Failure To Complete Construction On Time, Ernakulam District Commission Holds Builder Liable

Brief Facts of the Case

The complainants engaged the builder to construct a residential house for Rs. 10.5 lakhs, later increased unilaterally to Rs. 12 lakhs without consent. Despite full payment, the builder failed to complete the work. The complainants, relying on the builder's assurances, funded the construction through loans, grants, and borrowings. However, the work was substandard, including an uneven staircase, making it unusable. The complainants seek completion of construction, a refund of Rs. 12 lakhs with interest, Rs. 7 lakhs as compensation for mental agony, and Rs. 50,000 as litigation costs.

Contentions of the Builder

The builder was set ex-parte as they failed to file their written version despite getting notices from the Commission.

Observations by the District Commission

The District Commission observed that the builder failed to complete the construction on time and delivered substandard work, which amounts to a deficiency in service and unfair trade practice under the Consumer Protection Act, 2019. Moreover, the cost was arbitrarily enhanced from Rs. 10.5 lakhs to Rs. 12 lakhs without the consent of the consumer, making it a breach of contract of service.Citing Emmar MGE Land Ltd. v. Amit Puri, Lucknow Development Authority v. M.K. Gupta, and Fortune Infrastructure v. Trevor D'Lima, the Commission noted that delays and defects entitle consumers to compensation for financial and emotional distress. The builder's failure to respond to notices or appear before the Commission was deemed an admission of guilt. The Commission directed the builder to refund Rs. 12 lakhs, pay Rs. 1 lakh as compensation for mental agony and Rs. 20,000 for litigation costs.

Case Title: Karuppuswami Vs. Thodiyil Builders

Case Number: C.C. No. 111/2024

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