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Supreme Court of India 2019-04-02 dismissed

Pioneer Urban Land & Infrastructure Ltd vs Govindan Raghavan

Bench: 2 — Indu Malhotra

In Brief

A builder contracted to deliver a residential flat within 39 months plus a 180-day grace period but delivered the occupancy certificate nearly three years late. The purchaser sought refund and compensation citing deficiency in service. The Supreme Court upheld the refund, holding that inordinate delay amounts to deficiency of service under the Consumer Protection Act. The Court struck down one-sided contractual terms that heavily favoured the builder as unfair trade practices, and awarded interest at the statutory rate (10.7% p.a. under Haryana Real Estate Rules) reflecting the purchaser's actual financial loss, rather than contractual rates, from the date of each payment till refund.

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Consumer Protection Real Estate Deficiency of Service Unfair Contract Terms Breach of Contract Refund and Compensation Statutory Appeal

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