Kerala consumer rights panel directs commerce and industry body to pay ₹1 lakh as compensation for arbitrarily cancelling flat allotment

Kerala State Consumer Disputes Redressal Commission has directed the Kerala Chamber of Commerce and Industry (KCCI) to pay ₹1 lakh as compensation to a complainant for cancellation of his allotment of a studio flat at the Kerala Trade Centre near Marine Drive in Kochi “in an arbitrary manner.”

The Kerala State Consumer Disputes Redressal Commission has directed the Kerala Chamber of Commerce and Industry (KCCI) to pay ₹1 lakh as compensation to a complainant for cancellation of his allotment of a studio flat at the Kerala Trade Centre near Marine Drive in Kochi “in an arbitrary manner.”

The commission passed the order recently on a complaint filed by S. Rajkumar of Vazhakala. According to him, he had booked a studio flat in 2007 by paying ₹2 lakh as booking advance. The KCCI then informed the complainant that he had been allotted a flat. Following this, he paid ₹15 lakh more.

When the complainant received the draft agreement, he suggested certain amendments as the provisions in the agreement were contrary to the representation and assurance made by the KCCI at the time of receiving the booking advance. He was later told that the allotment was cancelled. He said the KCCI was yet to refund him an outstanding amount of ₹5 lakh.

The KCCI contended that the complainant had “unilaterally refused” to sign the agreement and insisted on changing its terms and conditions. Since he had refused to sign the agreement, the booking was cancelled in 2010. As per the terms and conditions agreed between the parties at the time of booking, on failure to sign the agreement, 50% of the advance amount would be forfeited.

The commission observed that there is an undisputed fact that there is deficiency in services on the part of the opposite parties (KCCI) in not responding to the legitimate request made by the complainant for effecting certain amendments in the draft agreement. On evaluating the entire evidence, it could be seen that the entire fault was on the part of the opposite parties “in cancelling the allotment made in favour of the complainant in an arbitrary manner.”

“The complainant had to face much inconvenience and hardship on account of the arbitrary cancellation of the allotment of the studio apartment booked in his favour. Therefore, the complainant is entitled to get a reasonable amount as compensation,” the commission added.

It also ordered the KCCI to refund ₹5 lakh with 8% interest.