services.

9.  In any case, it is not appropriate to classify such acquisition as a commercial activity merely on the basis of the number of houses purchased by a person, unless it is shown that he was engaged in the business of selling and purchasing of houses on a regular basis. If, for instance, a person has two-three children in his family and he purchased three houses one for each of them, it would be difficult to say that the said houses were purchased by him for a commercial purpose. His intention in such a case is not to make profit at a future date but is to provide residential accommodation to his children on account of the love and affection he has for his children. To take another example, if a person has a house say in Delhi but he has business in other places as well and therefore, purchases one or more houses at other places where he has to live presently in connection with the business carried by him, it would be difficult to say that such acquisition is for commercial purpose.  To give one more example, a person owning a house in a Metropolitan city such as Delhi, or Mumbai, may acquire a house at a hill station or a place, which is less crowded and more peaceful than a Metropolitan city, in my view, it cannot be said that such acquisition would be for commercial purpose.  In yet another case, a person may be owning a house but the accommodation may not be sufficient for him and his family, if he acquires one or more additional houses, it cannot be said that he has acquired them for commercial purpose.  Many more such examples can be given.  Therefore, it cannot be said that merely because of the complainant had agreed to purchase three flats in the same complex the said acquisition was for a commercial purpose”.

17. This Commission, in Rajesh Malhotra & Ors. Vs. Acron Developers & 2 Ors., First Appeal No. 1287 of 2014, decided on 05.11.2015 has held as follows:-

“12.     Therefore, in order to determine whether the goods are purchased for commercial purpose, the basic pre-requisite would be whether the subject goods have been purchased or the services availed of with the prime motive of trading or business activity in them, for the purpose of making profit, which, as held in Laxmi Engineering (supra) is always a question of fact to be decided in the facts and circumstances of each case”.

 

18. On the basis of the above authoritative judgements of this commission, there seems to be no iota of doubt that the Complainant in the present complaint is a consumer.  The judgment relied upon by the Opposite Party in Consumer Complaint No.159/2012 Anil Dutt vs. M/s Business Park Town Planners Ltd. (BPTP) (Supra) relates to a case where 10 units were booked by one consumer and clearly this Commission has observed that a person booking 10 plots cannot be treated as consumer as the plots were booked for commercial purpose.  In Laxmi Engineering Works Vs. P.S.G Industrial Institute (1995) 3 SCC583, Hon’ble Supreme Court has observed that the finding on issue of commercial purpose will depend on facts and circumstances in each case.  In the present case, only two flats were booked by the Complainant and therefore, facts of the two cases are different.  Thus, the judgment of this Commission in Consumer Complaint No.159/2012 Anil Dutt vs. M/s Business Park Town Planners Ltd. (BPTP) (Supra) cannot be applied in the present case.  

Home Loan Against The Security Of The Allotment Latters

City and Industrial Development Corporation of Maharashtra State Ltd., (For short: CIODCO), besides being the Development Authority, has been constructing the apartments and allotting the same to the intending purchasers and, similarly, Maharashtra Housing And Development Authority, (For short: MHADA) with the main objective of providing affordable housing to the public. CIDCO initially issues an allotment letter on payment of EMD and the Agreement for Sale is executed after the payment of the full and final sale consideration with the miscellaneous charges and it grants permission to the allottee to mortgage the apartment to any of the 44 financial institutions, as per the names mentioned therein. Though MHADA is also a wholly owned company of the State Government, it, initially, issues only provisional Offer letter and on the payment of the balance sale consideration and other requirements, it issues the final allotment letter. The Banks, both in public sector and private sector, and the housing finance companies (For short Financial Institutions) have been advancing loans to such allottees for making the payment of the sale consideration etc. to CIDCO or MHADA, as the case may be, to acquire such apartments against the deposit of the allotment letters and the permission to mortgage issued by such bodies. The question arises whether legally enforceable equitable mortgage is created by simply depositing the allotment letter and letter permitting mortgage.

