Case Law Details
DLF Home Developers Ltd. Vs Capital Greens Flat Buyers Association Etc. (Supreme Court of India)
Supreme Court has upheld the findings of the NCDRC to hold that the “delay in the approval of building plans is a normal incident of a construction project. A developer in the position of the appellant would be conscious of these delays and cannot set this up as a defence to a claim for compensation where a delay has been occasioned beyond the contractually agreed period for handing over possession”.
FULL TEXT OF THE SUPREME COURT JUDGEMENT
1 These appeals arise from a judgment of the National Consumer Disputes Redressal Commission dated 3 January 2020 in a batch of consumer complaints. The complaints were instituted inter alia by an association representing fat purchasers, called the Capital Greens Flat Buyers Association and by individual fat purchasers against the appellant. The gist of the grievance was that there was a substantial delay on the part of the developer in handing over possession of the apartments which were contracted to be sold. The complainants also specifcally challenged he recovery of parking and club charges by the developer. A claim for compensation for delay in handing over possession of the fats was made.
2 The appellants in their defence to the complaints inter alia contended that as a result of force majeure conditions, they were prevented from achieving timely completion of their contractual obligations. The circumstances which according to the appellants triggered the force majeure clause of the agreements with fat buyers were: (i) delay in the approval of building plans; and (ii) issuance of stop work orders as a result of fatal accidents during the course of construction. The NCDRC has, after a detailed evaluation of the facts, rejected the force majeure defence.
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