Failure of a real estate company to file its response within the stipulated period of 45 days before NCDRC on homebuyers’ complaint proved costly as it has been directed by Supreme Court to pay Rs 1 lakh each to 31 buyers who filed a case against it and granted it more time to file reply.
In this case, NCDRC had foreclosed right of the real estate company to file a response after it did not adhere to the timeline fixed under the law. As the company would not be able to put on record its stand and counter homebuyers allegation before the commission which would affect its case, the builder approached SC to allow it to file response.
Thirty one homebuyers, who had booked flats in a super luxury residential project ‘US Open’ at Mulund in Mumbai, approached the commission against real estate company Ricardo Construction due to delay in handing over their flats. The commission entertained their plea and issued notice to the firm on Feb 6 and its lawyer who was present was allowed to file vakalatnama. Thirty-day time was granted to the company to file its written statement. But on that the commission found that the response was not filed and foreclosed its right to file response.
“The appellant is permitted to file written statement subject to payment of costs of Rs 1 lakh each to 31 complainants. The payment of costs shall be a condition precedent for acceptance of written statement on record. The costs, as above, shall be transferred in the respective bank accounts of the respondents,” the bench said.
