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M/S Siddhyvinayak Infrastructure vs Kamalakar Jayant Srivastava

Civil Appeal · 2022 INSC 828Decided 12 Aug 2022
Civil Appeal No. 5208 of 2022
Dr. D.Y. Chandrachud · J.B. Pardiwala · Aniruddha Bose

Background

A homebuyer in Nagpur had agreed in 2006 to buy a twin bungalow from a developer for about Rs. 9.74 lakh, with part of the price to be funded by a bank loan. The loan was sanctioned but never disbursed because required documents were not furnished, and a dispute arose over whether the buyer or the developer was at fault. The District Consumer Forum ordered the developer to complete construction and hand over possession; on revision, the National Consumer Disputes Redressal Commission modified this, directing the developer to hand over possession after obtaining an occupation certificate and the buyer to pay the balance price. The developer appealed to the Supreme Court, and the buyer did not appear at all to contest the appeal.

Decision Breakdown

The Supreme Court declined to rule on the correctness of the National Commission's order, noting the unusual facts: 16 years had passed since the original 2006 agreement, the buyer had never paid the balance sale consideration despite the loan being available in 2006, and the buyer did not even appear before the Supreme Court to defend the order in his favour. Given this, the Court held it would be unjust to force the developer to execute the sale deed at this late stage. Instead, it modified the National Commission's order so that the developer need only refund a sum of Rs. 3,24,780 (which had earlier been deposited as a condition of stay) with 12% interest from the date of the original agreement, after which the developer would have no further liability regarding the property.

Lesson Learnt

Courts will not force specific performance of a long-delayed property transaction, especially where the consumer has not diligently pursued their own obligations (such as paying the balance price) or even appeared to defend a favourable order: practical justice, not rigid enforcement, guides relief after such prolonged inaction.

Official source (sci.gov.in)View Judgment (PDF)

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