This issue arose in the case of an industrial plot allotted by the Government of Andhra Pradesh with the Industrial Development Area, at NACHARAM (A.P), subsequently, vest with Andhra Pradesh Industrial Infrastructure Corporation ( For short: APIIC), to a Company named United Auto Tractor Ltd., to set up an industrial unit by way of an Order dated 18.7.1972, followed by an unregistered agreement dated 3.8.1972 entered into between the State Government and the said Company, inter-alia, providing that only on the completion and full payment of the entire consideration amount, sale deed shall be executed and registered in the name of the company and till such time, the ownership of the property shall continue to remain with the Government. On the said day, the said Government, through the Director of the Industries, issued a letter to the Company permitting the mortgage of the said land to any scheduled Bank to obtain financial assistance. Accordingly, the said Company availed of a loan from the Syndicate Bank by mortgaging the said land by depositing the said allotment letter-cum-agreement (unregistered) and the permission to mortgage as an equitable mortgage. Since the said Company could not keep up its commitment, the Syndicate Bank filed a Petition in the year 1995 before the Debt Recovery Tribunal, Bangalore, for the recovery of more than Rs.2.5 crores and the Bank intended to enforce it charge on the property. The petition was allowed by the DRT and a Recovery Certificate was issued on 1.7.1997. It resulted into multiplicity of litigation and the Division Bench of Andhra Pradesh High Court took up all the writ petitions for consideration and after hearing all the parties, it held that Syndicate Bank did not act diligently in advancing huge financial assistance to the Company on the strength of a letter of no-objection purported to have been issued by the Director of Industries and it was surprising that Syndicate Bank equated that letter to that of a title deed and, accordingly, advanced monies without taking proper care and caution as the Government merely granted permission by putting the Company in possession of the land and the property always remained with the Government. No sale deed was executed by the Government in favour of the Company and the Company had taken APIIC, as well as the Syndicate Bank, for a ride. In the circumstances the Hon’able High Court held the Proclamation of Sale Notice dated 21.1.1998 issued by the Recovery Officer as ultra virus. It further held that the Letter dated 3.8.1972 by no stretch of imagination could be characterized as a document of title so as to enable the Company to mortgage the same by deposit of title deeds in order to secure financial assistance from the Syndicate Bank.

Aggrieved by the said judgment of Andhra Pradesh High Court, the Syndicate Bank went to the Supreme Court of India by way of various appeals, mainly, being Civil Appeal No.7824 of 2004 (Supreme Court - Daily Orders Syndicate Bank vs Estate Officer And Manager ... on 20 February, 2019 https://indiankanoon.org/doc/85953436/). The matter was listed before Hon’able Mr. Justice S.B. Sinha and Hon’able Mr. Justice Markandey Katju on 30.8.2007. It was pleaded on behalf of Syndicate Bank that a valid equitable mortgage was created by deposit of the allotment/Agreement dated 3.8.72 with the permission letter of the same date from the Director of Industries for the mortgage in favour of the financial institutions and these documents were the documents of title within the meaning of section 58 (f) of the Transfer of Property Act. The learned Solicitor General and Senior Counsel Shri A.K.Ganguli, appearing on behalf of State Government and APIIC, submitted that the Agreement dated 3.8.72 being not registered, no title was conferred on the Company and pursuant whereto, the company had not derived any assignable title. The letter dated 3.8.72 issued by the Director of Industries was not being a document of title, the judgment of the High Court could not be assailed. The main question which arose for consideration of the Hon’able Supreme Court was whether for satisfying the requirements of the said Section 58 (f), it was necessary to deposit documents showing complete or good title and whether all the documents of title to the property w2ere required to be deposited. A ‘fortion’ the question which would arise for consideration is as to whether in all such cases, the property should have been acquired by reason of a registered document.

After weighing various arguments and the case laws cited on behalf of both the parties, the Hon’able Supreme court in this case, reported as CDJ-2007-SC-948 on 30.8.2007 observed that Section 58 of the Transfer of Property Act does not speak of mortgage of an owner’s interest. If any interest in property can be created by reason of a transaction or otherwise which does not require registration, in our opinion, it may not be necessary to have a full title before such a mortgage is created by deposit of title deeds. In a case of this nature where valuable rights is created which may or may not confer an assignable right, the question requires clear determination having regard to the equitable principle in mind and would have far reaching consequences, as a large number of banks and financial institutions advance a huge amount only on the basis of allotment letters. Keeping in view the importance of the questions raised at the Bar, the question require the consideration by a larger bench so that an authoritative pronouncement can be made there upon”.

