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Ravinder Singh Chana vs Khanna Properties and Infrastructures Pvt. Ltd.

Civil Appeal · 2022 INSC 1319Decided 24 Aug 2022
Civil Appeal No. 5793 of 2022
S. Abdul Nazeer · J.K. Maheshwari

Background

A homebuyer had paid Rs. 21,18,000 towards a flat, but the builder failed to complete construction within the promised time. The State Consumer Disputes Redressal Commission, Bhopal, ordered the builder to refund the full Rs. 21.18 lakh with 9% interest and Rs. 5,000 in costs. On the builder's revision, the National Consumer Disputes Redressal Commission reduced the refund amount to Rs. 16.18 lakh with 9% interest. The buyer appealed to the Supreme Court against this reduction.

Decision Breakdown

The Supreme Court held that the National Commission had erred in partially reversing the State Commission's order. After hearing both sides and examining the record, the Court found no valid reason to reduce the amount awarded by the State Commission. It set aside the National Commission's order and restored the State Commission's original order in full, directing the builder to refund the amount as per that order within two months.

Lesson Learnt

When a builder fails to deliver a flat on time, consumers are entitled to a full refund of the amount paid with interest, and a buyer who wins a larger refund at the state consumer forum should not automatically lose ground on appeal to a higher forum. The Supreme Court will restore the original, more protective order if the reduction was unjustified.

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

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