Judgment · Supreme Court

2.2 However, the cases of the eleven purchasers who entered into specific settlement deeds with the developers have to be segregated. These eleven flat purchasers having entered into specific deeds of settlement, it would be only appropriate and proper if they are held down to the terms of the bargain. Similarly, the three appellants who transferred their title, right and interest in the apartments would not be entitled to the benefit of the present order since they have sold their interest in the apartments to third parties. Even if the three appellants who had transferred their interest in the apartments had continued to agitate on the issue of delay of possession, the Court is not inclined to accept the submission that the subsequent transferees can step into the shoes of the original buyer for the purpose of benefiting from this order. The subsequent transferees in spite of being aware of the delay in delivery of possession the flats, had purchased the interest in the apartments from the original buyers. Further, it cannot be said that the subsequent transferees suffered any agony and harassment comparable to that of the first A B C D E F G H 142 SUPREME COURT REPORTS [2020] 9 S.C.R. A B C D E F G H buyers, as a result of the delay in the delivery of possession in order to be entitled to compensation. [Paras 37, 38][171-G-H; 172-B, F-G] HUDA v. Raje Ram (2008) 17 SCC 407 : [2008] 16 SCR 601 – relied on.

#3. Amenities Club house There has been no breach by the developer of the obligation to provide a constructed facility of a club for the RWA. [Para 40][174-C] Other amenities A deficiency under Section 2(1)(g) means a fault, imperfection, shortcoming or inadequacy in the quality, nature and manner of performance. This may be required to be maintained under law or may be undertaken to be performed in pursuance of a contract or otherwise in relation to any service. The builder invited prospective flat purchasers to invest in the project of Westend Heights on the basis of a clear representation that the surrounding area of New Town situated on 80 acres was being developed to provide a wide range of amenities including a shopping centre, health care facilities and an early learning school. The developer has failed to provide these amenities. This is a case involving an experienced developer who knew the nature of the representation which was being held out to the flat purchasers. Developers sell dreams to home buyers. Implicit in their representations is that the facilities which will be developed by the developer will provide convenience of living and a certain lifestyle based on the existence of those amenities. Having sold the flats, the developer may find it economically unviable to provide the amenities. The flat purchasers cannot be left in the lurch or, as in the present case, be told that the absence of facilities which were to be provided by the developer is compensated by other amenities which are available in the area. The developer must be held accountable to its representation. True, in a situation such as the present it may be difficult for the court to quantify the exact nature of the compensation that should be provided to the flat buyers. The general appreciation in land values results in an ARIFUR RAHMAN KHAN AND ALEYA SULTANA v. DLF SOUTHERN HOMES PVT. LTD. 143 increase in the value of the investment made by the buyers. Difficulties in determining the measure of compensation cannot however dilute the liability to pay. A developer who has breached a clear representation which has been made to the buyers of the amenities which will be provided to them should be held accountable to the process of law. [Paras 41-43][175-E-G; 176- E-H; 177-A-B]

#4. Tax There is no deficiency of service in regard to the demand of interest payable on the tax which was required to be deposited with the revenue. [Para 47][180-B] Larsen and Toubro Limited v. State of Karnataka (2014) 1 SCC 708 : [2013] 17 SCR 678- – referred to.

#5. Electricity The NCDR Chas up held the collection of the charges towards electricity based on the terms of the ABA. There is no infirmity in the finding of the NCDRC, which is based on the provisions contained in clause 23(b) of the ABA. The charges recovered are not contrary to what was specified in the contract between the parties. [Para 51][182-E]

#6. Parking The demand of parking charges is in terms of the ABA and hence it is not possible to accede to the submission that there was a deficiency of service under this head. [Para 54][183-C]

#7. The dismissal of the complaint by the NCDRC was erroneous. The flat buyers are entitled to compensation for delayed handing over of possession and for the failure of the developer to fulfil the representations made to flat buyers in regard to the provision of amenities. The impugned judgment and order of the NCDRC dismissing the consumer complaint is set aside. Directions issued. [Para 55][183-D-E] Nahalchand Laloochand Private Limited v. Panchali Cooperative Housing Society Limited (2010) 9 SCC 536 : [2010] 10 SCR 804 – distinguished. A B C D E F G H 144 SUPREME COURT REPORTS [2020] 9 S.C.R. A B C