It is a well known fact that the apartments constructed by the government bodies or the builders in the present day context cannot be acquired without availing of the financial assistance from the financial institutions, who would require security for the same by way of mortgage of the property to be purchased from the amount so advanced. The question arises why the government bodies such as CIDCO or MAHADA cannot just have a fresh look to its terms and conditions inasmuch as CIDCO permits mortgage of the apartment but it contains a rider reading as

“it may please be noted that no lien of whatever nature will be created on the above apartment allotted to you unless you pay in full the sale price and other miscellaneous charges and execute agreement for sale with CIDCO. It is necessary for you to inform your employer/bank/financial institution, as the case may be, to inform to the corporation (CIDCO) the details of the housing loan sanctioned and released so as to enable us to take a note therein in our records.”

On the one hand permission to mortgage is granted and details are sought to take a note in the records, but on the other hand it refuses for the creation of any lien or the charge against the apartment. Is it not contradictory in itself. MAHADA goes a step further inasmuch as it issues only a provisional offer letter and the allotment letter is issued only on the payment of full sale consideration and the compliance of the other requirements. It is disputable that such a provisional offer letter will create any valuable right in the allottee, leaving aside the question of assigning of such a right yet to be determined by larger bench of the Hon’able Supreme Court of India. It would be appropriate that when the matter comes up for determination before the larger bench, the judgment of the Hon’able Supreme Court in the case of H.L.Joshi v/s. R.H.Shah reported as AIR-1975-SC-1470 wherein it has been held that the occupancy rights in a flat in a cooperative housing society are heritable transferable and attachable in an auction sale is brought to its notice.

Be that as it may, till the authoritative pronouncement of the larger bench of the Hon’able Supreme Court of India is available it would be advisable for the financial institutions to advance housing loans against the allotment letters issued by such government bodies on the basis of a collateral security of equal amount to their satisfaction as a stop-gap arrangement, till the sale deed in case of the apartment allotted by such government bodies is executed. Because if the judgment of the larger bench is not on expected lines, all such finance will become clean loans out the purview of SARFAECI Act and the legal action in default cases will add more weight on the existing over-burdened judicial system. Hence, it would be prudent for the financial institution to err on safer side.

Source https://accommodationtimes.com/home-loan-against-the-security-of-the-allotment-latters/

IN THE SUPREME COURT OF INDIA

CIVIL APPELLATE JURISDICTION

CIVIL APPEAL NOS.7824-7828 OF 2004 

SYNDICATE BANK    VERSUS   ESTATE OFFICER AND MANAGER (RECOVERIES) & ORS RESPONDENT(S)

How to prove right of easement?

On considering the rival submissions and on close scrutiny of the evidence, it would reveal that the plaintiff did not adduce satisfactory evidence to show that he has acquired easement by prescription. An easement can be acquired by prescription under Section 15 of the Easements Act.Every occupier of the land is prima facie entitled to the exclusive use and enjoyment thereof and of the natural advantages arising from its situation and environments without let or hindrance. Every right of easement claimed is a restriction on such exclusive right and is an evasion of it. Hence, the burden of proof of the element constituting a right of easement lies on the person who asserts that right and thereby invades the natural right of the occupier of the land on which the right is claimed. The law is jealous of a claim to an easement, and the burden is on the party asserting such a claim to prove it clearly. This, he must do by showing a grant conferring an easement in express term or by necessary implication, or where an easement is claimed by prescription, he must prove the facts essential to the acquisition of the prescriptive title. Thus, he must show that the user was open and notorious, that it was with the knowledge and acquisition of the owner of the servient tenement that the use was continuous and uninterrupted hostile and under a claim of right, exclusive and continued for the period requisite for the acquisition of an easement by prescription, without change or material variation. Where an easement is claimed as a partenant to certain land, the burden is on the party claiming it to show that the original grantee of an easement was the owner of the land in question at the time of the grant. When the party claiming the easement had made prima facie showing of a prescriptive title, it is then incumbent on the owner of the survient tenement to show by sufficient affirmative proof that the use has been by virtue of a licence or permission or any other defence which would destroy the prima facie showing. On the other hand, where the servient owner sets up the defence of bona fide purchaser and proves the purchase, payment for, and ownership of the land, the burden then shifts to the claimant to show that such owner had actual or constructive notice of the easement before the purchase. The question whether a cultivator has access to his field through the field of another has to be decided on the basis of convenience and not on the basis of acquisition of right of way by prescription. A right of way may be acquired by prescription where the same has been peaceably and properly enjoyed by any person claiming title thereto as an easement, and as of right, without any interruption and for 20 years. Thus, in the present case it is for the plaintiff to prove that the disputed path way was being used openly and peaceably for 20 years.

