SRI PITHANI BALA BHASKARA VENKATESWARA RAO Vs. SATYAM CONSTRUCTIONS

JUDGEMENT

(1.) THE unsuccessful complainant is the appellant.

(2.) THE facts leading to filing of the appeal as narrated by the appellant are that the appellant entered into a construction agreement dated 3.9.2007 with the respondent for purchase of flat bearing No. G -2, ground floor, measuring 800 sq.ft. for a consideration of Rs. 6,60,000. At the time of execution of the agreement the appellant has paid a sum of Rs. 50,000 and the balance amount was agreed to be paid in instalments at the time of registration of the flat. The appellant has paid further amount of Rs. 50,000 on 6.12.2007. The respondent assured the complainant that it would arrange for the housing loan. On being informed by the respondent that in order to receive substantial loan amount, the appellant has to clear off his personal loan, the appellant has repaid the entire personal loan amount on 10.4.2008. The respondent has not processed the loan application of the appellant nor furnished copies of the documents such as plan approval, link documents, encumbrance certificate, etc., for the appellant to obtain loan from other financial institutions. The supervisor of the respondent obtained the signature of the appellant on a paper stating that it was necessary to show it to the respondent that the appellant visited the apartment and expressed no intention as to alteration. The appellant applied to ICICI Bank Limited and got sanctioned the loan for a sum of Rs. 7,43,829 on 27.6.2008 and he had shown it to the respondent requesting the respondent to furnish the copies of the document for release of the loan amount. The respondent got issued notice through its Advocate on 14.8.2008 that the appellant failed to abide by the terms and conditions of the agreement of sale and thereby the agreement of construction was cancelled. The appellant has got issued reply on 27.8.2008 requesting respondent to register the flat. The failure of the respondent to receive the balance consideration of Rs. 5,60,000 from the appellant and execute sale deed in favour of the appellant amounts to negligent deficiency in service and unfair trade practice on the part of the respondent.

(3.) THE respondent resisted the claim contending that there was an understanding between the appellant and the respondent that the appellant would pay half of the total consideration of the flat at the time of construction of the slab. The slab was completed in the third week of October 2007. The appellant had not paid the amount to get the sale deed registered in his favour in spite of request therefore made by the respondent. The appellant agreed to pay an amount of Rs. 3,05,000 on 9.12.2007 for paid only a sum of Rs. 50,000. The respondent has not agreed to arrange for housing loan to the appellant. As per the norms of the Government, the builder has to collect an amount of 25% at the time of foundation, an amount of 40% on the total cost of the flat at the time of lintel level and 60% on the total cost of the flat at the time of roof level and 80% on the total value of the flat for the semi -finished flat. The appellant has to pay an amount of 60% on the total value of the flat, but he has paid a sum of Rs. 1,00,000.