SC Upholds NCDRC’s Compensation Order Against Builder for Delay in Delivery of Flats:

SC Upholds NCDRC’s Compensation Order Against Builder for Delay in Delivery of Flats In this case, a group of homebuyers filed complaints before the National Consumer Disputes Redressal Commission (NCDRC) alleging that the developer had failed to deliver possession of their flats within the stipulated time despite having received substantial payments. The NCDRC found the builder guilty of deficiency in service and unfair trade practices, directing the refund of deposited amounts with interest and compensation for mental agony and litigation costs. Aggrieved by this decision, the builder approached the Supreme Court contending that the delay was due to force majeure conditions, including regulatory hurdles and shortage of raw materials, and that the compensation awarded was excessive. The buyers defended the NCDRC’s findings, asserting that the delay was unreasonable and that the builder continued to benefit financially by holding their funds. Issue Raised: Whether the NCDRC’s award of compensation and refund for delay in delivery of possession was justified under consumer protection law despite the builder’s claim of unavoidable circumstances. SC Decided: The Supreme Court dismissed the builder’s appeal and upheld the NCDRC’s order in toto, reiterating that builders are bound to deliver possession within the committed period and cannot use consumers’ money as a source of financing. The Court found no material to support the plea of force majeure, holding that routine administrative delays or supply shortages cannot be stretched to excuse non-performance of contractual obligations. Emphasizing the principles of consumer fairness, the Bench observed that refunding the amount with interest serves as a just and equitable measure, compensating for both the financial and emotional distress caused to homebuyers. It reaffirmed that consumer fora are empowered to grant such reliefs to ensure accountability in the real estate sector. To Read Full Judgment, Download PDF Given Below