G.L. NARASIMHAM Vs. B.S. VENKATESWARULU & ANR.

JUDGEMENT

(1.) THE facts of the case in brief are that the complainant, Sri B.S. Venkateswarulu had purchased flat No. 101 for Rs. 4,95,000 payable in instalments from M/s. Kanyam Constructions, Hyderabad. He had paid Rs. 50,000 at the time of execution of agreement of sale on 14.2.1997 and further paid Rs. 2,25,000. It is the case of the complainant that he had obtained housing loan of Rs. 3,00,116. Out of the total sanctioned amount of Rs. 5,22,616 and as per the terms of agreement, actual possession of the flat was not delivered within two months. Though the complainant was ready to pay the balance amount of Rs. 2,20,000, the builder did not execute the sale deed. Hence he filed a complaint before the District Forum for direction to the builder and the owner of the property to execute sale deed and award compensation of Rs. 50,000 with costs.

(2.) THE builder contested stating that the complainant had not paid the balance amount despite notice issued to him. The possession was handed over but the agreement could not be executed due to dispute between the builder and the owner and the owner filed a civil suit in 1998 questioning the terms and conditions of the Development Agreement and the builder had made an application to the Municipal Corporation, Hyderabad for regularization as there were some deviations and the complainant had not sustained any monetary loss as he let out the flat from March, 1998.

(3.) MR . G.L. Narasimham, the owner of the property denied the allegations made by the complainant as well as Respondent No. 1. He stated that the flats constructed by M/s. Kanyam Constructions were illegal since they were not constructed as per the approved plan sanctioned by the Municipal Corporation, Hyderabad. A criminal case is also pending before the XVI Metropolitan Magistrate, Hyderabad. He further submitted that the builder has got only permissible possession to construct the flats and has no right to hand over possession of the flat to the complainant.