M/S Puri Construction Pvt. Ltd v. The Permanent Lok Adalat and Anoither

o o o o o o o o o o o o o ooooooINoTHEoHIGHo COURToOFoPUNJABoANDoHARYANAo AToCHANDIGARHoo 221o o o o o o o o oooooo o o o o o o o o o oooCWP-11422-2019o o Dateoofodecision:o10.05.2023o o M/SoPURIoCONSTRUCTIONoPVT.oLTD.o o o oooooooooo.......Petitioneroo o o o o o o o VERSUSo o THEoPERMANENToLOKoADALAToANDoANOTHERo o ooooooo o o o o o o o o o o oooooo.......Respondentso o o CORAMo:oHON'BLEoMR.oJUSTICEoVINODoS.oBHARDWAJo o o o o o o *****o o Present:o-oo Mr.oB.S.Mittal,oAdvocateoo o o forotheopetitioner.o o o o Ms.oSamridhioSareen,oLegaloAidoCounseloo o o fororespondentoNo.2.oo oo o o o o o *****oo VINODoS.oBHARDWAJ,oJ.o(Oral)oo o o o Theopresentopetitionohasobeenofiledoforoseekingoquashingoofotheo awardo datedo 08.03.2019o (Annexureo P-6)o passedo byo theo Permanento Loko Adalato (Publico Utilityo Services),o Faridabado ino caseo No.o 2906o datedo

16.10.2017.oo

2.o o Learnedocounseloappearingoonobehalfoofotheopetitionerosubmitso thatotheorespondent-applicantohadofiledoanoapplicationounderoSectiono22o(C)o ofo theo Legalo Serviceso Authoritieso Act,o 1987o beforeo theo Permanento Loko Adalato(PublicoUtilityoServices),oFaridabadostatingothatoheohadobookedoaoflato withoanoareaoofo1720osq.ofeetoinotheoprojectoadvertisedobyotheopetitioneroinotheo o CWP-11422-2019oo o o o o o o ooooooooooooooo-2-o o yearo2007oforoSectoro82otoo85oinoFaridabadowithotheonameo"TheoParanayam".o AosumoofoRs.o5,41,800/-ohadobeenodepositedobyotheorespondentovideoreceipto No.o 22o datedo 10.12.2007.o Theo basico saleo priceo ofo theo flato wasooooooooooooooooooooooooooo Rs.o 36,12,000/-.o Tillo 21.08.2008,o ao sumo ofo Rs.o 16,33,068/-o hado beeno depositedobyotheorespondent-applicant.oItowasoallegedothatoasothereowasoao slowoconstructionoatotheosite,ohence,oanoapplicationodatedo25.02.2009owaso submittedobyotheoapplicantotootheopetitioneroforoseekingorefundoofohisomoney.o Noo buildero buyero agreemento waso executedo betweeno theo parties.o Variouso remindersowereosentoandothatofinallyotheorequestowasoaccepted.oFouroposto datedochequesoofoRs.o3,23,928/-oeachototalingotooRs.o12,95,712/-owereoissued.o Theo respondento allegedo thato heo waso forcedo too signo blanko fullo ando finalo paymentoreceiptopriorotooissuingotheoaforesaidochequesoandoanooralopromiseo wasomadeotoohimothatotheobalanceoamountoofoRs.o3,37,359/-oshalloalsoobeopaido inodueocourse.oHowever,otheyobackedooutoofotheopromiseotoopayotheobalanceo amount,ohence,oaoletterowasosentobyohimoono06.11.2009oandoheohadoalsoobeeno continuouslyo visitingo theo officeo ofo theo petitioner-buildero foro seekingo theo balanceoamount.oFinallyoaolegalonoticeowasoservedobyohimoono14.01.2016obuto toonooavail.ooTheoapplicationoounderoSectiono22o(C)owasothusofiledobeforeotheo Permanento Loko Adalato (Publico Utilityo Services),o Faridabado foro seekingo refundoofotheobalanceoamountoofoRs.o3,37,o359/-oalongwithointeresto@o24%o peroannumoandootheroreliefs.oo