Bombay High Court

 

Tanba S/O Nusaji Mahajan vs Pandhari S/O Nusaji Mahajan on 5 May, 2004

Equivalent citations: 2004 (6) BomCR 782, 2004 (4) MhLj 109

Source https://www.lawweb.in/2016/07/how-to-prove-right-of-easement.html?m=1

Jurisdiction of Consumer Forum_State Commission

18.         No doubt, in the written version, an objection was also taken by the Opposite Parties, that as per Clause 35 of the Agreement, the Courts at Mohali and the Punjab and Haryana High Court at Chandigarh alone, shall have the exclusive Jurisdiction, to entertain and adjudicate the complaint, and, as such, the Jurisdiction of this Commission was barred. It may be stated here that all the provisions of the Code of Civil Procedure are not applicable, except those, mentioned in Section 13 (4) of the Act, to the proceedings, in a Consumer Complaint, filed under the Act. For determining the territorial jurisdiction, to entertain and decide the complaint, this Commission is bound by the provisions of Section 17 of the Act. In  Associated Road Carriers Ltd., Vs. Kamlender Kashyap & Ors., I (2008) CPJ 404 (NC), the principle of law, laid down, by the National Commission, was to the effect, that a clause of Jurisdiction, by way of an agreement, between the parties, could not be made applicable, to the Consumer Complaints, filed before the Consumer Foras. It was further held, in the said case, that there is a difference between  Sections 11/17 of the Act, and the provisions of Sections 15 to 20 of the Civil Procedure Code, regarding the place of jurisdiction. In the instant case, as held above, a part of cause of action arose to the complainant, within the territorial Jurisdiction of this Commission, at Chandigarh. In  Ethiopian Airlines Vs Ganesh Narain Saboo, IV (2011) CPJ 43 (SC)= VII (2011) SLT 371, the principle of law, laid down, was that the restriction of Jurisdiction to a particular Court, need not be given any importance in the circumstances of the case.

19.         In  Cosmos Infra Engineering India Ltd. Vs Sameer Saksena & another I (2013) CPJ 31 (NC) and Radiant Infosystem Pvt. Ltd. & Others Vs D. Adhilakshmi & Anr I (2013) CPJ 169 (NC) the agreements were executed, between the parties, incorporating therein, a condition, excluding the Jurisdiction of any other Court/Forum, in case of dispute, arising under the same, and limiting the Jurisdiction to the Courts/Forums at Delhi and Hyderabad. The National Commission, in the aforesaid cases, held that such a condition, incorporated in the agreements, executed between the parties, excluding the Jurisdiction of a particular Court/Forum, and limiting the Jurisdiction to a particular Court/Forum, could not be given any importance, and the complaint could be filed, at a place, where a part of cause of action arose, according to  Sections 11/17 of the Act. The principle of law, laid down, in the aforesaid cases, is fully applicable to facts of the instant case. It may also be stated here, that even if, it is assumed for the sake of arguments, that the complainant had agreed to the terms and conditions of the agreement, limiting the Jurisdiction to the Courts, referred to above, the same could not exclude the Jurisdiction of this Commission, at Chandigarh, where a part of cause of action accrued to   him, to file the complaint, under the provisions of the Act. The submission of Counsel for the Opposite Parties, in this regard, therefore, being devoid of merit, must fail, and the same stands rejected.

State Consumer Disputes Redressal Commission U.T., CHANDIGARH

Harmohinder Singh vs Puma Realtors Pvt. Ltd. on 10 March, 2017

https://indiankanoon.org/doc/133018129/                    

No condonation of delay_judgments

Hon’ble Supreme Court in Bikram Dass Versus Financial Commissioner and others, AIR 1977 Supreme Court 1221 has held as under:-

“Section 5 of the Limitation Act is a hard task-master and judicial interpretation has encased it within a narrow compass. A large measure of case law has grown around S.5, its highlights being that one ought not easily to take away a right which has accrued to a party by lapse of time and that therefore a litigant who is not vigilant about his right must explain every day’s delay.”

