2011 STPL(Web) 131 SC 1Vinod Kumar Thareja Vs. Alpha Construction
2011 STPL(Web) 131 SCSUPREME COURT OF INDIA
(R.V. RAVEENDRAN & A.K. PATNAIK, JJ.)
VINOD KUMAR THAREJA
M/S ALPHA CONSTRUCTION & ORS.
RespondentsCivil Appeal No.1493 of 2011
[Arising out of SLP [C] No.7283/2010]
-Decided on 08-02-2011.
Consumer – Impleadment of Party at appeal stage by opposite PartyORDERR. V. Raveendran J.-
Leave granted.2. The appellant, the owner of a plot measuring about 11000 sq.ft. situated at Bhopal, entered intoa Joint Venture Agreement dated 2.7.2004 with the first respondent for development of the saidplot by construction and sale of nine duplex flats. Under the said agreement, the appellant was toprovide his land to the first respondent for construction of flats; the first respondent wasresponsible for the construction and sale of the duplex flats; and out of the sale proceeds realizedby sale of the flats, the appellant was entitled to 45% and the first respondent was entitled to thebalance of 55%. The first respondent was authorized to enter into agreements of sale withprospective purchasers of flats even at the stage of construction and receive the price either in alump sum or in instalments. The first respondent was solely responsible for completion of construction and the quality of construction. According to the appellant, his obligation under thejoint venture agreement was only to contribute the land and in consideration thereof receive 45%of sale proceeds.3. In pursuance of it, the appellant and first respondent entered into an agreement dated 18.9.2004with respondents 2 and 3, who were interested in purchasing one of the nine duplex flats to beconstructed in the property. The said agreement clearly stated that the first respondent was toconstruct the duplex flat and receive the consideration from respondents 2 and 3. In pursuance of it, the first respondent's proprietor (Rajbir Singh), as Attorney holder of the appellant, executed asale deed dated 14.1.2005 in favour of respondents 2 & 3, conveying an extent of 968 sq.ft., of land with a skeletal structure thereon for Rs.6 lakhs.4. Respondents 2 and 3 filed a complaint dated 22.6.2006 before the District Consumer RedressalForum, Bhopal (`District Forum' for short) against the first respondent alleging deficiency inservice. In the said complaint they alleged that they had paid Rs.11,80,000/- to the firstrespondent out of a total consideration of Rs.13,50,000/- for the purchase of a duplex flat; that on25.6.2005, the Municipal Corporation demolished the structure constructed by the firstrespondent; and that the first respondent committed an unfair trade practice by not disclosing thetrue facts and by not delivering the constructed flat. The complainants also alleged that thereafterthe first respondent failed to construct the flat and was guilty of gross negligence and deficiency
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