Supreme Court Holds Builder Liable To Compensate Residents Welfare Association For Not Providing Promised Amenities

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Supreme Court Holds Builder Liable To Compensate Residents Welfare Association For Not Providing Promised Amenities

Case: The Managing Director (Shri Girish Batra) M/s Padmini Infrastructure Developers Ltd versus The General Secretary (Shri Amol Mahapatra) Royale Garden Residents Welfare Association

Coram: Justice Hemant Gupta, Justice V Ramasubramanian

Case No: CIVIL APPEAL NO.2998 OF 2010

Court Observation: “In the light of the aforesaid findings by an independent architect appointed by the National Commission it is not open to the opposite party to create a façade as though all essential services and amenities were handed over in a fully functional state. If all the aforesaid services had been handed over in a fully functional state, the opposite party should have taken an acknowledgment in writing from the complainant. In the alternative, the opposite party should have insisted upon an appropriate provision in the Agreement dated 15.11.2003”.

“The complainant shall be entitled to all told monetary compensation in a sum of Rs 60 lakh, now lying in deposit with the Registry of this court, together with the interest accrued thereon, in lieu of the reliefs sought in prayer of the complaint. The opposite party (builder) shall, within two weeks, remove all building material stored by them in the club house in the basement of Tower Eden & hand over possession of the club house to the complainant”.

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Keywords

Builder Liable, Compensate Residents, Welfare Association, Promised Amenities