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MARVEL OMEGA BUILDERS PVT. LTD. AND ANR.V. SHRIHARI GOKHALE AND ANR. versus SHRIHARI GOKHALE AND ANR

Citation: [2019] 10 S.C.R. 375 · Decided: 30-07-2019 · Supreme Court of India · Bench: UDAY UMESH LALIT · Disposal: Dismissed

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Judgment (excerpt)

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MARVEL OMEGA BUILDERS  PVT. LTD. AND ANR.
v.
SHRIHARI GOKHALE AND ANR.
 (Civil  Appeal Nos.3207-3208 of 2019)
 JULY 30, 2019
 [UDAY UMESH LALIT AND VINEET SARAN, JJ.]
Consumer Protection Act, 1986 – s.23 – Respondents booked
a residential villa viz., Emerald-07 in a project named β€˜Marvel Selva
Ridge Estate’ to be developed by the Appellants – Agreement dated.
22.03.2013 entered between the parties – Total consideration for
the villa was to be Rs.8.31 crores – Respondents paid Rs.8.14 crores
by November, 2013 – Though the appellants had agreed to deliver
possession on or before 31.12.2014, neither the villa was complete
by the due date nor was any refund made by the appellants –
Respondents filed complaint before the Commission – Complaint
allowed by the Commission inter alia directing refund of the entire
principal amount of Rs.8.14 crores to the Respondents with
compensation in the form of simple interest @ 10% p.a.– Appellants
filed application seeking extension of time to comply with the
judgment – Rejected – On appeal, held: As against the total
consideration of Rs.8.31 crores, the Respondents had paid Rs.8.14
crores by November, 2013 – Though the Appellants had undertaken
to complete the villa by 31.12.2014, they failed to discharge the
obligation – As late as on 28.05.2014, the Revised Construction
Schedule had shown the date of delivery of possession to be October,
2014 – Thus, there was total failure on part of the Appellants and
they were deficient in rendering service in terms of the obligations
undertaken – Even assuming that the villa is now ready for
occupation (as asserted by the Appellants), the delay of almost five
years is a crucial factor and the bargain cannot now be imposed
upon the Respondents – Respondents justified in seeking refund of
the amounts deposited with reasonable interest – Findings rendered
by the Commission neither incorrect nor unreasonable on any count
– Villa in question shall not be sold nor any third party rights can
be created by the Appellants in respect of said villa till the decree in
favour of the Respondents is completely satisfied – So long as the
[2019]  10 S.C.R. 375
   375
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SUPREME COURT REPORTS
[2019] 10  S.C.R.
decree  remains to be satisfied, said villa shall be under attachment,
subject to such orders as may be required to be passed in connection
with the execution of the order passed by the Commission.
Dismissing the appeals, the Court
HELD: 1.1 As against the total consideration of Rs.8.31
crores, the Respondents had paid Rs.8.14 crores by November,
2013. Though the Appellants had undertaken to  complete the
villa by 31.12.2014, they failed to discharge the obligation. As
late as on 28.05.2014, the Revised Construction Schedule had
shown the date of delivery of possession to be October, 2014.
There was, thus, total failure on part of the Appellants and they
were deficient in rendering service in terms of the obligations
that they had undertaken.  Even assuming that the villa is now
ready for occupation (as asserted by the Appellants), the delay of
almost five years is a crucial factor and the bargain cannot now
be imposed upon the Respondents. The Respondents were,
therefore, justified in seeking refund of the amounts that they
had deposited with reasonable interest on said deposited amount.
The findings rendered by the Commission cannot therefore be
said to be incorrect or unreasonable on any count. [Para 10]
[379-D-F]
1.2 The residential villa admeasuring 648.46 square metres
bearing No. Emerald-07 in the complex known as β€˜Marvel Selva
Ridge Estate’ namely the villa in question shall not be sold nor
any third party rights can be created by the Appellants in respect
of said villa till the decree in favour of the Respondents is
completely satisfied and so long as the decree remains to be
satisfied, said villa shall be under attachment and would be subject
to such orders as may be required to be passed in connection
with the execution of the order dated 31.05.2018 passed by the
Commission in Consumer Case No.2010 of 2016. [Para 11] [379-
G-H; 380-A]
CIVIL APPELLATE JURISDICTION: Civil Appeal Nos. 3207-
3208 of 2019
From the Judgment and Order dated 05.09.2018 of the National
Consumer Dispute Redressal Commission, New Delhi in Miscellaneous
Application No. 578 of 2018
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R. P. Bhatt, Sr. Adv., Javed Shaikh, R. C. Sharma, Rahul Kr.
Singh, R. P. Chhibber,  Ms. Bharti Tyagi, Advs. for the Appellants.
Saurabh Jai

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