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Supreme Court of India 2017-10-12 allowed

Kusum Agarwal & Anr vs Harsha Associates Pvt. Ltd

Bench: 3 — Deepak Gupta

In Brief

A builder sold a commercial shop to husband and wife for Rs 4,80,000 with an agreement for installment payment. After they paid Rs 1,95,000 and were ready to settle the balance, the builder refused to hand over possession, claiming non-payment. The State Commission ordered refund of paid amount. However, the National Commission wrongly dismissed their revision petition, claiming commercial space is outside consumer law. The Supreme Court set aside this dismissal, finding the builder had already sold the same shop to another customer before even offering it to the appellants—a clear deficiency in service. The Court directed refund of Rs 2,05,000 plus Rs 50,000 damages (total Rs 2,55,000) with 18% annual interest from December 2004."

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Consumer Protection Deficiency in Service Real Estate/Commercial Space Breach of Contract

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