Judgment · Supreme Court

NBCC (INDIA) LIMITED v. SHRI RAM TRIVEDI 281 the dwelling unit within two and a half years from the date of the letter of allotment. The expression ‘endeavour’ meant that the appellant would make an earnest effort to hand over possession by that date. Even if the expression does not mean an absolute commitment to hand over possession on or before a specified date, this expression has to be read in the context of the entirety of the clause. To construe the expression as leaving the date for handing over possession indefinite and at the absolute discretion of the developer would leave the purchaser at the mercy of the builder. Clause 20 must be construed to require the builder to make all reasonable efforts to comply with the duty to hand over possession by the stipulated date. The burden would lie on the developer to explain the steps taken to comply with the contractual stipulation. Clause 20 envisages that, save and except for delay on account of force majeure, the appellant would pay compensation at the rate of Rs 2 per sq ft of the super area of the dwelling unit per month for the period of delay beyond one year from the stipulated date. It stipulates that compensation would be payable after four years (plus a valid extension due to force majeure) from the date of allotment. The above condition would indicate that beyond a period of one year, from the expiry of two and a half years, which was envisaged under Clause 20, the appellant agreed to pay compensation to the flat buyer. The latter stipulation of four years is incongruous, because previously, a period of one year beyond the stipulated period of 2.5 years is fixed, beyond which compensation becomes payable. This indicates that three and a half years was by all accounts the period for handing over possession beyond which the purchaser was entitled to compensation. [Para 7][287-A-F]

#2. The NCDRC was justified in taking the view that the condition in the allotment of payment of compensation at the rate of Rs 2 per sq ft is one-sided and constitutes an unfair trade practice. The letter of allotment is in a standard form. The purchaser has no option but to sign on the dotted line. On the other hand, under Clause 16, if the buyer were to delay in the payment of any instalment, a liability to pay simple interest at the rate of 12% per annum is attracted. Clause 20, in other words, is A B C D E F G H 282 SUPREME COURT REPORTS [2021] 2 S.C.R. not even-handed. While, on the one hand, it contemplates only compensation at the rate of Rs 2 per sq ft in the event that there is a delay on the part of the appellant, the buyer is required to pay a substantially higher rate of interest (12%) for any delayed payment on his part. [Para 8][290-B-D]