In Brief
Pioneer Urban Land & Infrastructure Ltd challenged an order by the National Consumer Disputes Redressal Commission requiring it to refund the full amount paid by a flat purchaser with statutory interest. The purchaser had paid Rs. 4,48,43,026 for a flat but the builder failed to obtain an occupancy certificate and hand over possession within the contractual timeframe of 39 months plus 6 months grace. The Supreme Court held that such inordinate delay (over 2 years beyond the contractual deadline) constitutes deficiency of service. The one-sided contractual terms preventing the purchaser from claiming refund were found unfair and unenforceable due to unequal bargaining power. The Court upheld the refund order with statutory interest at 10.7% per annum, dismissing the builder's appeal.
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