Delhi High Court Directs NBCC To Return Full Money To Aggrieved Homebuyer, Orders ₹5 Lakh Compensation Towards Mental Agony

The Delhi High Court has directed the National Buildings Construction Corporation (NBCC) to return entire amount of over Rs. 76 lakh deposited by a homebuyer in 2017 regarding a flat which was never handed over to him, observing that he had been left in complete lurch.

Justice Subramonium Prasad observed that purchasing a house is one of the most significant investments an individual or family make in their lifetime and often involves years of savings, meticulous planning and emotional investment.

The court ordered NBCC to return the entire amount of money paid by the litigant within six weeks, along with interest @ 12% from January 30, 2021 (the date when possession certificate was issued) till today.

“When builders of such homes fail to deliver what was promised, they shatter the trust and financial security of homebuyers and also put homebuyers in a situation where they may face immense stress, anxiety, uncertainty and ultimately be forced to navigate legal channels for seeking recourse,” the court said.

It added the emotional toll of living in limbo, uncertain about the future of their investment and the stability of their living arrangements cannot be understated.

Observing that compensating wronged homebuyers is not just a matter of rectifying past injustices but also about deterring future misconduct, the court ordered the NBCC to pay Rs.5 lakh to the litigant.

The petition was filed as the flat was not delivered to the litigant even after six years of the final instalment and about 10 years after the first application money was paid.

The NBCC opposed the plea stating that the litigant had approached various forums for same relief and he cannot be permitted to do forum shopping.

Allowing the plea, Justice Prasad said that it was a classic case of extreme hardships suffered by a homebuyer who was made to run from pillar to post after having spent his entire life savings.

“It is unfortunate that a 'State' under Article 12 of the Constitution of India has raised this objection that the Petitioner is guilty of forum shopping,” the court said.

It added that the act of the litigant of approaching various forums stemmed from his desperation rather than a strategic pursuit of a favourable dictat.

“In view of the fact that the Petitioner has been deprived of his money for the last 10 years, structurally defective houses have been constructed by the NBCC, the Petitioner has been left in complete lurch, the refusal of the Respondent which is a State to pay interest on the amounts which it held in trust of the Petitioners and the reluctance to ensure that the Petitioner is rehabilitated effectively, the Respondent should be dealt with severely,” the court said.

Counsel for Petitioners: Mr. Raghav Vij, Mr. G.S. Rana and Mr. Saurabh Kaushal, Advocates

Counsel for Respondents: Mr. Arvind Minocha, Sr. Advocate with Mr. Ray Vikram Nath, Mr. Akshat Chaudhary and Mr. Harshvardhan Jha, Advocates; Mr. Chiranjiv Kumar, Mr. Mukesh Sachdeva and Ms. Neelima, Advocates for Union of India

Title: SANJAY RAGHUNATH PIPLANI AND ANR. v. NATIONAL BUILDINGS CONSTRUCTION CORPORATION DELHI AND ANR.

Citation: 2024 LiveLaw (Del) 566

Click here to read order