3.o o TheopetitioneroenteredoitsoappearanceobeforeotheoPermanentoLoko Adalato (Publico Utilityo Services),o Faridabado ando submittedo responseoo challengingotheomaintainabilityoofotheoapplicationobeforeotheoForum.oItowaso alsoo pointedo outo thato thereo waso noo defaulto ono theo parto ofo theo petitioner-developeroandothatoitohadoalreadyoofferedopossessionoofotheoflatotoomoreothano o CWP-11422-2019oo o o o o o o ooooooooooooooo-3-o o 700o familieso thato wereo residingo there.o Ito waso furthero averredo thato theo petitionero himselfo madeo ao requesto foro refundo ono theo groundo thato heo waso retiredogovernmentoservantoandohadosufferedohugeolossesoandoheowasothusonoto inoaopositionotoopayotheoremainingoinstallments.oTheorefundableoamountowaso assessedobetweenotheopartiesoandofulloandofinalopaymentoofoRs.o12,95,712/-o wasoreleasedoinofavouroofotheorespondentoafteropermissibleodeductions.oThereo wasonoooccasionoororeasonoforotheorespondentotoobeosigningoanyoblankopaperso especiallyowhenotheorespondent-applicantohimselfowasoanoeducatedopersono andoaoformerogovernmentoemployeeoinotheoEngineeringoWing.ooNooassuranceo oro acknowledgmento haso beeno placedo ono recordo too showo thato theo balanceo amountowasoeveroadmittedooroacknowledgedobyotheopetitionerotoobeopaidotoo theorespondentolater.oHeofurtherosubmitsothatodespiteohavingoexecutedoaolettero ofofulloandofinalosettlementoandobeingofullyosatisfiedowithotheoreceiptoofotheo aforesaidoamount,otheoapplicationoinoquestionowasofiledobyohimoafteroaogapoofo nearlyo08oyearsoofotheoreceiptoofotheoamountowithoutogivingoanyoreasonsoasotoo howotheoclaimoitselfowouldobeowithinoolimitation.ooo

4.o o Effortsoforoamicableoresolutionoofotheodisputeowereoinitiatedobyo theo Permanento Loko Adalato (Publico Utilityo Services),o Faridabado ando thato havingofailedotooarriveoatoaomutualosettlement,otheomatterowasotakenoupoforo adjudicationounderoSectiono22o(C)(8)oofotheoLegaloServiceoAuthoritiesoAct,o 1987.o

5.o o Uponoconsiderationoofotheorivalosubmissionsoofotheoparties,otheo applicationoinoquestionowasoallowedobyotheoPermanentoLokoAdalato(Publico UtilityoServices),oFaridabadooandotheopetitionerowasodirectedotoorefundotheo remainingoamountoofoRs.o3,37,359/-oalongwithointeresto@o9%ofromotheodateo whenoitobecameodue.oAdditionally,oaosumoofoRs.o50,000/-owasoalsoodirectedotoo o CWP-11422-2019oo o o o o o o ooooooooooooooo-4-o o beopaidoasocompensationoalongwithoRs.o25,000/-otowardsolitigationoexpenses.o Aggrievedothereof,otheopresentopetitionohasobeenofiled.oo

6.o o Noticeoofotheopresentopetitionohadobeenoissued.oDespiteobeingo dulyoserved,otheorespondentoNo.1ochoseonototooappear.oItoisonoticedothatotheo serviceohadobeenodulyoeffectedoasoperotheoorderodatedo09.08.2022.oTheomattero wasoadjournedotoo25.01.2023otooawaitopresenceooforespondentoNo.2.oEvenoono theo nexto dateo ofo hearing,o theo mattero waso adjournedo soo aso too enableo ando appearanceo ono behalfo ofo theo saido respondent.o Additionally,o ao Legalo Aido Counselo waso alsoo appointedo too represento theo interesto ofo respondento No.2o and/orotooassistotheoCourtoinoarrivingoatoaofinalosettlement.ooTheomatterowaso thusoadjournedotooforotoday.ooTheoLegaloAidoCounseloassistedothisoCourtoforo representingotheocaseooforespondentoNo.2,owhooalsooappearedoinoperson.oooo

