RERA Punjab Complaint against ATS Estate Private Ltd

Last Updated on June 12, 2020 by Satish Mishra

This post covers RERA Punjab Complaint against ATS Estate Private Ltd before Adjudicating Officer wherein the refund of entire amount was allowed along with interest & further compensation for delay in possession on account of mental agony, pain and harassment. RERA Punjab Authorities are strict for builder for defying possessions timeline where customer suffers for delay indefinitely. Thus the purpose of RERA was solved when genuine grievances are settled.

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Complaint under Section 31 of Real Estate (Regulation and Development) Act, 2016

 Real Estate Regulatory Authority, Chandigarh, Punjab

Before Sh. Balbir Singh, Adjudicating Officer

Appellant- Sundar Krishnan, resident of Maharashtra as well as Chandigarh

Represented by Advocate Shri Himanshu Raj

                        V/s

Respondent- ATS Estate Private Ltd., Nehru Place, New Delhi

Represented by Advocate Shri Harsh Banger

Complaint No. TR AO/52/2019

Date- 04-03-2020

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Brief Facts of the Case-

1. The complainant filed a complaint against the ATS Estates Private Ltd. For the violation of Section 18 and seeking for refund and interest etc. in this case the complainant paid the sum of Rs.25,25,000/- which is the total price of the plot measuring 350 sq. yards in a project named ATS Golf Meadows but its possession has not been handed over to him till date. It was to be delivered within two years from the allotment of the plot bearing no. 120.
2. The respondent filed written reply that violation of Act and delay in handing possession is not done on his part he was handing over the possession on completing of the project which is period of none years up to 31-08-2026, so complainant is not entitled to refund, interest or compensation. He stated that the sell agreement was not executed between them; the complainant being only investor obtained an allotment letter and the project has already been completed.
3. It was found that the complainant booked plot of 338 sq. yards not 350 sq. yards by allotment letter dated 03-11-2009. The delay in completion of project was due to some Public Interest Litigation, there was no fault of respondent and he also conveyed a notice for allotment and registration of plot to all the allotees.

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4. Therefore the complaint Form- M GC No. 1178/2019 was dismissed, and then it converted to Form-N by amendment in the light of order dated 27-02-2020 passed but the Real Estate Appellate Tribunal, Punjab in Appeal No. 53 of 2018 Sandeep Mann v/s RERA and other connected appeals.
5. In this appeal the representative of the complainant stated that the complainant had deposited Rs.25,25,000 to the respondent but the possession was not delivered to him within time so the complainant is entitled to refund of amount with interest and compensation. The representative of respondent stated that the project was registered with RERA Authority in Sept 2017 and period of 9 years was provided for completion of project which will expire in August 2026 so the complaint is pre-mature. Also the sell agreement was not executed between parties so complainant could not seek relief inthis Act.
6. The agreement was execute on 14-03-2008 which is prior to coming on force of the Act so the provision of this act are not applicable on this case. There was an arbitrator clause according to the dispute it was to be referred to the arbitrator and this Bench has no jurisdiction to adjudicate.

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7. It was argued by the respondent that there was no specified time period mentioned in the allotment letter and the complainant cannot take benefit of the provision of the Act when the specific provision are already mentioned in the allotment letter of 03-11-2009 therefore the complaint is liable to be dismissed.
8. The Authority contended that According to the Section 13(1) of the Act, the respondent could not receive the amount more than 10% without executed written agreement for sale in favor of the complainant. Therefore there was the responsibility of the respondent to get the agreement executed because he had obtained more than 10% of amount so the fault lies on the respondent.
9. Respondent stated that present complaint pertained to the allotment letter dated 03-11-2009 which is prior of the enforcement of the Act but this submission is devoid because the present case was ongoing and had not been completed till date and it is settled law that the Act would certainly regulate the existing contracts. By the Hon’ble Bombay High Court in case of Neel Kamal Realtors Suburban Pvt. Ltd and Another v. Union of India and others, it was held that the provision of the Act would be applicable to cover up the ongoing project got registered with RERA.

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10. A joint reading of Section 79, 88 and 89 of act despite of being arbitration clause the remedy available to the complainant under the Act still subsists.
11. There was an oral assertion on behalf of the respondent that project was to be completed within two years from the issuance of the allotment letter but project was not completed despite lapse of unreasonable period of more than nine years. Thus this was unfair trade practice on behalf of respondent.
12. In view of the provisions of Section 18 the respondent is bound to offer the possession in case of non-delivery he is liable to refund the amount paid by the complainant. The fact is that the respondent has been using the paid amount by the complainant so he is liable to refund the amount with interest.

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Judgement-

It was held by the Authority that the complainant is entitled to the refund of the amount of Rs.25,25,000/- paid by him to the respondent along with the interest on rate of 2% of the amount as per the Rule 16 of the Act, from the date of payment till date of realization. Since the complainant could not buy the plot for the construction of his house he suffered mental agony and has to incur expenses to pursue his claim so the compensation will granted under the Section 72 of the Act. According to the extent of mental agony and harassment the complainant is entitled for the compensation of Rs.1, 25,000/-. The respondent was directed to pay the total said amount to the complainant with in sixty days from the date of this order.

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For case specific advice about RERA Punjab Complaint against builders like ATS Estate for Delay in Possession, homebuyers can contact best top real estate Punjab RERA Authority Lawyers Advocates for Legal Advice in Chandigarh Panchkula Mohali Derbassi Zirakpur Kharar.

This post is written by Apoorva Gupta.

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