Ravinder Singh Chana v. Khanna Properties and Infrastructures Pvt. Ltd.

Case Details & Bench

Court: High Court
Hon'ble Judges: S. Abdul Nazeer
J.K. Maheshwari
Judgment Date: 2022-08-24
Court Decision / Holding: The National Commission’s order was set aside; the State Commission’s order dated 15.10.2020 was restored. The respondent is directed to pay/refund the amount in terms of the State Commission’s order within two months from today if not already paid/refunded, including the Rs.21,18,000 and applicable interest and costs as specified in the State Commission’s order.
Final Disposition: Appeal disposed of.

Parties to the Case

Appellants / Petitioners

Ravinder Singh Chana

Respondents

Khanna Properties and Infrastructures Pvt. Ltd.

Legal Representation & Advocates

Counsels for Petitioners

• Akshat Shrivastava
• Satvic Mathur

Counsels for Respondents

• Yashish Chandra
• Yash Agrawal
• Devesh Pratap Singh

Case Synopsis & Summary

This Supreme Court Civil Appeal concerns a consumer dispute arising from a housing project where the builder failed to complete construction after receiving payment within the fixed time. The Madhya Pradesh State Consumer Disputes Redressal Commission (State Commission) on 15 October 2020 ordered the respondent to refund a total of Rs. 21,18,000 to the appellant, along with simple interest at 9% per annum from the date of the last deposit (19.01.2015) till realization, and Rs. 5,000 as litigation costs, to be paid within two months. The National Consumer Disputes Redressal Commission (National Commission) issued a contrary order directing a refund of Rs.16,18,000 with interest within two months from its order. The appellant challenged the National Commission’s partial reversal, arguing that the State Commission’s full relief should stand and that the National Commission exceeded its remit by reducing the amount payable. After hearing both sides and examining the record, the Court held that the National Commission erred in partially reversing the State Commission’s order. The National Commission’s order was set aside, and the State Commission’s order dated 15.10.2020 was restored. The respondent was directed to comply with the State Commission’s directions to refund the amount in terms of that order within two months, if not already paid. The appeal was disposed of accordingly.

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellant contended that the State Commission’s complete relief directing the refund of Rs.21,18,000 with interest and costs should be upheld, and that the National Commission’s partial reversal diminished the relief mandated by the consumer protection statutes. The appellant urged adherence to the State Commission’s unequivocal order and restoration of full relief without dilution.

Contentions of Respondents

The respondents argued in favor of the National Commission’s partial reversal, seeking to limit the refund amount and sustain the adjusted relief stated therein, asserting that recalibrated relief aligns with the project status and related considerations.

Extracted Judgment Text

Exact text extracted from official judgment records.

136 SUPREME COURT REPORTS[2022] 7 S.C.R. 136 [2022] 7 S.C.R. A ## RAVINDER SINGH CHANA v. KHANNA PROPERTIES AND INFRASTRUCTURES PVT. LTD. (Civil Appeal No(C). 5793 of 2022) B AUGUST 24, 2022 ## **[S. ABDUL NAZEER AND J.K. MAHESHWARI, JJ.]** _Consumer Protection – Construction of flat not completed even after receipt of amount within the fixed time period – State Commission directed the respondent to refund the total amount of_ C _Rs.21.18 Lakhs to the appellant with interest – However, National Commission directed the refund of Rs.16,18,000/- with interest – On appeal, held: National Commission erred in partially reversing the order of State Commission – Order of National Commission set aside – Respondent to pay/refund the amount in terms of the order_ D _of the State Commission within two months, if already not paid/ refunded._ CIVIL APPELLATE JURISDICTION: Civil Appeal No. 5793 of 2022. - From the Judgment and Order dated 17.02.2022 of the National - E Consumer Disputes Redressal Commission, New Delhi in First Appeal No.387 of 2021. Akshat Shrivastava, Satvic Mathur, Advs. for the Appellant. - Yashish Chandra, Yash Agrawal, Devesh Pratap Singh, Advs. for - F the Respondent. The following Order of the Court was passed: ## **O R D E R** ## 1. Leave granted. G 2. By an order dated 15.10.2020, M.P. State Consumer Dispute Redressal Commission, Bhopal, (M.P.) (for short ’the State Commission’) directed the respondent herein to refund a total sum of Rs.21,18,000/(Rupees twenty-one lakhs eighteen thousand only) to the appellant with interest thereon within a period of two months. The operative portion of the order of the State Commission is as under: H 136 ## RAVINDER SINGH CHANA v. KHANNA PROPERTIES AND 137 INFRASTRUCTURES PVT. LTD. “It is proved in the light of above investigation/observation and justice citations that even after receipt of an amount of Rs.21.18 Lakhs, within a fixed time period, which is generally presumed approximately two years, the construction of the flat has not been completed. Hence the complainant is entitled to receive the deposit amount back along with interest. Therefore this complaint case is allowed/accepted and respondent is directed to pay an amount of Rs.21.18 Lakh (Rs. Twenty One Lakh Eighteen Thousand only) within a period of two months and also to pay simple interest of 9% per annum upon the above said amount from the dated 19.01.2015 the last depositing installment till realization date. The respondent also to pay an amount of Rs.5,000/- (Rs. Five Thousand only) as litigation expenses to the complainant.” A B C 3. However, the National Consumer Disputes Redressal Commission, New Delhi (for short ‘the National Commission’) has passed the impugned order dated 15.10.2020 directing the refund of Rs.16,18,000/- (Rupees sixteen lakhs eighteen thousand only) with interest D @ 9% per annum within a period of two months from the date of the said order. 4. Having heard learned counsel for the parties and on perusal of the materials placed on record, we are of the view that the National Commission was in error in partially reversing the order of the State Commission. Therefore, the order of the National Commission impugned herein is hereby set aside and the order of the State Commission dated 15.10.2020 is hereby restored. E 5. The respondent is directed to pay/refund the amount in terms of the order of the State Commission dated 15.10.2020 within a period F of two months from today, if already not paid/refunded. 6. The civil appeal is disposed of accordingly. Divya Pandey (Assisted by : Roopanshi Virang, LCRA) G H Appeal disposed of.