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TULIP PARK CO-OPERATIVE HOUSING SOCIETY LTD . versus M/S. SAIOVERSEAS IMPORT AND EXPORT

Citation: [1999] SUPP. 2 S.C.R. 377 · Decided: 14-09-1999 · Supreme Court of India · Bench: S. SAGHIR AHMAD · Disposal: Dismissed

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Judgment (excerpt)

.... 
TULIP PARK CO-OPERATIVE HOUSING SOCIETY LTD . 
A 
v. 
MIS. SAi OVERSEAS IMPORT AND EXPORT 
SEPTEMBER 14, 1999 
[S. SAGHIR AHMAD AND D.P. WADHWA, JJ.] 
B 
Consumer Protection Act, 1986-Section 2(g), 2(o)-Deficiency in 
service-Housing construction-Appellant alleging short fall in saleable 
area by developer-Claim for refund-Original Claim rejected by National 
Commission-Building constructed as per sanctioned plan-Agreement by C 
Appellant not to raise any dispute regarding saleable area-Whether any 
deficiency in service-Held, No. 
The Appellant filed a complaint before tJte National Consumer Disputes 
Redressal Commission against the Respondent alleging deficiency in service D 
rendered ip the housing construction. The Appellant contended that the 
Respondent failed to provide 34361 sq.ft. of the area as per terms of contract, 
there was a shortfall of 4572.66 sq.ft. in the constructed area and sought for 
a refund of Rs. 28,80, 776/-. As per the agreement between the Appellant and 
Respondent a declaration was made by the Respondent-builder that the building 
is sanctioned as per Bombay Municipal Corporation. The agreement E 
specifically recorded that there will be no dispute on the saleable area by the 
purchasers on any grounds and on any reasons. The building was constructed 
as per the sanctioned plan and each flat had the area as given in the plan 
annexed to the agreement. 
The Appellant-Complainant filed a certificate and an affidavit by its F 
architect mentioning that the saleable area is only 29,788.34 sq.ft. The 
National Commission dismissed the complaint holding that there is no 
deficiency in service. 
Dismissing the Appeal, the Court 
HELD: 1.1. The Orders of the National Commission rejecting the 
prayer of the Complainant is upheld. There is no deficiency in service in 
"housing construction" provided by the respondent, considering the fact that 
G 
the building was constructed as per the sanctioned plan and each flat has the 
area as given in the agreement and the complainant had agreed not to raise H 
377 
378 
SUPREME COURT REPORTS [1999] SUPP. 2 S.C.R. 
A any dispute regarding saleable area, particularly when permitted area of 
construction was to the extent of 34361 sq.ft. (381-D] 
1.2. The report of the architect is bereft of particulars. The National ยท 
Commission is right in rejecting the report. (381-C] 
B 
CIVIL APPELLATE JURISDICTION: Civil Appeal No. 13417 of 
1996. 
From the Judgment and Order dated 21.6.96 of the National Consumer 
Dispute Redressal Commission, New Delhi in O.P. No. 111 of 1994. 
C 
S.S. Javali and Rustom B. Hathikhanawala for the Appellant. 
D 
Joseph Vellapally, R. Narain, Ashok Sagar, Ms. Punita Singh and Amitabh 
Marwah for the Respondent for JBD & Co. 
The Judgment of the Court was delivered by 
D.P. WADHWA, J. Appellant was complainant before the National 
Consumer Disputes Redressal Commission (for short 'National Commission'). 
Proceedings were initiated under the Consumer Protection Act, 1986, under 
which National Commission has been constituted to entertain complaints 
where value of the goods or services and compensation, if any, claimed 
E exceeds Rs. 20 lacs. National Commission is also an Appellate Authority. It 
hears the appeals from orders of the State Commission. 
The complainant, a co-operative housing society, had complained short-
fall in services rendered by the respondent, a builder and developer, which 
had agreed to construct and sell 64 flats to the complainant in a building 
F called Tulip Park. The complainant is not happy with the order dated June 21, 
1996 of the National Commission in one aspect and it is that while under the 
agreement dated May 10, 1990 respondent had agreed to construct the flats 
having total saleable area measuring 34, 361 sq. ft. at the rate of Rs. 630 per 
sq. ft. but the saleable area actually measured comes to 29,788. 34 sq. ft. There 
G being thus short fall of 4,572.66 sq. ft. in the constructed area. Since complainant 
had paid the price for the area of 34, 361 sq. ยทft. and it got only 29,788.34 sq. 
ft. it claimed refund from the respondent of an amount of Rs. 28,80,776 (4, 
572.66 sq. ft. x Rs. 630 per sq. ft.). The National Commission did not agree 
with the complainant. In this appeal by the complainant we are called upon 
to decide on, what the appellant says, if there is any deficiency in services 
H provided by the respondent, the builder. 
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TULIP PARK CO-OP HOUSING SOCIETY LTD. v. SAi OV

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