{"id":173610,"date":"1999-09-14T00:00:00","date_gmt":"1999-09-13T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/tulip-park-co-operative-housing-vs-sai-overseas-import-and-export-on-14-september-1999"},"modified":"2017-09-22T06:20:54","modified_gmt":"2017-09-22T00:50:54","slug":"tulip-park-co-operative-housing-vs-sai-overseas-import-and-export-on-14-september-1999","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/tulip-park-co-operative-housing-vs-sai-overseas-import-and-export-on-14-september-1999","title":{"rendered":"Tulip Park Co-Operative Housing &#8230; vs Sai Overseas Import And Export on 14 September, 1999"},"content":{"rendered":"<div class=\"docsource_main\">Supreme Court of India<\/div>\n<div class=\"doc_title\">Tulip Park Co-Operative Housing &#8230; vs Sai Overseas Import And Export on 14 September, 1999<\/div>\n<div class=\"doc_bench\">Bench: S. Saghir Ahmad, D.P. Wadhwa<\/div>\n<pre>           CASE NO.:\nAppeal (civil)  13417 of 1996\n\nPETITIONER:\nTULIP PARK CO-OPERATIVE HOUSING SOCIETY LTD.\n\nRESPONDENT:\nSAI OVERSEAS IMPORT AND EXPORT\n\nDATE OF JUDGMENT: 14\/09\/1999\n\nBENCH:\nS. SAGHIR AHMAD &amp; D.P. WADHWA\n\nJUDGMENT:\n<\/pre>\n<p>JUDGMENT<\/p>\n<p>1999 Supp.(2) SCR 377<\/p>\n<p>The Judgment of the Court was delivered by<\/p>\n<p>D.P. WADHWA, J. Appellant was complainant before the National Consumer<br \/>\nDisputes Redressal Commission (for short `National Commission&#8217;).<br \/>\nProceedings were initiated under the Consumer Protection Act, 1986, under<br \/>\nwhich National Commission has been constituted to entertain complaints<br \/>\nwhere value of the goods or services and compensation, if any, claimed<br \/>\nexceeds Rs. 20 lacs. National Commission is also an Appellate Authority. It<br \/>\nhears the appeals from orders of the State Commission.\n<\/p>\n<p>The complainant, a co-operative housing society, had complained short-fall<br \/>\nin services rendered by the respondent, a builder and developer, which had<br \/>\nagreed to construct and sell 64 flats to the complainant in a building<br \/>\ncalled Tulip Park. The complainant is not happy with the order dated June<br \/>\n21, 1996 of the National Commission in one aspect and it is that while<br \/>\nunder the agreement dated May 10, 1990 respondent had agreed to construct<br \/>\nthe flats having total saleable area measuring 34, 361 sq. ft. at the rate<br \/>\nof Rs. 630 per sq. ft. but the saleable area actually measured comes to<br \/>\n29,788. 34 sq. ft. There being thus short fall of 4,572.66 sq. ft. in the<br \/>\nconstructed area. Since complainant had paid the price for the area of 34,<br \/>\n361 sq. ft. and it got only 29,788.34 sq. ft. it claimed refund from the<br \/>\nrespondent of an amount of Rs. 28,80,776 (4, 572.66 sq. ft. x Rs. 630 per<br \/>\nsq. ft.). The National Commission did not agree with the complainant. In<br \/>\nthis appeal by the complainant we are called upon to decide on, what the<br \/>\nappellant says, if there is any deficiency in services provided by the<br \/>\nrespondent, the builder. Under clause (g) of Section 2 of the Act<br \/>\n&#8220;deficiency&#8221; means &#8220;any fault, imperfection, shortcoming or inadequacy in<br \/>\nthe quality, nature and manner of performance which is required to be<br \/>\nmaintained by or under any law for the time being in force or has been<br \/>\nundertaken to be performed by a person in pursuance of a contract or<br \/>\notherwise in relation to any service&#8221;. A complaint lies if there is<br \/>\ndeficiency in service of housing construction. &#8220;Service&#8221; under clause (o)<br \/>\nof Section 2 means service of housing construction as well. Grievance of<br \/>\nthe complainant is that the respondent failed to give 34,361 sq.ft. of area<br \/>\nin the building Tulip Park in accordance with the terms of the contract and<br \/>\nthat less area was given. When this fact was brought to the notice of the<br \/>\nrespondent it took the stand for the first time that there was a mistake<br \/>\nand it had forgotten to include the stilt area in the agreement and claimed<br \/>\nthat the complainant had to pay for the stilt area. There is no ground<br \/>\nfloor as the building is constructed on stilts. Price of land is included<br \/>\nin the cost of construction calculated at the rate of Rs. 630 per sq. ft.