Telangana State Commission Validates Builder's Claim of Outstanding Payments

Brief Facts of the Case

M/S Narne Estates/builder launched a project named “Narne Estates, East City” to sell plots. A third party/initial owner became a member, purchased plots, and received registered sale deeds after full payment. Later, she sold the plots to the complainant, who paid the full amount and requested a membership transfer. The builder initially demanded Rs. 50,000 and subsequently enhanced the outstanding amounts multiple times and finally claimed an amount of Rs. 46,239 along with maintenance charges and interest. The complainant objected to the demand and issued a legal notice claiming that no maintenance help was required as he was staying nearby. The builder did not respond and thus the complainant filed a complaint before the District Commission. The District Commission allowed the complaint and directed the builder to not interfere with the rights of the complainant, pay Rs. 5,00,000 as compensation and Rs. 10,000 as litigation costs. Aggrieved by the District Commission's order, the builder appealed before the State Commission of Telangana.

Contentions of the Builder

The builder argued that the complaint is not maintainable in law or on facts. It claimed the complainant suppressed key facts and failed to pay overdue amounts despite agreeing to do so through emails. The builder stated the complaint was filed for wrongful gain and requested its dismissal with exemplary costs.

Observations by the State Commission

The Commission observed that the builder presented substantial evidence to prove that dues were still pending in the initial owner's account, despite the complainant's assertion that no outstanding amounts existed. Key documents, including correspondence between the builder, the initial owner, and the complainant, indicated that the builder had consistently requested payments for overdue amounts, transfer fees, development charges, and maintenance costs. The evidence revealed that the initial owner was aware of the dues and had engaged with the builder regarding the sale of the plots. Furthermore, the complainant acknowledged the builder's demands for these payments and even negotiated the amounts at different stages but failed to disclose these details in the complaint. The Commission noted that the builder eventually offered a reduced settlement amount, providing a special opportunity for the complainant to clear the dues. The State Commission partly allowed the appeal and modified the District Commission's order. It directed the complainant to pay Rs.37,030 with 8% interest from the specified date, after which the builder must issue a “No Due Certificate” and transfer the ownership of the plots to the complainant. The builder was permitted to withdraw the statutory deposit with interest.

Case Title: M/s Narne Estates Pvt., Ltd. Vs. Shri Mohd. Adbul Rahim

Case Number: F.A. No. 381/2020