In Brief
A housing board appealed against a National Consumer Commission order that directed it and a property developer to jointly refund a flat buyer's deposit of Rs. 1,03,31,250 with interest and pay Rs. 2 lakhs for mental harassment and litigation costs in a 70:30 ratio. The board argued the developer alone was liable under the contract's compensation clause. The Court held that the compensation clause applied only to specific non-performance; since both parties breached the agreement, liability was shared equally. The appeal was dismissed; the board was ordered to pay its 30% share of the awarded Rs. 2 lakhs plus additional interest within eight weeks.
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