The grounds taken in the application are a sad commentary on the working of the employees of the appellants and these grounds are manifestation of the laxity, negligence and inefficiency.  To accept such grounds as sufficient cause for condonation of delay would tantamount to putting premium on the parties own acts of negligence and non challance.  So, this Commission does not find it a fit case to condone the delay of 325 days. Hence, the application for condonation of delay is dismissed.”

Hon’ble Supreme Court in “Anshul Aggarwal Vs. New Okhla Industrial Development Authority” [2012(2) CPC (SC)] observed as under:-

“While deciding an application filed in such cases for condonation of delay, the Court has to keep in mind that the special period of limitation has been prescribed under the Consumer Protection Act, 1986, for filing the appeals and revisions in Consumer matters and the object of expeditious adjudication of the Consumer disputes will get defeated, if this Court was to entertain highly belated Petitions filed against the orders of the Consumer Foras.”

In “R. B. Ramalingam Vs. R. B Bhavaneshwari, 2009 (2) Scale 108”, the Apex Court has observed thus:-

“We hold that in each and every case, the Court has to examine whether delay in filing the special appeal leave petitions stands properly explained. This is the basic test which needs to be applied. The true guide is whether the Petitioner has acted with reasonable diligence in the prosecution of his appeal/petition”

In “Ram Lal and Ors. Vs. Rewa Coalfields Ltd., AIR 1962 Supreme Court 361”, it has been observed:-

“It is, however, necessary to emphasise that even after sufficient cause has been shown a party is not entitled to the condonation of delay in question as a matter of right. The proof of a sufficient cause is a condition precedent for the exercise of the discretionary jurisdiction vested in the Court by S.5. If sufficient cause is not proved nothing further has to be done; the application for condonation has to be dismissed on that ground alone. If sufficient cause is shown then the Court has to enquire whether in its discretion it should condone the delay. This aspect of the matter naturally introduces the consideration of all relevant facts and it is at this stage that diligence of the party or its bona fides may fall for consideration; but the scope of the enquiry while exercising the discretionary power after sufficient cause is shown would naturally be limited only to such facts as the Court may regard as relevant.”

NCDRC_deemed to have condoned the default

NCDRC has recently delivered judgment dated 21-11-2017 in CC No. 1730 OF 2016 tilted as PRAVEEN @ PARVEEN KUMAR JAIN & ANR v/s  EARTH INFRASTRUCTURES LTD. & ANR by adopting “deemed condoned theory” against the builder instead of customer. Below is the relevant Para of the judgement:  

“5.   As regards, the alleged default on the part of the complainant, it would be seen form the payment plan agreed between the parties that 65% of the BSP was required to be paid by the start of 4^th floor work.  The (viii) installment was payable at the start of the 7^th floor work, (ix) installment was payable at the start of 10^th floor (x) installment was payable at the start of 12^th floor work.  The complainant made last payment in July, 2015, as would be evident from the Sales Customer Ledger of the opposite party.  He paid more than 65% of the Basic Sale Price by that date.  There is no evidence or even an allegation that 7^th floor work had already started by the time last payment was made by the complainant.  The written version filed by the opposite party does not show when the 7^th floor work, 10^th floor work and 12^th floor work started.  It is also not known whether the aforesaid work started before filing of this complaint or after filing of this complaint.  In the absence of the aforesaid particulars, and the proof thereof, the complainant cannot be said to be a defaulter in payment of viii, ix and x installments.  In any case, if the complainant was in default in making payment, the opposite party ought to have cancelled his installment and could even have forfeit the Earnest Money as per the terms and conditions of the Buyers agreement.  That having not been done, the opposite party is deemed to have condoned the aforesaid default.  Consequently, the relief sought by the complainant cannot be denied on account of the aforesaid alleged defaults.”

NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION

NEW DELHI

CONSUMER CASE NO. 1730 OF 2016

1. PRAVEEN @ PARVEEN KUMAR JAIN & ANR. E-184, 2ND FLOOR, NARAINA VIHAR, OPPOSITE GYAN MANDIR PUBLIC SCHOOL, NEW DELHI-110028 2. . . .	...........Complainant(s)
Versus
1. EARTH INFRASTRUCTURES LTD. & ANR. (THROUGH ITS MD) B-100, NARAINA INDUSTRIAL AREA, PHASE-1, DELHI-110028 2. EARTH INFRASTRUCTURES LTD. EARTH COPIA, SECTOR 112, GURGAON, HARYANA.	...........Opp.Party(s)

BEFORE:
	HON'BLE MR. JUSTICE V.K. JAIN,PRESIDING MEMBER

For the Complainant :

Ms. Kajal Chandra, Advocate Ms. Prerna Chopra, Advocate Mr. Viren Kapur, Advocate

For the Opp.Party :

Mr. Himanshu, Advocate for Mr. Abhay Kumar, Advocate

Dated : 21 Nov 2017

ORDER
JUSTICE V.K. JAIN, PRESIDING MEMBER (ORAL)      The complainant booked a residential flat with the opposite party in a project namely ‘Earth Copia’, which the opposite party was to develop in Sector-112 of Gurgaon.  The opposite party allotted residential Unit No.404 in Tower G having super area of 1835 sq. ft. to him for a consideration of Rs.81,78,580/-.  The complainants having opted for a construction linked payment plan, the aforesaid amount was payable in the following manner:       At the time of booking : 10% of the BSP (ii)      Within 45 days from booking : 15% of the BSP Within 120 days from booking : 10% of the BSP plus 50% of   the EDC and IDC At start of Excavation Work : 10% of the BSP At start of Basement Slab : 10% of the BSP plus 50% of the EDC and IDC At start of 2nd floor work : 5% of the BSP At start of 04th floor work : 5% of the BSP At start of 07th floor work : 5% of the BSP plus 50% of  3rd and 4th floor PLC plus 50% of Park Facing PLC plus 50% of road / corner facing PLC At start of 10th floor work : 5% of the BSP At start 12th floor work: 5% of BSP At the start of 14th Floor work : 5% of the BSP At start of Internal Plaster : 5% of the BSP plus 50% of 3rd and 4th floor PLC plus 50% of Park Facing PLC plus 50% of road / corner facing PLC On laying of flooring : 5% of the BSP On offer of Possession : 5% plus 100% of ECC plus 100% of IFMS plus 100% of EEC and FFC plus 100% of Power back-up charges”. 2.      The complainant has paid a sum of Rs.58,74,142.00 to the opposite party in installments, the last payment having been made on 25.7.2015. The possession as per the buyers agreement dated 31.05.2012 was to be delivered within three years from the execution of the said agreement, though the opposite party was allowed a grace period of six months.  Thus, including the grace period, the possession ought to have been delivered by 30.11.2015.  The grievance of the complainant is that despite they having paid a sum of Rs.58,74,142.00 to the opposite party, the construction of the flat allotted to him is not even complete.  The complainants are therefore before this Commission, seeking refund of the entire amount paid along with compensation the form of simple of interest. 3.      The complaint has been resisted by the opposite party which has taken a preliminary objection that this Commission does not have the pecuniary jurisdiction to entertain the complaint.  It is also alleged that the complainant has defaulted in making payment in terms of the payment plan agreed by him since 80% of the sale consideration has become due from him.  It is further stated in the reply to the complaint that the construction has already reached upto 12th floor.  It is however, not disputed that the construction of the flat allotted to the complainant is not complete, though the learned counsel for the opposite party states that the construction is likely to be completed by April, 2018.  He further states that the Directors of the opposite party are already in custody. 4.      In terms of Section 21 of the Consumer Protection Act, this Commission possesses the requisite pecuniary jurisdiction to entertain the complaint, where the value of the goods or services, as the case may, and the compensation, if any, claimed by the complainants exceeds Rupees one crore.  As held by a Three-Members Bench of this Commission in Ambrish Kumar Shukla Vs. Ferrous Infrastructure Pvt. Ltd. CC No. 97 of 2016, decided on 07.10.2016, the value of the services in such cases means, the aggregate consideration agreed to be paid by the buyer to the builder.  Therefore, the agreed sale consideration in this case, being Rs.81,78,580/-, the aforesaid would be value of the services hired or availed by the complainant.  If compensation claimed by the complainant is added to the aforesaid amount, the aggregate comes to more than Rupees one crore.  This Commission therefore possesses the requisite pecuniary jurisdiction to entertain the complaint. 5.      As regards, the alleged default on the part of the complainant, it would be seen form the payment plan agreed between the parties that 65% of the BSP was required to be paid by the start of 4th floor work.  The (viii) installment was payable at the start of the 7th floor work, (ix) installment was payable at the start of 10th floor (x) installment was payable at the start of 12th floor work.  The complainant made last payment in July, 2015, as would be evident from the Sales Customer Ledger of the opposite party.  He paid more than 65% of the Basic Sale Price by that date.  There is no evidence or even an allegation that 7th floor work had already started by the time last payment was made by the complainant.  The written version filed by the opposite party does not show when the 7th floor work, 10th floor work and 12th floor work started.  It is also not known whether the aforesaid work started before filing of this complaint or after filing of this complaint.  In the absence of the aforesaid particulars, and the proof thereof, the complainant cannot be said to be a defaulter in payment of viii, ix and x installments.  In any case, if the complainant was in default in making payment, the opposite party ought to have cancelled his installment and could even have forfeit the Earnest Money as per the terms and conditions of the Buyers agreement.  That having not been done, the opposite party is deemed to have condoned the aforesaid default.  Consequently, the relief sought by the complainant cannot be denied on account of the aforesaid alleged defaults. 6.      It is an admitted position that the construction of the flat allotted to the complainant is not complete even till date, though more than two years have already expired from the time period stipulated for completing the said construction.  The complainant therefore cannot be made to wait indefinitely for the possession of the flat allotted to him.  This is more so, considering the situation where even the Directors of the builder company are said to be in judicial custody.  The complainants therefore are entitled to refund of the entire amount paid by them along with appropriate compensation. 7.      The learned counsel for the complainants states on instructions from one of the complainants, who is present in the Court, that though the complainants have claimed compensation in the form of simple interest @ 24% per annum, they in order to avoid further litigation in the matter are restricting their claim to refund of the principal amount paid by them along with compensation in the form interest @ 10% per annum and the cost of litigation. 8.      The complaint is therefore disposed of with the following directions: (i)      The opposite party shall refund the entire principal amount of Rs.58,74,142.00 received from the complainant along with compensation in the form of simple interest @ 10% per annum from the date of each payment till the date on which the entire amount long with compensation in the form of simple interest is refunded. (ii)      The opposite party shall pay Rs.25,000/- as the cost of litigation to the complainants (iii)     The payment in terms of this order shall be made within three months from today.

