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No compensation for delay in delivery of flats purchased for commercial purpose

A person who is involved in purchasing and selling of flats for profits, he does not fall within the purview of “consumer” and is not entitled for compensation from the construction firm for delay in handing over possession of the flats, observed NCDRC while rendering relief to a construction firm. The Commission was hearing a revision petition filed by Magrath Property Developer challenging the order of Karnataka State Commission vide which the order of District Consumer Forum passed in favour of the Complainant was upheld. Earlier, Complainant had booked six flats in the project floated by Magrath Property Developer and alleging delay in possession of the said flats, he approached District Consumer Forum. District Forum allowed the complaint and Magrath Property Developer was directed to pay Rs 8,86,347 as interest, Rs 1 lakh as compensation and Rs 10,000 as cost to the Complainant. In appeal filed by the Construction Firm, State Commission upheld the order of District Consumer Forum. In its defense, the Firm contended that the Complainant had purchased six apartments in the project and had sold five apartments and generated profit, hence he does not fall within the purview of “consumer”. After hearing both the parties and perusing the relevant documents, NCDRC observed that, “There is nothing on record that complainant booked six flats to accommodate all his family members and Learned State Commission without any basis assumed that flats were booked for his family members. Had it been so, he would not have sold five flats and generated profit. But, it is admitted fact that complainant booked six flats, so, he does not fall within the purview of “consumer.” While holding that once complainant does not fall within the purview of “consumer”, District Forum committed error in allowing the complaint filed by him, NCDRC set aside the orders of State Commission and District Forum, [Magrath Property Developer v. A.S.Veeranna, 2015 SCC OnLine NCDRC 16, decided on June 26, 2015]

 Article referred: http://blog.scconline.com/post/2015/07/10/no-compensation-for-delay-in-delivery-of-flats-purchased-for-commercial-purpose.aspx

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