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G H M/S TREATY CONSTRUCTION & ANR. versus M/S RUBY TOWER CO-OP. HSG. SOCIETY LTD.

Citation: [2019] 9 S.C.R. 606 · Decided: 19-07-2019 · Supreme Court of India · Bench: ABHAY MANOHAR SAPRE · Disposal: Case Partly allowed

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Judgment (excerpt)

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606
SUPREME COURT REPORTS
[2019] 9 S.C.R.
M/S TREATY CONSTRUCTION & ANR.
v.
M/S RUBY TOWER CO-OP. HSG. SOCIETY LTD.
(Civil Appeal No. 5699 of 2019)
JULY 19, 2019
[ABHAY MANOHAR SAPRE AND
DINESH MAHESHWARI, JJ.]
Consumer Protection – Deficiency of service – Appellants
evolved a scheme of  constructing a building consisting of flats and
shops – Purchasers of those flats and shops formed a co-operative
housing society – In relation to the project in question, dispute arose
between the members of the respondent-society and appellants-
builders – Respondent-society contended that appellants failed to
complete the interior works and failed to obtain the completion
certification as also the occupancy certificate – It was also alleged
that appellants borrowed varied sums of money from the respondent-
society on pretext of completing the unfinished work – On the other
hand, appellants contended that delay was due to the obstruction
caused and created by the respondent, who had made illegal
construction/alterations – State Commission, inter alia, directed
appellants to execute Deed of conveyance of the property in question
after obtaining the completion certificate and occupancy certificate
and entitled the respondent for refund of amount of Rs.26,25,000/
-, which was given to obtain possession of the flat – Before, National
Commission, appellants denied the receipt of the loan amount of
Rs.26,25,000/- – The said submission was accepted by the National
Commission, however, it held that appellants had agreed to pay a
sum of Rs.25,00,000/- to the respondent-society in the meeting dated
17.12.2003, therefore, the appellants were bound by the admission
so made by them and were liable to that extent – National Commission
also directed appellants to pay compensation of Rs.3,00,000/- for
not obtaining occupancy certificate and directed appellants to pay
Rs.1000/- per day after 60 days of the order and until obtaining
full occupancy certificate – On appeal, held: Direction by the
National Commission as regards payment of sum of Rs.25,00,000/-
   [2019] 9 S.C.R. 606
606
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by the appellants to the respondent requires no interference –
Insofar other directions are concerned, there was no record to hold
the appellants liable for compensation – In other words, there was
no material on record to find if respondent-society or its members
suffered any loss – Therefore, part of order directing appellants to
pay compensation of Rs.3,00,000/- set aside – Also, Municipal
Corporation had issued notices regarding alterations by the
members of the respondent-society and dispute regarding the same
has not settled as the High Court has directed for inspection of the
building and necessary follow up steps – Thus, in the circumstances,
part of the impugned order requiring the appellants to pay Rs.1000/
- per day after 60 days of the order, also set aside – Appellants and
respondent directed to complete all requisites on their part – After
completion of all the requisites by the parties, the appellants directed
to execute the Deed of conveyance in favour of the respondent-
society after obtaining necessary occupancy certificate –
Maharashtra Ownership Flats (Regulation of Promotion,
Construction, Sale, Management and Transfer) Act, 1963 – ss.4
and 11.
Partly allowing the appeal, the Court
HELD : 1. Indisputably, in the application dated
21.03.2013 as moved before the State Commission, the
respondent-society restricted its prayer for money recovery to a
sum of Rs.25,00,000/- with reference to the minutes of meetings
dated 17.12.2003 and 14.12.2003. It is at once clear that the
aforesaid sum of Rs. 25,00,000/- was agreed to be paid by the
appellants in full and final settlement of the claim of the
respondent-society. The appellants having agreed to make such
payment, the National Commission has rightly put them to the
terms of honouring their unequivocal commitment/promise. In
the given set of facts and circumstance, this Court is unable to
accept the contention that a particular part of order of the State
Commission having not been challenged by the respondent-
society, the National Commission could not have granted the
relief otherwise available on the face of record. In an overall view
of the matter, when such a relief emanates from the very
commitment made by the appellants in the meetings aforesaid,
M/S TREATY CONSTRUCTION v. M/S RUBY TOWER CO-OP.
HSG. SOCIETY LTD.
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608
SUPREME COURT REPORTS
[2019] 9 S.

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