NEW DELHI: The Delhi High Court has asked NBCC to refund over Rs 76 lakh along with interest to a homebuyer after it failed to deliver possession of his flat, bought in 2012, and also awarded compensation of Rs 5 lakh for causing “extreme mental agony”.
Justice Subramonium Prasad, while allowing the homebuyer’s petition against NBCC, observed that purchasing a house is one of the most significant investments an individual or a family makes in their lifetime, and it often involves years of savings, meticulous planning and emotional investment, and therefore compensating wronged homebuyers is not just a matter of rectifying past injustices but also about deterring future misconduct.
The petitioner, a retired government employee, said he purchased the flat in ‘NBCC Green View Apartments’, a project launched in 2012 for Gurugram, but in spite of paying the entire sale price of over Rs 76 lakh in 2017, the unit was never handed over to him.
In the order passed on May 8, the court observed that the petitioner has been deprived of his money for the last 10 years and “structurally defective houses” have been constructed, leaving him in a complete lurch, and NBCC should be “dealt with severely” for reluctance to pay interest on the amount and ensuring the petitioner’s rehabilitation.
Taking judicial notice of geometric progression of price of land in the national capital region, the court said the “pittance” offered by NBCC to only return the principal amount was not an offer in the eyes of law and a rent allowance of Rs 12.50/- per sq. ft. for six months was not an adequate compensation. “This court is, therefore, inclined to allow the instant writ petition directing the respondent/NBCC to return the entire amount of money paid by the Petitioners within a period of six weeks from today along with interest @ 12% from 30.01.2021 till today.
“In view of the fact that the petitioner has been forced to shift accommodation and fend for himself in the last seven years and has been put to extreme mental agony, this court is inclined to direct the NBCC to pay a sum of Rs 5 lakh to the petitioner,” the court ordered.
“This is a classic case of extreme hardships suffered by a home buyer who has been made to run from pillar to post after having spent his entire life savings... Respondent has been exceedingly unfair in treating the home buyers in this manner,” the court observed.
NBCC accused the petitioner of “forum shopping,” claiming he had already approached forums under the RERA Act and the Consumer Protection Act, and thus, the petition should not be considered by the high court.
The court, however, stated that in this case, the petitioner’s act of seeking out various forums was due to “desperation” rather than a deliberate strategy. This behavior, the court noted, resulted from a sense of frustration, helplessness, and lack of legal knowledge.
According to the court, the petitioner signed the agreement in 2012 and, in the following five years, had invested over Rs 76 lakh. He also received a “No Dues Certificate,” yet structural defects surfaced after some residents began occupying the flats. The petitioner and many others were left in a difficult position, prompting them to seek recourse through multiple forums.
The court said that when builders fail to deliver on their promises, they undermine the trust and financial security of homebuyers, leading to stress, anxiety, and uncertainty. This compels buyers to seek legal remedies.