No compensation for delay in delivery of flats purchased for commercial purpose

National Consumer
Disputes Redressal Commission (NCDRC): When a person purchased flats and later sold them for
profit, he does not fall within the purview of “consumer” and is not entitled
for compensation from the construction firm for delay in handing over
possession of the flats, observed NCDRC while rendering relief to a
construction firm. The Commission was hearing a revision petition filed by
Magrath Property Developer challenging the order of Karnataka State Commission
vide which the order of District Consumer Forum passed in favour of the
Complainant was upheld. Earlier, Complainant had booked six flats in the
project floated by Magrath Property Developer and alleging delay in possession
of the said flats, he approached District Consumer Forum. District Forum
allowed the complaint and Magrath Property Developer was directed to pay Rs
8,86,347 as interest, Rs 1 lakh as compensation and Rs 10,000 as cost to the
Complainant. In appeal filed by the Construction Firm, State Commission upheld
the order of District Consumer Forum. In its defense, the Firm contended that
the Complainant had purchased six apartments in the project and had sold five
apartments and generated profit, hence he does not fall within the purview of
“consumer”. After hearing both the parties and perusing the relevant documents,
NCDRC observed that, “There is nothing on record that complainant booked six
flats to accommodate all his family members and Learned State Commission
without any basis assumed that flats were booked for his family members. Had it
been so, he would not have sold five flats and generated profit. But, it is
admitted fact that complainant booked six flats, so, he does not fall within
the purview of “consumer.” While holding that once complainant does not fall
within the purview of “consumer”, District Forum committed error in allowing
the complaint filed by him, NCDRC set aside the orders of State Commission and
District Forum, [Magrath Property
Developer v. A.S.Veeranna, 2015
SCC OnLine NCDRC 16, decided on June 26, 2015]
Source: Legal news India

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