Ireo Grace Realtech Private Limited Vs Abhishek Khanna & Ors

Court: Supreme Court of India
Head Notes:

*Issue-Whether one sided terms and conditions in the agreement for sale of flat amounts to unfair trade practice?*
*Forum-Supreme court of India*
*Date-11th January 2021*
*Citation-Ireo Grace Realtech Private limited Vs Abhishek Khanna & Ors *

The apex court in the above matter which reached apex court from the order passed by the National Consumer Dispute Resolution Council(NCDRC) was dealing with multiple issue regarding delay in allotment of flat at Gurgaon in a project named “*The Corridors”. * The dispute interalia was related to the one sided terms and conditions in the agreement, delay in allotment of flats and consequent refund of money with interest and other issues. On these facts the apex court held that the incorporation of one-sided and unreasonable clauses in the Apartment Buyer‘s Agreement constitutes an unfair trade practice under Section 2(1)(r) of the Consumer Protection Act. and held that the Developer cannot compel the apartment buyers to be bound by the one-sided contractual terms contained in the Apartment Buyer‘s Agreement. Among other issues the court decided that a disgruntled flat buyer had option under the RERA as well as consumer protection act. An allottee may elect or opt for one out of the remedies provided by law for redressal of its injury or grievance. An election of remedies arises when two concurrent remedies are available, and the aggrieved party chooses to exercise one, in which event he loses the right to simultaneously exercise the other for the same cause of action. The Court relied on its own recent judgement in the case of imperia Structures Limited Vs Amit Patni & Ors (2020) 10 SCC 783 (SC) where it was held that remedies under the Consumer Protection Act were in addition to the remedies available under special statutes. The absence of a bar under Section 79 of the RERA Act to the initiation of proceedings before a fora which is not a civil court, read with Section 88 of the RERA Act makes the position clear. Section 18 of the RERA Act specifies that the remedies are ―without prejudice to any other remedy available. Thus, finally the court ordered refund of money with appropriate interest.

*This is another judgement where the rights of home buyers have been upheld.*

Ramesh Patodia
12-01-2021

Law:
Section(s): Consumer Protection Act 1986 and Haryana RERA Act
Counsel(s): Counsels
Dowload Pdf File Click here to download the file in pdf format
Uploaded By CA Ramesh Patodia
Date of upload: January 12, 2021

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