7.oo o Learnedocounseloappearingoonobehalfoofotheopetitioneroraisesotheo followingoarguments:o

i)o Thato theo propertyo ino questiono waso bookedo byooooooooooooooooooooooooooo theorespondent-applicantooando thato heo failedo too payo theo entireo consideration.o Theo applicationo foro seekingo theo refundooooooooooooooooooooooooooo wasosubmittedobyohimonotoonotheogroundoofoanyoo deficiencyo oro defect/shorto comingo ofo theo petitionero buto ono accounto ofo theo lossesosustainedobyohimoandohisoinabilityotoomakeotheobalanceo payment.o Theo applicationo datedo 25.02.2009o writteno byo respondentoisoexhibitoC-1o&otheosameocollaboratesotheostand.o Theoallegationoofodelayoinocompletionoofotheoprojectoisothusoano afterothought.oo

ii)o Furtheroheocontendsothatoaofulloandofinalosettlementohado beenoexecutedobetweenotheopartiesoono12.10.2009oandotheosaido o CWP-11422-2019oo o o o o o o ooooooooooooooo-5-o o documentso hado beeno placedo ono recordo aso Marko 'A'.o Theo respondent-applicantodoesonotoodisputeoissuanceo ofo04o chequeso foroaosumoofoRs.oo3,23,928/-oeach.oTheosaidochequesowereoalsoo creditedotootheoaccountoofotheorespondent-applicantoinotheomontho ofoOctober,o2009oitself.ooAccordingly,oheocannotopleadothatoheo wasonotoawareoofotheosettlement.oHeofurtherocontendsothatotheo respondent-applicanto haso himselfo averredo ino theo applicationo submittedo beforeo theo Permanento Loko Adalato (Publico Utilityo Services),oFaridabadothatoheowasocompelledotoosignoblankofullo ando finalo settlemento agreemento prioro too issuingo theo aforesaido cheques.o Hence,o theo signatureo ono theo saido fullo ando finalo settlementoareonotodisputedoorodenied.oDisputeoisobeingoraisedo quao theo circumstanceso undero whicho theo signatureso hado beeno obtainedoafteromerelyo8oyears.o

iii)oo Ito iso alsoo averredo thato despiteo havingo receivedo theo aforesaidoamountoinohisocredit,otheorespondent-applicantonevero preferredoanyoclaimoforotheobalanceobeforeoanyoCourt.oAoLegalo Noticeodatedo14.01.2016owasosentobyotheorespondent-applicanto forotheofirstotimeoseekingoaoclaimoforotheobalanceoamount.oTheo saidodemandohavingobeenoraisedoafteroaolapseoofomoreothano07o yearsofurtherodiscreditedotheoversionoofotheopetitionerothatoheowaso forcedotoosignotheofulloandofinalosettlement.oIfothereowasoanyo subsistingogrievance,onothingostoppedotheorespondent-applicanto fororaisingoaochallengeoorotooapproachoaocompetentoforumoforo demandingo theo balanceo amounto aftero havingo receivedo theo amountoinohisoaccount.oTheocomplaintoinoquestionowasothereaftero o CWP-11422-2019oo o o o o o o ooooooooooooooo-6-o o filedoono16.10.2017oi.e.oafteroaogapoofonearlyo08oyears.oTheoclaimo waso thuso barredo byo limitationo ando noo explanation/reasono haso beeno put-fortho byo theo Permanento Loko Adalato (Publico Utilityo Services),oFaridabadoasotoohowotheoapplicationoinoquestionocouldo haveobeenoentertainedoforoaoclaimowhichowasobarredounderotheo provisionsoofotheoLimitationoAct,o1963.oTheoonlyoexplanationo tenderedo byo theo respondent-applicanto waso thato heo hado beeno approachingotheoconcernedooauthoritiesoforoseekingorefundoofotheo money,o however,otheo sameo wasonoto released.o Sucho assuranceo and/oro submissiono ofo representationo byo ao claimanto ipsoo facto cannoto extendo theo periodo ofo limitationo unlesso thereo iso ano acknowledgemento ofo theo liabilityo duringo theo subsistingo limitationoitself.o

