Realtor told to hand over plot or refund Rs.11-lakh deposit
Mohali, June 5 -- The Mohali District Consumer Disputes Redressal Commission has directed a real estate developer to either hand over possession of a residential plot booked 15 years ago or refund the buyer's Rs.11 lakh deposit with 9% interest, after rejecting the builder's defence that possession had become impossible due to non-availability of land.
The commission ordered Preet Land Promoters and Developers Pvt Ltd to deliver possession of a 200-square-yard plot in its Preet Land City project in Sector 86 within two months, complete with occupation and completion certificates. Failing that, the developer has been directed to refund Rs.11 lakh deposited by the allottee along with 9% annual interest from the dates of deposit. The complainant, Bhajan Singh of Phase 5, Mohali, had been allotted Plot No. 320 in March 2011 for a total consideration of Rs.14 lakh. According to the complaint, the developer was required to develop the project and hand over possession within three years, by March 2014, but failed to do so. In its defence, the developer argued that possession could not be delivered as no land was available and invoked the legal maxim "lex non cogit ad impossibilia", meaning the law does not compel a person to do the impossible. The company contended that directing it to hand over possession would be unenforceable and that refund of the deposited amount was the only practical remedy.
Rejecting the plea, the commission observed that the developer had collected substantial consideration from the allottee but neither completed development nor offered possession.
It held that administrative difficulties, policy changes and disputes with government authorities could not be used to defeat the rights of consumers after retaining their money for over a decade. The commission also dismissed the builder's objection that the complaint was time-barred, holding that in cases of non-delivery of possession, the cause of action continues so long as possession is not handed over or the deposited amount is not refunded. Holding the developer guilty of deficiency in service and unfair trade practice, the panel awarded Rs.1 lakh as compensation for mental agony. The commission ruled that if possession is ultimately delivered within the stipulated period, the complainant would still be entitled to 9% interest on the deposited amount from the date of deposit until the date possession is handed over....
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