......................J

V.K. JAIN

PRESIDING MEMBER

False and frivolous consumer cases_few case laws

49. It is a typical example how a litigation proceeds and continues and in the end there is a profit for the wrongdoers.

50. Learned Amicus articulated common mans general impression about litigation in following words :

Make any false averment, conceal any fact, raise any plea, produce any false document, deny any genuine document, it will successfully stall the litigation, and in any case, delay the matter endlessly. The other party will be coerced into a settlement which will be profitable for me and the probability of the court ordering prosecution for perjury is less than that of meeting with an accident while crossing the road.

28. In our opinion, the present petition is nothing but a gross abuse of process of law and the revision petition is totally false, frivolous and bogus one, which is required to be dismissed with punitive costs of Rs.75,000/-.

National Consumer Disputes Redressal

Narayana Iit Academy vs Atishya Jain, on 14 February, 2012

REVISION PETITION NO.4142 OF 2011 

https://indiankanoon.org/doc/105078049/

R. Narasimha Reddy Vs Kuchakula Surender Reddy ( FA No 502 of 2011, decided on March 5, 2012), the Commission had said: “Equity demands that such unscrupulous litigants whose only aim and object is to deprive the opposite party (complainants or consumers) of the fruits of the decree must be dealt with a heavy hand.” Punitive damages of Rs 1 lakh were imposed on a builder in this case for filing vexatious appeal.