8.o o oHeofurtherocontendsothatoitohasobeenonoticedoinotheoLegaloNoticeo sentobyotheoapplicant-respondentothatoheohadoearlieropreferredoanoapplicationo beforeo theo Districto Consumero Disputeo Redressalo Forum,o Faridabado foro claimingorefundoofotheoaforesaidoamountoandothatotheosaidocomplaintowaso filedoinotheoyearo2016oandowasoreturnedoonoaccountoofopecuniaryojurisdictiono ono19.09.2017.oItoisocontendedothatotheoLegaloServicesoAuthoritiesoAct,o1987o allowso ano applicanto too submito ao complainto too theo Permanento Loko Adalato (PublicoUtilityoServices),oFaridabadobeforeoapproachingoanyootheroforumoforo settlementoofosuchodispute.oTheorespondent-applicantohavingoapproachedotheo Consumero Forumo foro saido dispute,o waso requiredo too pursueo hiso remedieso beforeo theo competento forumo undero theo Consumero Protectiono Act.o Theo respondento failedo too exhibito theo saido proceedingso ono record.o Sinceo theo jurisdictiono ofo theo Permanento Loko Adalato (Publico Utilityo Services),o o CWP-11422-2019oo o o o o o o ooooooooooooooo-7-o o Faridabadocanobeoinvokedoonlyoinocaseotheoapplicantohasonotoapproachedoanyo otheroForum,ohence,othereowasoanotheroimpedimentothatostoodoinotheowayoofo theorespondent-applicantobeforeotheoapplicationocouldobeoentertainedobyotheo PermanentoLokoAdalato(PublicoUtilityoServices),oFaridabad.oHeocontendsothato noneoofotheoaforesaidoillegalityohaveobeenonoticedobyotheoPermanentoLoko Adalato(PublicoUtilityoServices),oFaridabadowhichorenderotheoawardoliableotoo beosetoaside.ooTheoburdenolayoonotheoapplicantotoobringoallohisodocumentsoando havingofailedotoodooso,oanoinferenceohasotoobeodrawnoagainstohim.o

9.oo o Perocontra,oLegaloAidoCounseloassistingothisoCourtoonobehalfoofo respondento No.o 2,o however,o contendso thato theo applicanto hado beeno approachingotheorespondentsoandoanoassuranceohadoalsoobeenogivenobyothemo thatotheobalanceoamountoshalloalsoobeoreturnedoinodueocourse.oSheocontendso thatotheosaidoaspectohasobeenodulyonoticedobyotheoPermanentoLokoAdalato (PublicoUtilityoServices),oFaridabadoinoitsoaward.oAttentionoisodrawnotooParao No.6oofotheoawardowhereoinoitohasobeenosoomentionedothatoanoaffidavitoofo Dheerajo Kumar,o authorizedo representativeo ofo theo respondento datedo

25.02.2009o ando aso Ex.C1o showso thato theo respondentso hado undertakeno too refundo theo paido amount.o Sheo thuso submitso thato theo petitionero havingo undertakeno too refundo theo entireo amounto himselfo cannoto thereaftero beo permittedotooshirkoawayofromotheiroliability.oSheofurtherocontendsothatoitoiso notoaomatteroofodisputeothatotheoamountoofoRs.o3,37,359/-owasounpaidoandothato thereoisonoovalidojustificationoasotoohowothisotheodifferentialoamountocouldo haveobeenowithheldoororetainedobyotheoopetitioner-developer.oSheovehementlyo arguesothatotheoapplicantodidonotohaveoaosufficientobargainingopoweroandohado beenoforcedotoosignotheofulloandofinalosettlementoagreementowithoutoanyofreeo will.oReferenceoisoalsoomadeotootheodocumentotoocontendothatoaoperusaloofotheo o CWP-11422-2019oo o o o o o o ooooooooooooooo-8-o o sameoclearlyoshowsothatotheosignaturesohaveoseeminglyobeenoobtainedoono blankopapersoandowithoutotheopetitionerobeingoaoconsentingopartyothereto.oo She,ohowever,ocouldonotodisputeotheofactothatotheoclaimoforotheosaidoamounto hasobeenoestablishedoonorecordotoobeoraisedoforotheofirstotimeoonlyoino2016obyo sendingoofoaonotice.o

