The National Consumer Disputes Redressal Commission (NCDRC), led by Justice A.P. Sahi (President), held DLF Homes Panchkula Pvt. Ltd. accountable for deficiency in service and unfair trade practices due to their failure to execute the Plot Buyer’s Agreement and their subsequent cancellation of the booking while imposing excessive forfeiture charges.
Case Summary
The Complainant booked a plot in DLF Valley Panchkula from DLF Homes, paying an initial amount of ₹12,00,000 out of a total plot cost of ₹1,78,10,452.51, with payments scheduled over two years. On March 31, 2012, the Complainant received a receipt for the booking amount and a confirmation letter for the plot allocation. Payments were to be made in 11 installments, with the last payment made on August 23, 2013. However, DLF Homes did not provide a Plot Buyer’s Agreement, which was supposed to be executed as per the application form. The plot booking was canceled on November 18, 2014, citing the absence of the agreement. Despite multiple reminders from the Complainant for a refund of ₹61,64,228 with 18% interest, DLF Homes did not comply.
In response, DLF Homes claimed the Complainant failed to adhere to the payment plan, having only made the booking payment and three installments, which led to the cancellation and application of the forfeiture clause.
NCDRC Observations
The NCDRC referenced the case of State Bank of India vs B.S. Agriculture Industries, establishing that the complaint was not barred by limitation due to the continuing nature of the cause of action.
The Commission found that DLF Homes did not execute the Plot Buyer’s Agreement, making the forfeiture of the booking amount and the imposition of interest unfair. The payment plan provided with the booking letter was not signed by DLF Homes, further supporting the claim of service deficiency and unfair trade practices. The terms in the application form indicated that the final agreement depended on a Plot Buyer’s Agreement, which was never provided.
The NCDRC also noted that the absence of a signed agreement meant that the Complainant could rightfully halt further payments in light of significant delays. Without a signed agreement, DLF Homes could not compel additional payments. Forfeiture of the earnest money and the interest imposed were deemed unreasonable. The NCDRC concluded that forfeiture should not exceed 10% of the total consideration.
Thus, the NCDRC ordered DLF Homes to refund ₹10,00,000 of the booking amount with 6% interest, allowing only a 10% forfeiture of the total amount.
Posted and reproduced in Public Interest by
Adv. Sulaiman Bhimani Legal Consultant
Expert in RERA & Consumer Matters, Co-operative Scty Matters,
Deem Conveyance, Family Matters, and Property Disputes.
Human and Civil Rights Campaigner
President Citizens Justice Forum https://citizensjusticeforum.in
YouTube Channel https://tinyurl.com/CitizensJusticeForum
NEW CHANNEL FOR STOCK MARKET https://tinyurl.com/GreenWallet
WhatsApp +91 99877 43676