Emaar MGF Land Ltd Vs Karnail Singh and Another (FA No 342 of 2014, pronounced on July 25, 2014), the apex consumer court came down heavily upon the realtor for ‘gross abuse of the process of law’ and imposed exemplary damages of Rs 5 lakh. While doing so, the Commission quoted the Supreme Court in Ramrameshwari Devi and Ors Vs Nirmala Devi and Ors (CA No 4912-4913 of 2011, decided on July 4, 2011) wherein it was observed that unless the courts ensure that wrong doers are denied profit or undue benefit from frivolous litigation, it would become very difficult to curb such practices.

 the Delhi Development Authority Vs D.C. Sharma (RP No 895 of 2013, decided on Feb 18, 2014), for example, the National Consumer Disputes Redressal Commission expressed its strong displeasure over those who filed frivolous appeals and slapped a penalty of Rs 5 lakh on the Delhi Development Authority. Quoting several Supreme Court judgements on the subject, the two member bench of the Commission, consisting Justice V.B. Gupta and Rekha Gupta said: “… no leniency should be shown to such type of litigants, who, in order to cover up their own fault and negligence, go on filing meritless petitions in different Fora.” the apex consumer court pointed out that the complaint was not false and frivolous, but the defence put up by the DDA was!

http://www.tribuneindia.com/news/spectrum/society/-false-frivolous-or-pure-harassment/392434.html

22. Honble Supreme Court in S.P.Chengalvaraya Naidu (dead) by LRs Vs. Jagannath (dead) by LRs & Ors., (1994) 1 SCC 1 has observed ;

The courts of law are meant for imparting justice between the parties. One who comes to the Court, must come with clean hands. We are constrained to say that more often than not, process of the Court is being abused. Property-grabbers, tax-evaders, bank-loan-dodgers and other unscrupulous persons from all walks of life find the court-process a convenient lever to retain the illegal-gains indefinitely. We have no hesitation to say that a person, whos case is based on falsehood, has no right to approach the court. He can be summarily thrown out at any stage of the litigation.

 

23. In Ravinder Kaur Vs. Ashok Kumar, AIR 2004 SC 904, Apex Court observed ;

Courts of law should be careful enough to see through such diabolical plans of the judgment debtor to deny the decree holders the fruits of the decree obtained by them. These type of errors on the part of the judicial forum only encourage frivolous and cantankerous litigations causing laws delay and bringing bad name to the judicial system.

24. It is well settled that no leniency should be shown to such type of litigants who in order to cover up their own fault and negligence, goes on filing meritless petitions in different foras. Time and again Courts have held that if any litigant approaches the Court of equity with unclean hands, suppress the material facts, make false averments in the petition and tries to mislead and hoodwink the judicial Forums, then his petition should be thrown away at the threshold. Equity demands that such unscrupulous litigants whose only aim and object is to deprive the opposite party of the fruits of the decree must be dealt with heavy hands.

25. Now question which arises for consideration is as to what should be the quantum of costs which should be imposed upon the petitioners for dragging the respondent upto this fora, when petitioners had no case at all. It is not that every order passed by the judicial fora is to be challenged by the litigants even if the same are based on sound reasonings.

26. Apex Court in Ramrameshwari Devi and Ors. Vs. Nirmala Devi and Ors., Civil Appeal Nos.4912-4913 of 2011 decided on July 4, 2011 has observed ;

45. We are clearly of the view that unless we ensure that wrong doers are denied profit or undue benefit from the frivolous litigation, it would be difficult to control frivolous and uncalled for litigations. In order to curb uncalled for and frivolous litigation, the Courts have to ensure that there is no incentive or motive for uncalled for litigation. It is a matter of common experience that courts otherwise scarce and valuable time is consumed or more appropriately wasted in a large number of uncalled for cases.

46. Usually the court should be cautious and extremely careful while granting ex-parte ad interim injunctions. The better course for the court is to give a short notice and in some cases even dasti notice, hear both the parties and then pass suitable biparte orders. Experience reveals that ex-parte interim injunction orders in some cases can create havoc and getting them vacated or modified in our existing judicial system is a nightmare. Therefore, as a rule, the court should grant interim injunction or stay order only after hearing the defendants or the respondents and in case the court has to grant ex-parte injunction in exceptional cases then while granting injunction it must record in the order that if the suit is eventually dismissed, the plaintiff or the petitioner will have to pay full restitution, actual or realistic costs and mesne profits.

National Consumer Disputes Redressal

1. Shri Dhanajay Nagesh Naik & Ors. vs Shri Sudam Gopal Pednekar on 27 April, 2012

REVISION PETITION NO. 144 OF 2012 

https://indiankanoon.org/doc/53029117/?type=print