Padmini Infrastructure Private Limited Vs Royal Garden Residents’ Welfare Association
Date:28th September,2021
Forum-Supreme Court

Sub-What is the liability of the builder in case the facilities which are promised like swimming pool, fire fighting equipment, water softening plant and health club etc are not given?

The Apex Court in this case was dealing with appeal of the builder against an order passed by the National Consumer Forum which had rejected the plea of the builder on point of limitation and awarded costs regarding the various deficiencies while handing over the apartment to the apartment buyers. The Apex court while holding the rejection of limitation ground to be right in view of complaint having been filed within 2 years from the cause of action as per Section 24A(1) of the Consumer Protection Act, 1986, noted that the building was handed over in the year 2003 and thus asking builder to now do all these facilities would not be in the fitness of things and as such the court allowed the Association to withdraw the Fixed deposit of Rs 60 lacs with interest which was directed to be deposited with the Supreme Court registry in the earlier round of litigation when the matter travelled upto the Supreme Court and to be utilised for these facilities.

This judgement is eye opener for the Real Estate developers and also the fact that the consumer forum are the right forum for redressal of grievances like these.

Ramesh Patodia
28-09-2021