Consumer courts can claim Refund & Compensation to buyers for not delivering flat: SC

The Supreme Court (SC) has ruled that consumer courts have the authority to order a refund and compensate a customer for a failure to deliver an apartment in accordance with the terms of the contract.

On April 8, 2022, a three-judge bench led by Justice U U Lalit stated that if the commission finds that any allegations contained in the complaint about the services are proven, it shall issue an order to the concerned party directing him to return to the complainant the price or, as the case may be, the charges paid by the complainant under Section 14 of the Consumer Protection Act.

"If a consumer prays for a refund of the amount, without an alternative prayer, the Commission will recognize such a right and grant it, of course, subject to the merits of the case. If a consumer seeks alternative reliefs, the Commission will consider the matter in the facts and circumstances of the case and will pass appropriate orders as justice demands," quoted the bench as saying.

The Supreme Court made these remarks while hearing an appeal by Experion Developers Private Limited, which was ordered by the Commission to refund an amount of Rs 2,06,41,379 to the consumer, plus interest at 9% per annum, for failing to deliver possession of the apartment within the time specified in the apartment buyers agreement.