<br \/>\nActual total saleable area given was 29,788.34 sq. ft. and thus there was<br \/>\nthe shortfall of the actual area. The respondent was liable to return the<br \/>\namount for the shortfalls of this area aggregating to Rs. 28,80, 776.\n<\/p>\n<p>We may at this stage refer to some of the terms of the agreement alleged<br \/>\nbreach of which led the complainant to approach the National Commission.<br \/>\nThe agreement recites as to how the respondent, as developer, became<br \/>\nentitled to sell the land and the building constructed thereon. Respondent<br \/>\nwas to construct the building as per sanctioned plan granted by the Bombay<br \/>\nMunicipal Corporation. As per the sanctioned plan respondent was required<br \/>\nto construct 64 flats in two wings `A&#8217; and `B Wing `A&#8217; has seven floors<br \/>\nwith four flats on each floor totalling 28 flats. Wing `B&#8217; has six floors<br \/>\nwith six flats on each floor totalling 36 flats. With the agreement a plan<br \/>\nwas annexed showing the flats on each floor of both the wings giving sq.<br \/>\nft. area of the flat. The plan, however, does not show the area of the<br \/>\ncommon places. Agreement specifically records the declaration of the<br \/>\nbuilder that the building is sanctioned for development and construction as<br \/>\nper the sanctioned plan granted by the Bombay Municipal Corporation. Orders<br \/>\nof the Bombay Municipal Corporation and the sanctioned plan were part of<br \/>\nthe agreement. Members of the complainant are the employees of the Air<br \/>\nIndia and they formed themselves into a cooperative society called Tulip<br \/>\nPark Co-operative Society Ltd. They entered into agreement with the builder<br \/>\non &#8220;package deal&#8221; basis to purchase the proposed building under<br \/>\nconstruction and the land described thereunder at the rate of Rs. 630 per<br \/>\nsq. ft. saleable area. Two clauses of the agreement which are relevant for<br \/>\nour purpose are as under :\n<\/p>\n<p>&#8220;1. The Developer shall sell and the Purchaser herein as Chief Promoter<br \/>\nrepresenting himself, and the enrolled members of the proposed Co-operative<br \/>\nHousing Society to be formed and registered under the Maharashtra Co-<br \/>\noperative Societies Act have agreed to purchase on what is commonly termed<br \/>\n&#8220;Package Deal&#8221; basis, the said proposed Building to be constructed and<br \/>\ncomprising of 64 residential flats totally permitted for construction to<br \/>\nthe extent of 34,361 sq. ft, of the saleable area inclusive of the balcony,<br \/>\nlift, landings lobby and staircase area on the portion of land admeasuring<br \/>\n1820 sq. mts., hearing C.T.S. No. 263, SrNo.7-A, Hissa 13, being, lying and<br \/>\nsituated at village Marol, within the registration district of Bombay<br \/>\nSuburban of Greater Bombay, more particularly described hereunder in the<br \/>\nSecond Schedule and prominently indicated on the Plan annexed hereto as<br \/>\nAnnexure &#8220;1-A&#8221; together with the amenities and specification as more<br \/>\nparticularly set out in the List of Amenities annexed hereto as Annexure<br \/>\n&#8220;II&#8221; at the consideration (which includes the value of the Land) that is<br \/>\nRs. 630 per sq. ft. saleable area of the building and on the terms and<br \/>\nconditions as hereafter set out. It is agreed there will be no dispute on<br \/>\nthe saleable area by the purchasers on any grounds and on any reasons.