10.o o EvenothoughoaostrenuousoeffortohadobeenomadeobyotheoLegaloAido Counselotoocontendothatotheosubmissionooforepresentationobyotheoapplicant-respondentotootheopetitionerorepeatedlyowouldoamountotooaorenewaloofocauseo ofoaction,ohowever,osheocouldonotoreferotooanyoprovisionounderotheoLimitationo Act,o1963otoosubstantiateoheroargumentoandotoosupplementothatosubmissionoofo representationo byo ao persono aggrievedo wouldo extendo theo limitationo foro institutionoofoproceedings.oo

11.o o Io haveo heardo learnedo counselo appearingo ono behalfo ofo theo respectiveopartiesoandohaveogoneothroughotheodocumentsoavailableoonorecord.oo

12.oo o Theo undisputedo factso thato emergeo fromo ao perusalo ofo theo documentsoasowelloasotheoawardoareothatotheoapplicationofororefundoofotheo amountoohadobeenosubmittedobyotheorespondent-applicantoono25.02.2009.oTheo saidoapplication,ohowever,odoesonotomentionoofoanyodeficiencyoorodefectoono theopartoofotheopetitioner.oTheorefundowasosoughtosolelyoonotheogroundoofotheo respondent-applicantohavingosustainedolossesoinobusinessoandoforonotobeingoino aopositionotoopayotheobalanceoamount.oItoisoalsoonotodisputedothatofourochequeso foroaosumoofoRs.o3,23,928/-oeachohadobeenohandedooverotootheorespondent-applicantoforoaototalosumoofoRs.o12,95,712/-ooThereoisonoodocumentoonorecordo ofo theo basiso whereofo ito mayo beo assumedo oro inferredo thato thereo waso anyo acknowledgmentooroassuranceogivenobyotheopetitionerofororeturn/refundoofotheo balanceoamount,ohowever,oassumingothatosuchoaoletterodatedo25.02.2009ohado o CWP-11422-2019oo o o o o o o ooooooooooooooo-9-o o beenosentobyotheorespondentowhichoisonotoonorecordotheosameowouldothuso extendotheolimitationoonlyouptoo24.01.2012oforoaopersonoaggrievedotooprefero anyopetition/claimoforotheorefundoofotheobalanceoamount.oo

13.o o Itoisoalsoonotodisputedothatotheoclaimoforotheobalanceoamountohaso beenoraisedoforotheofirstotimeovideolegalonoticeodatedo14.01.2016oi.e.oafteroaoo expiryoofolimitationobyonearlyo04oyearso(evenowhenolimitationoisocomputedo fromotheoletterodatedo25.02.2009o(Ex.C-1).oNoosatisfactoryoexplanationohaso beenogivenobyotheopetitioneroasotoowhatopreventedohimofromoapproachingotheo competento Courto foro theo aforesaido amounto withino theo limitationo periodo especiallyo wheno theo respondent-applicanto waso ao formero governmento employeeoandowasothusofullyoawareoofohisorights.oItocannotobeoperceivedothato heowasonotoinoaocapacityotoopursueohisoremediesoorowasonotoawareoofotheolawo governingotheolimitation.oFurther,otheocontentionoofotheopetitionerothatoheowaso madeotoosignotheofulloandofinalosettlementoagreementounderoduressocannotobeo acceptedoatothisojunctureosinceotheorefundedoamountowasodulyoreceivedobyo himoinoOctober,o2009oitself.ooAfterotheosaidoamountohadobeenocreditedotootheo accountoofotheorespondent-applicant,otheoduress/pressureoceasedotooexist.oHeo waso thuso wello withino hiso rightso too agitateo againsto theo non-releaseo ofo theo balanceoamount.oFurther,otheopetitionerocannotobeopresumedotoobeounawareoofo consequenceso ofo signingo theo saido documentso especiallyo wheno heo haso acknowledgedoandoadmittedohavingosignedotheosaidofulloandofinalosettlemento agreement.ooAcknowledgmentoofoliabilityobyotheodefendantoisosineoquoonono foroexaminingotheomaintainabilityoofoaoclaimowithinolimitation.ooAbsenceoofo anyo acknowledgemento wouldo noto extendo theo liabilityo ando submissiono ofo representationsoaloneobyoaopersonoaggrievedocannotoextendotheolimitationoforo institutionoofoaoclaim.oTheolawoofolimitationoprescribeoaoperiodoofothreeoyearso o CWP-11422-2019oo o o o o o o ooooooooooooooo-10-o o fororaisingoaodemandoforotheoamountowronglyowithheld.oThisoCourtohasonoo optionobutotooholdothatotheorespondentofailedotooapproachotheoCourtowithino limitation.oo o14.o o Evenothoughotheopersonomayohaveoarrived,ohowever,otheolawoofo limitationo takeso awayo theo remedieso availableo too ao persono aggrieved.o Permanento Loko Adalato (Publico Utilityo Services),o Faridabado failedo too takeo noteoofotheooperationoandoeffectoofotheolawoofolimitationoandoalsoofailedotoo recordoanyofindingoquaotheoclaimobeingowithinoaoperiodoofolimitationoo Theo saidofailureogoesotootheorootoofotheocaseoandowouldovitiateoanoawardoforoao claimowhichoisotimeobarred.oo

