Insistence On Signing A Document Stating That Possession Is Delivered In "Full Ready Condition" Constitutes Unfair Trade Practice: NCDRC

Insistence On Signing A Document Stating That Possession Is Delivered In "Full Ready Condition" Constitutes Unfair Trade Practice: NCDRC

National Consumer Disputes Redressal Commission (NCDRC), in a case decided on October 29, 2021, allowed the complaint of a buyer contending that insistence on signing off a paper by the builder stating that possession was delivered in "full ready condition", when it was not so, was in derogation with the General Agreement for Construction and would fall under "Unfair Trade Practice". [Suman Kumar Jha v. Mantri Technology, Consumer Case No. 54 of 2018]

Presiding Member, C. Viswanath and Justice Ram Surat Maurya (Member), while allowing the complaint directed to refund the amount already deposited, in addition to a compensation of Rs 1 Lakh.

In 2017, the complainants were called to take possession of the villa.

On reaching the property, they found that it was not in a liveable condition.

Meanwhile, the builder insisted to approve of a document which said that the villa was being delivered in a full ready condition.

Clause-E(2) of Agreement For Construction provided;

"Possession/Handing over Possession in this agreement is limited to the developer obtaining Completion Certificate from the concerned local authority/Project Architect and intimating the purchaser to take possession of the Villa."

The builder nowhere stated that he had obtained a Completion Certificate. Instead, he argued, relying upon Rule 20 of the Tamil Nadu Combined Development and Building Rules, 2019 that "Completion Certificate" was not required itself for the villa.

In the opinion of the NCDRC, Offering possession of incomplete construction and without obtaining Completion Certificate constituted an Unfair Trade Practice on behalf of the builder.