NCDRC Awarded Lesser Interest Than Agreed Upon In Agreement: Supreme Court Grants Relief To Homebuyers

The Court was hearing an appeal that challenged the order of the National Consumer Disputes Redressal Commission in Consumer Case which directed the developers to refund the entire sum deposited by the complainants with annual interest less than what was mentioned in the Agreement.

The bench of Justice B.R. Gavai and Justice Sandeep Mehta observed, “…we find that, insofar as award of interest at the rate of 9% per annum is concerned, the learned Commission was not justified in the facts of the case to award a lesser interest than even the one agreed upon in the Agreement.”

Advocate Sanjay Jain appeared for the complainants-appellants and Senior Advocate Jayant Muth Raj appeared for the respondent-developer.

Brief Facts-

M/s Parsvnath Developers Limited launched the "Parsvnath Paramount" housing project. The complainants booked a 3BHK flat, paying nearly 95% of the total price. The developer delayed possession beyond the agreed timeline. The complainants-appellants visited the construction site and found that no construction work was ongoing. The complainants filed a consumer case for a refund and compensation, which was partially allowed by the Commission. Aggrieved by the decision of the Commission they filed the present Appeal.

The Court said that the Commission has rightly directed the respondent-developer to refund the entire amount deposited by the complainants-appellants.

Accordingly, the Court upheld the direction made by the Commission for a refund of the entire amount deposited by the complainants-appellants.

However, the Court modified the direction with regard to interest to the extent that it shall be paid at the rate of 12% per annum from the date of respective deposit till the date of refund.

Finally, the Court partly allowed the Appeal.