Society to pay 8-year rent for delaying flat possession

Ramkrishan Upadhyay

Tribune News Service

Chandigarh, October 2

In a significant judgment, the District Consumer Disputes Redressal Commission, Chandigarh, has penalised Nirvana Co-Op House Building (First) Society Ltd, Plot No. 48, for not handing over the possession of a flat to a member, Asha Sharma, despite issuing no dues certificate (NDC). An office of the society was run from her flat.

Holding the society guilty of indulging in unfair trade practices, the commission directed it to pay Rs1 lakh as compensation to the complainant for causing her mental agony and harassment as well as litigation expenses.

The commission also directed the society to pay Rs10,000 per month for a period of eight years from the issuance of the NDC (2009) till the date of delivery of possession (2017) of the flat to the complainant.

In the complaint filed before the commission, Asha said as a member of the society, she deposited Rs1,60,725 on January 31, 2008, to the management of the society as the principal cost of the land and lease money.

The society issued no dues certificate (NDC) on June 24, 2009. She alleged that despite the receipt of all dues and the issuance of an NDC in 2009, the society demanded Rs1,20,712 on November 28, 2016.

She said she deposited that amount also. She alleged that the society had not given the possession of the flat despite her repeated requests. She alleged that the society had run its office from her flat illegally from August 1, 2008, till January 1, 2011, without paying any rent or charges and delayed the delivery of possession of flat. She sent a legal notice to the society on July 5, 2018, but to no avail.

Kamal K Sharma, counsel, filed the reply on behalf of the society and denied all allegations. He claimed that the complaint is barred by limitation. He argued that the dues were paid on December 31, 2009, whereas the full and final payment was made by the complainant on October 25, 2016, and on the same day, the possession of the flat was handed over to her, and the permission for mortgage was given.

He argued that the complainant couldn’t claim any rent, as alleged, as the flat remains the property of the society till the possession is given to a member.

After hearing the arguments and examining the records, the Commission, comprising its President Rajan Dewan and member BM Sharma, said the society remained grossly deficient in its services and indulged in unfair trade practices by belatedly delivering the possession of the flat.

What consumer panel observed

The District Consumer Disputes Redressal Commission, Chandigarh, observed, “A buyer/complainant having paid her hard-earned money to have a house is not supposed to be kept on waiting for long, especially after making payment and issuance of no-dues certificate. Therefore, the deficiency in service as well as unfair trade practice resorted to by OPs (society) is clearly established, which not only caused financial loss to the complainants but also caused them immense harassment and mental agony.”