LEGAL ASPECTS OF BUSINESS

Report
on
Understanding and Application of Law

Submitted by:
DEVINDER SINGH
2021/101
SECTION – B

Submitted To:
Dr. Sushil K. Dixit
 ARTICLE CHOSEN AND EXPLANATION

Builder fined for delay in possession of flat, installing lift

Sarita Kalia, a resident of Omaxe Cassia, New Chandigarh, approached the Commission after
the builder allegedly failed to provide promised services. In the complaint, Sarita said she paid
a sum of Rs83,03,501 to the builder, Omaxe Chandigarh Extension Developer Limited, for a
period from July 25, 2018 to November 25, 2019, towards her flat located at Omaxe Cassia,
Phase 3, Mullanpur, Omaxe Chandigarh Extension, SAS Nagar, Mohali, Punjab. The State
Consumer Disputes Redressal Commission, Chandigarh, has directed Omaxe Chandigarh
Extension Developers Limited to pay Rs15,000 as compensation for delay in installing a lift in
its residential project at Mullanpur. It also directed the builder to pay Rs15,000 as litigation
cost to a consumer.

As per the agreement, the flat was to be delivered latest by January 2019, but the flat was
handed over to her in May 2019 and the lift was not made available in the building. the builder
failed to complete the pending work despite repeated emails. Even the club house was not made
available at the project site.

The Commission has also directed the builder to pay 9 per cent penal interest for delaying the
possession of the flat.

The above case shows that fraudulent misrepresentation has been made as the organisation had
promised to deliver the flat within a specific time interval. This news is an example of a B2C
contract that is, business to consumer contract wherein the concept of misrepresentation is
utilised as it generates entry into a contract. The consumer in this case was in a hurry to move
into a new flat and the closest deadline by this organisation lured her into this contract. The
promisor is the organisation that is, Omaxe Chandigarh Extension Developers Limited and the
promisee is the consumer. The deadline given by the organisation shows that it is an example
of future consideration. This contract was violated when the deadline was not met, additionally
the facilities promised were not delivered, thereby making the consumer liable to claim
compensation from the concerned court.