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Consumer protection case

(Querist) 02 April 2009 This query is : Resolved 
A is the land owner, he has given GPA to B, B inturn entered into a development agreement with C to construct a multi storied residential apartment complex.

Subsequently C constructed an apartment complex and in the same one unfinished flat was sold to Z. B on behalf of the A as GPA holder and C as a developer executed a register sale deed in favour of Z.

Later the flat was remained unfinished and now Z wants to file a case in consumer forum seeking a direction to finish the balance works of the flat or give money for taking up the finishing works.

Can he file case against A, B & c or C alone is liable?
Y V Vishweshwar Rao (Expert) 02 April 2009
A is Owner of the land and B is his GPA for sale &Development of the land and C is the actual builder/Developer and he has to complet the Cosntruction , the part of the A and B is relevant for title Transfer on the land and I am of the view that A & B have not ageed to cosntruct or complete the Cosntruction for Z or other Purchasers . The Sale Deed is also executed infavour of Z . In my opinion C is responsible to answer the claim of Z , if there is no other agreement between A, B & C , for cosntruction of Flats and sale to purchasers / like Z
Jithendra.H.J (Expert) 02 April 2009
you cant approach the consumer forum, it is purely a civil case.
Ashey (Expert) 03 April 2009
i agree with the view of Mr. Rao .. but A and B were to be impleaded as a party to the proceedings .. check whether the agreement between B and C regarding who is to take the responsibility of selling constructed/semi-constructed flats ?
Ashey (Expert) 03 April 2009
i agree with the view of Mr. Rao .. but A and B were to be impleaded as a party to the proceedings .. check whether the agreement between B and C regarding who is to take the responsibility of selling constructed/semi-constructed flats ?
sanjeev murthy desai (Expert) 03 April 2009
Dear Srinivas B. S. S. T.

Please clarify with out completion of the FLAT and with out enter the construction agreement with C how can Z purchased under the sale deed. And also completely gothorough the Develoment agreement any limitation period prescribed in the JDA to complete the building and also verify the any permission to sell clause in the JDA before complete the construction.

There is no construction agreement between Z and C. But, A is the owner of the property and B is the GPA holder of the that property and C is developer of that property under JDA.

Under the development agreement and Power of Attrney executed by B in favour of C that the undivided owner ship of the that property was allotted as per undivided share ratio mentioned in the Development Agreement.

In the circumstances, A, B and c are liable to give the compesation. But court has to dicide.

And Mr. Jithendra rightly sugested beacuse there is no liabilty( construction agreement)between c and z in the circumstances civil suit is fine.

sanjeev desai
adv. rajeev ( rajoo ) (Expert) 03 April 2009
In ur question it is not clear that for what purpose GPA was executed. So it is very difficult to ans ur question. If it was given for construction of building and it is unfinished then consumer forum has got jurisidction because it amounts deficiency in service. U can also file a civil suit.
Hiralal Das (Expert) 03 April 2009
I agree with the opinions, already given by my Ld. Friends.
Srinivas.B.S.S.T (Querist) 04 April 2009
By the views of the learned members it is clear that the details were not fuller.I apologize for the same.

A is the land owner. He gave registered power of Attorney to B with full rights such as sale, entering into agreements, mortgage etc.

Now B invoking the GPA has entered into development agreement with C to build a residential apartment building and in lieu of consideration to C, B (GPA Holder of A) shall register undivided share in the land and flats in favour of builder i.e., C or his nominees.

In such a process Z purchased flat both C and B (GPA holder of A) executed a registered sale deed in favour of Z.

Now the flat was remained unfinished. Can Z file consumer complaint against all ABC or C alone is liable?.

My view is that as the development agreement is in between C and B(GPA Holder of A) both B and A are necessary parties to the Complaint. Awaiting Views of learned members.
Srinivas.B.S.S.T (Querist) 04 April 2009
there is no limitation clause in the development agreement. Some of the flats in the complex are finished but for the flat purchased by Z the finishing works are balance.
Y V Vishweshwar Rao (Expert) 04 April 2009
There is no wrong in impleadding all the partie-A,B,& C for proper remeady to Z , but the liability of each party to be decided by the Court/Forum accordign to the agreement/s Terms only
sanjeev murthy desai (Expert) 04 April 2009
Dear Mr. Srinivas B. S. S. T

The party Z at the time of purchase of incomplete FLAT from A, B and C under the sale Deed which shall be narrated as the said FlAT construction completed with in the prescribed period. If the said Sale Deed does not has any construction complete clause the Parties A, B and C or not liable to compensate to Mr. Z. Becasue as per documents and agreement thereis no service default from A, B and C to Z. In the cirtcumstance Z can claim the compensate from Civil Suit.

In my veiw consumer case may be dimissed.

sanjeev desai
sanjay singh thakur (Expert) 04 April 2009
Dear Srinivas
Your case is a fit one to be filed in the Consumer Forum. So far making parties to the case you can make A,B and C all. But in my view its proper to make only C as O.P. because liability of making the same was upon C only.
Regards.


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