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The Managing Director (Shri Grish Batra), M/s. Padmini Infrastructure Developers (I) Ltd. v. The General Secretary (Shri Amol Mahapatra), Royal Garden Residents Welfare Association

Civil Appeal · 2021 INSC 562Decided 28 Sept 2021
Civil Appeal No. 2998 of 2010
Justice Hemant Gupta · Justice V. Ramasubramanian

Background

A builder promoted a residential apartment complex and handed over common amenities (water softening plant, fire-fighting system, health clubs, swimming pools, a club house) to the residents' welfare association in 2003, but several of these facilities were never made fully operational. The association filed a consumer complaint before the National Consumer Disputes Redressal Commission (NCDRC), which after a local inspection partly allowed the complaint and directed the builder to complete the facilities or pay the estimated cost. Both the builder and the association (dissatisfied with rejection of some other claims) appealed to the Supreme Court.

Decision Breakdown

The Court dismissed the complainant-association's appeal, holding that claims for maintenance charges on unsold flats, a bar on selling remaining flats, car-parking directions, and harassment damages were rightly rejected by the NCDRC. On the builder's appeal, the Court agreed the NCDRC's findings on deficient facilities (based on an independent architect's inspection) were sound, but held that 18 years after possession was handed over, it was no longer practical to force the builder to physically complete the facilities. It therefore modified the order: the association would receive the Rs. 60 lakh already deposited by the builder with the Court Registry (plus accrued interest) as full and final monetary compensation in lieu of completion of the facilities, and the builder was directed to vacate and hand over the club house it had been using for storage.

Lesson Learnt

Even where a consumer forum orders a builder to physically complete promised amenities, if years pass before the case is finally resolved, courts may convert that relief into adequate monetary compensation instead, since forcing actual completion can become impractical with time.

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

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