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Consumer Protection and RERA Acts are concurrent remedies operating independently and without primacy

Citation         : Experion Developers Pvt. Ltd. vs Sushma Ashok Shiroor, Civil Appeal No. 6044 Of 2019 With Civil Appeal No. 7149 Of 2019

Date of Judgment/Order         : April 07, 2022

Court/Tribunal : Supreme Court Of India

Corum : Uday Umesh Lalit; J, S. Ravindra Bhat; J, Pamidighantam Sri Narasimha; J.

Background

Appeal was filed Section 23 of the Consumer Protection Act, 19861, arise out of the judgment dated 19.06.2019 passed by the National Consumer Disputes Redressal Commission. The Commission directed the Appellant-Developer to refund an amount of Rs. 2,06,41,379 with interest @ 9% p.a. to the Respondent-Consumer for its failure to deliver possession of the apartment within the time stipulated as per the Apartment Buyers Agreement.

One of the questions raised by the Appellant was whether the Commission has the power under the Consumer Protection Act, 1986 to direct refund of the amount deposited by the Consumer with interest?
Consumer, having elected to proceed under the Act, the provisions of the RERA Act will have no application.

Judgment

The Supreme Court referring to judgments in Imperia Structures Ltd v. Anil Patni (2020) 10 SCC 783,  IREO Grace Realtech (P) Ltd. V. Abhishek Khanna (2021) 3 SCC 241] and Pioneer Urban Land Infrastructure Ltd. & Anr. v. Union of India & Ors. (2019) 8 SCC 416, made the following observations :-

  1. It is crystal clear that the Consumer Protection Act and the RERA Act neither exclude nor contradict each other. In fact, this Court has held that they are concurrent remedies operating independently and without primacy. 
  2. The power to direct refund of the amount and to compensate a consumer for the deficiency in not delivering the apartment as per the terms of Agreement is within the jurisdiction of the Consumer Courts.
  3. A consumer invoking the jurisdiction of the Commission can seek such reliefs as he/she considers appropriate. A consumer can pray for refund of the money with interest and compensation. The consumer could also ask for possession of the apartment with compensation. The consumer can also make a prayer for both in the alternative. If a consumer prays for refund of the amount, without an alternative prayer, the Commission will recognize such a right and grant it, of course subject to the merits of the case. If a consumer seeks alternative reliefs, the Commission will consider the matter in the facts and circumstances of the case and will pass appropriate orders as justice demands.

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