Delhi HC Orders NBCC To Compensate Homebuyer For Mental Agony Over Unfulfilled Property Deal

The plea argued that despite paying the entire sales cost of the flat, the possession was never received. NBCC neither provided an alternative flat nor refunded the money with appropriate interest.

A Bench of Justice Subramonium Prasad presiding over the case emphasized that the homebuyer suffered immense mental anguish as a result of NBCC's failure to refund his money along with interest, despite the discovery of structural defects in the building project he had invested in.

Advocate Raghav Vij appeared for the Petitioners and Senior Advocate Arvind Minocha appeared for the Respondents.

The Court remarked, “Purchasing a house is one of the most significant investments an individual or family make in their lifetime. It often involves years of savings, meticulous planning and emotional investment. When builders of such homes fail to deliver what was promised, they shatter the trust and financial security of homebuyers and also put homebuyers in a situation where they may face immense stress, anxiety, uncertainty and ultimately be forced to navigate legal channels for seeking recourse. The emotional toll of living in limbo, uncertain about the future of their investment and the stability of their living arrangements cannot be understated. Compensating wronged homebuyers is not just a matter of rectifying past injustices but also about deterring future misconduct.”

Highlighting that the total payment for the flat was made in 2017 and that structural defects were present in the NBCC-constructed building, the court asserted that NBCC cannot evade paying interest on the money paid by the homebuyer. It was emphasized that the act of denying interest should be dealt with severely.

Consequently, the Court directed NBCC, a Central government-owned public sector undertaking, to refund the entire amount of ₹76 lakh paid by the homebuyer, alongside interest at a rate of 12% from January 30, 2021, the date when the possession certificate was issued.

Cause Title: Sanjay Raghunath Piplani & Anr. v National Buildings Construction Corporation & Anr., [2024:DHC:3738]

Appearance:

Petitioners: Advocates Raghav Vij, GS Rana, and Saurabh Kaushal

Respondents: Senior Advocate Arvind Minocha, along with Advocates Ray Vikram Nath, Akshat Chaudhary, Harshvardhan Jha, and Ravi Kiran Sriramoju, appeared for NBCC. Advocates Chiranjiv Kumar, Mukesh Sachdeva, and Neelima represented the Union of India.