\n<\/p>\n<p>2. That the total consideration (including the value of the Land and<br \/>\namenities to be provided by the Developer) at the agreed deal rate of<br \/>\nRs.630 per sq ft. of the proposed Building being constructed and consisting<br \/>\nof the 64 residential flats and to the extent of 34361 sq. ft saleable area<br \/>\n(inclusive of the balcony, lifts, landing, lobby and the staircase areas)<br \/>\nis agreed to be a sum of Rs. 2,16,47,430 (Rupees Two Crore Sixteen Lacs<br \/>\nForty Seven Thousand Four hundred and Thirty Only).&#8221;\n<\/p>\n<p>It is not disputed that the building was constructed as per the sanctioned<br \/>\nplan and each flat has the area as given in the plan annexed to the<br \/>\nagreement. It is the manner of calculation of the saleable area.<br \/>\nComplainant was put to notice of the area to be constructed in the building<br \/>\nfrom the plan annexed with the agreement as well as with the sanctioned<br \/>\nplan. Two things are apparent from the terms of the agreement: (1) Proposed<br \/>\nbuilding was to have 64 residential flats totally permitted for<br \/>\nconstruction to the extent of 34,361 sq ft. of the saleable area (emphasis<br \/>\nsupplied) and (2) there will be no dispute on the saleable area by the<br \/>\npurchaser on any ground and on any reason. We are not going into the<br \/>\nquestion if the area under the stilts was to be paid separately as claimed<br \/>\nby the respondent or not as that has been negatived by the National<br \/>\nCommission. We repeatedly put it to the learned counsel for the complainant<br \/>\nas to how and where the area of 4572.66 sq. ft. could have been built in<br \/>\nthe building, shortfall, which is alleged. There was no answer to that and<br \/>\nthere could not be any as the building was constructed as per the<br \/>\nsanctioned plan. Complainant has brought on record a certificate by its<br \/>\narchitect giving the saleable area as 29,788,34 sq. ft. There is also an<br \/>\naffidavit in support of the report of the architect but what we find is<br \/>\nthat the report of the architect is bereft of particulars. The report did<br \/>\nnot find favour with the National Commission and we think rightly.\n<\/p>\n<p>Considering the fact that the building was constructed as per the<br \/>\nsanctioned plan and each flat has the area as given in the agreement and<br \/>\nthat complainant had agreed not to raise any dispute regarding saleable<br \/>\narea, particularly when permitted area of construction was to the extent of<br \/>\n34,361 sq. ft., we do not think there is any deficiency in service in<br \/>\n&#8220;housing construction&#8221; provided by the respondent. We uphold the orders of<br \/>\nthe National Commission in rejecting that prayer of the complainant wherein<br \/>\nit had claimed that respondent be directed to refund Rs. 28,80,776 towards<br \/>\nthe shortfall of the saleable area.\n<\/p>\n<p>The appeal is dismissed. We, however, leave the parties to bear their own<br \/>\ncosts.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Supreme Court of India Tulip Park Co-Operative Housing &#8230; vs Sai Overseas Import And Export on 14 September, 1999 Bench: S. Saghir Ahmad, D.P. Wadhwa CASE NO.: Appeal (civil) 13417 of 1996 PETITIONER: TULIP PARK CO-OPERATIVE HOUSING SOCIETY LTD. RESPONDENT: SAI OVERSEAS IMPORT AND EXPORT DATE OF JUDGMENT: 14\/09\/1999 BENCH: S. SAGHIR AHMAD &amp; D.P. [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[30],"tags":[],"class_list":["post-173610","post","type-post","status-publish","format-standard","hentry","category-supreme-court-of-india"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Tulip Park Co-Operative Housing ... vs Sai Overseas Import And Export on 14 September, 1999 - Free Judgements of Supreme Court &amp; High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/tulip-park-co-operative-housing-vs-sai-overseas-import-and-export-on-14-september-1999\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Tulip Park Co-Operative Housing ... vs Sai Overseas Import And Export on 14 September, 1999 - Free Judgements of Supreme Court &amp; 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