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Delhi High Court imposes ₹5 lakh fine on NBCC for causing homebuyer ‘extreme mental agony’

After considering the case, the Bench said that the pittance offered by the NBCC to only return the principal amount without any interest cannot be said to be an offer in the eyes of law, especially when the price of land is increasing by geometric progression in the National Capital Region (NCR).

“A rent allowance of Rs.12.50/- per sq. ft. to the home buyer for six months and assisting in hiring flats in the nearby area cannot be said to be an adequate compensation. In fact, the Respondent [NBCC] has been exceedingly unfair in treating the home buyers in this manner.”

The Bench further observed that NBCC is an instrumentality of the State and is duty bound to act reasonably and fairly.

The Court rejected the NBCC’s objection that the petitioner was forum shopping.

“Even though it is clear that while seeking legal recourse, the Petitioner did approach various forums, by filing impleadment applications before the NCDRC besides filing a complaint before the Haryana RERA for redressal of his grievances and it is well established, in various judgements of the Apex Court, that the act of forum shopping is condemned, this Court is of the opinion that in the facts of the present case, such an act of approaching various forums stems from desperation rather than a strategic pursuit of a favourable dictat. This behaviour of the Petitioner arises out of a sense of frustration, helplessness and lack of legal knowledge.”

Source: Barandbench

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