Consumer Protection Act – Flat Agreement – Interpretation of terms and conditions – Claim of hume buyers for refund of amount on termination of agreement – NCDRC however directed to give possession

Agreement to sell dated 29.11.2013 for purchase of 4 BHK flat between the appellants & the respondent and possession for fit outs to be given on 30.6.2016 with grace period of one year. In all Rs.2,25,31,148/- out of total consideration of Rs.7,55,50,956/- was paid by the appellants.

Since the possession was not given by due, agreement was terminated and the home buyers approached the National Consumers Disputes Resolution  Commission for refund with compound interest and compensation for harassment, mental agony and torture.

However, NCDRC directed to give possession of the flat to the complainants and in case they do not wish to take possession, they were directed to make request for refund of the amount.  Aggrieved by the said judgment and the directions, the appellants – complainants approached the Supreme Court.

HELD that in interpretative process the Court cannot rewrite or create a new contract between the parties and simply has to apply the terms and conditions agreed between the parties.   It cannot substitute their own view of the presumed understanding of the commercial terms and the explicit terms of a contract are always the final word on the intention of the parties.  The NCDRC has overstepped its powers and jurisdiction in ignoring the convenants in the Agreement and in introducing its own logic and rationale to decide as to what the future course of action of the parties and particularly, of the appellants.  

Civil Appeal No.971 of 2023 in Venkataraman Krishnamurthy and another Vs. Lodha Crown Buildmart Pvt Ltd.