Skip to main content

Developer can't escape liability by outsourcing

A developer cannot escape his contractual obligation towards the buyer in a developed property by claiming that he had outsourced the development work to another builder, the Pune district consumer disputes redressal forum has held.

In a recent order, the forum, headed by president V P Utpat, ordered a construction firm in Mundhwa to deliver the possession of a 180 sq ft shopping block to the complainant, Meena Harish Bhujbal, with whom he had a registered sale agreement.

"As an alternative, if the developer expresses his inability to deliver possession of the block then he should pay the prevailing market price," the forum, which also comprised Mohan Patankar and Kshitija Kulkarni as members, ordered.

The three-member bench further directed the firm, Sai Constructions, to pay Rs 25,000 damages to Bhujbal on account of deficiency in service by not delivering possession of the shopping block as promised and causing physical and mental agony to the complainant. The damages are to be paid within six weeks from July 7 when the order was passed.

On January 26, 1996, the construction firm had entered into an agreement with Kashinath alias Shivaji Tukaram Gaikwad, owner of a land at city survey numbers 1172 to 1177 in Hadapsar, for development of a residential-cum-commercial property. Gaikwad had executed a power of attorney in favour of the developer.

For the residential and commercial blocks, the construction firm had entered into individual agreements with the buyers, including Bhujbal, who had decided to purchase a 180 sq ft shopping block for Rs 2.16 lakh.

An agreement was signed between Bhujbal and the construction firm on December 29, 2001 and the same was also registered with the sub-registrar's office in Haveli. Bhubal paid Rs 50,000 to the firm through a cheque and the latter had agreed to deliver possession by December 31, 2002. However, after the block was ready, the firm's partner Anil Tukaram Zhodge started giving evasive replies when Bhujbal asked for delivery of the block.

Bhujbal had sent notices to the firm but, the latter responded with false replies and on November 4, 2004, informed her that the development work of the property was given to another builder, Sudam Associates. Since year 2003 till February 2014 when Bhujbal eventually moved a consumer complaint through her lawyer Mahendra K Tilekar, the construction firm kept ignoring her notices. Bhujbal demanded Rs 9.90 lakh compensation and cost of litigation.

Zhodge, the respondent, did not turn up despite notices by the forum and the latter proceeded ex-parte against him. The forum observed that by not delivering possession of the block, the construction firm was liable for deficiency in service.

It ordered that Bhujbal should deposit with the forum the Rs 1.66 lakh remainder of the amount payable towards the block and hand possession of the block over or pay the prevailing market price to Bhujbal.

Article referred: http://timesofindia.indiatimes.com/city/pune/Developer-cant-escape-liability-by-outsourcing/articleshow/48106090.cms

Comments

Most viewed this month

Court approached in the early stages of arbitration will prevail in all other subsequent proceedings

In National Highway Authority of India v. Hindustan Steelworks Construction Limited, the Hon'ble Delhi High Court opined that once the parties have approached a certain court for relief under Act at earlier stages of disputes then it is same court that, parties must return to for all other subsequent proceedings. Language of Section 42 of Act is categorical and brooks no exception. In fact, the language used has the effect of jurisdiction of all courts since it states that once an application has been made in Part I of the Act then ―that Court alone shall have jurisdiction over arbitral proceedings and all subsequent applications arising out of that agreement and arbitral proceedings shall be made in that Court and in no other Court. Court holds that NHAI in present case cannot take advantage of Section 14 of the Limitation Act, 1963 for explaining inordinate delay in filing present petition under Section 34 of this Act in this Court.

The recovery of vehicles by the financier not an offence - SC

Special Leave Petition (Crl.) No. 8907  of 2009 Anup Sarmah (Petitioner) Vs Bhola Nath Sharma & Ors.(Respondents) The petitioner submitted that  respondents-financer had forcibly taken away the vehicle financed by them and  illegally deprived the petitioner from its lawful possession  and  thus,  committed  a crime. The complaint filed by the petitioner had been  entertained  by  the Judicial Magistrate (Ist Class), Gauhati (Assam) in Complaint Case  No.  608 of 2009, even directing the interim custody of the vehicle (Maruti  Zen)  be given to the petitioner vide order dated  17.3.2009.  The respondent on approaching the Guwahati High  Court against this order, the hon'ble court squashed the criminal  proceedings  pending   before  the  learned Magistrate. After hearing both sides, the Hon'ble Supreme Court decided on 30th...

No Rebate For Stamp Duty Paid In Another State - Bombay HC

A three judge bench of the Hon'ble Bombay High Court (Bombay HC) in a recent judgment in the matter of Chief Controlling Revenue Authority, Maharashtra State, Pune and Superintendent of Stamp (Headquarters), Mumbai v Reliance Industries Limited, Mumbai and Reliance Petroleum Limited, Gujarat1 has held that orders in case of a scheme of arrangement under Section 391 to 394 of the Companies Act, 1956 (Act) involving different High Courts in multiple states, are separate instruments in themselves. Accordingly, stamp duty would be payable on all the orders (and consequently, all the states) without the benefit of remission, rebate or set-off.