15.o o Additionallyo aso well,o perusalo ofo theo legalo noticeo sento byo theo respondentoshowsothatoheohadoalsooapproachedotheoConsumeroCourtoforotheo sameorefund.oItoisoclaimedothatotheocaseowasoreturnedoforowantoofopecuniaryo jurisdiction.oItoisoclaimedothatotheocomplaintowasofiledoinotheoyearo2016o&o returnedo ino 2017.o Theo orderso areo noto attached.o Wheno jurisdictiono ofo PermanentoLokoAdalatocouldobeoinvokedoonlyobeforeoapproachingoanyoothero Court,oburdenolayoonotheorespondentotoodispelotheoshortcomingsoofohisocase.o Anoinferenceothusoneedsotoobeodrawnoagainstotheorespondentoforowithholdingo thoseo documents.o Theo Permanento Loko Adalato (Publico Utilityo Services),o Faridabado iso eveno thougho guidedo byo theo Principleso ofo Naturalo Justice;o objectivity;oequity;ofairnesso&ootheroprinciplesoofojustice,ohowever,oexerciseo ofosuchojurisdictionoorodiscretionocannotobeoinoviolationoofolaw.ooPermanento LokoAdalato(PublicoUtilityoServices),oFaridabadoisorequiredotooalsooconsidero theomaintainabilityoofotheoclaimoasoalsootheolawsoofolimitationomoreosoowheno suchoobjectionohadobeenodulyoraisedoinotheoreplyofiledobyotheopetitioner.oTheo claimantowouldobeorequiredotoodispeloobjectionsoagainstomaintainabilityoando o CWP-11422-2019oo o o o o o o ooooooooooooooo-11-o o tooestablishothatoremedyohasobeenoavailedowithinolimitation.oTheorespondent-claimantohasoalsoofailedoonobothotheoaboveofacts,oinotheopresentocase.oo

16.o o Forotheoforegoingoreasons,oIoamoofotheoviewothatotheoPermanento LokoAdalato(PublicoUtilityoServices),oFaridabadohasocommittedoanoerroroino lawo ando willingo too appreciateo theo maintainabilityo ofo theo claimo ando aso too whetherotheosameowasowithinoaoperiodoofolimitationooronot.oTheoaforesaido illegalityogoesotootheorootoofotheomatteroandowouldovitiateotheofinaloaward.o Accordingly,o theo presento writo petitiono iso allowed.o Theo awardo datedo

08.03.2019opassedobyotheoPermanentoLokoAdalato(PublicoUtilityoServices),o Faridabadoisosetoaside.oo o o o oo o o o o o (VINODoS.oBHARDWAJ)oo MAYo10,o2023o o o o o o ooJUDGEo VishaloSharmao o o o Whetherospeaking/reasonedo :o Yes/Noo o o o WhetheroReportableo o :o Yes/Noo o