Holding

The Consumer Protection Act and the RERA Act provide concurrent, non‑exclusive remedies, and the Commission is empowered under Section 14 to order a refund with interest payable from the dates of each deposit, rendering the one‑sided agreement clauses an unfair trade practice.

Summary

The developer Experion Developers failed to deliver possession of an apartment to the consumer, Sushma Ashok Shiroor, within the 42‑month period stipulated in the Apartment Buyer’s Agreement. The consumer filed a complaint before the National Consumer Disputes Redressal Commission, which ordered the developer to refund the purchase price with 9% interest, holding the agreement clauses to be one‑sided and an unfair trade practice. The developer appealed, arguing that the RERA Act should govern the dispute and that the interest should be calculated from the estimated possession date. The Supreme Court held that the Consumer Protection Act and the RERA Act are concurrent remedies and that the Commission was correctly empowered under Section 14 to order a refund with interest payable from the dates of each deposit. The Court also modified the interest award, directing it to be payable from the dates of deposit, and dismissed the developer’s appeal while allowing the consumer’s appeal in part.

Issues considered

Whether the one‑sided clauses in the Apartment Buyer’s Agreement constitute an unfair trade practice under the Consumer Protection Act.
Whether the Consumer Protection Act, 1986 empowers the Commission to direct a refund of the purchase amount with interest under Section 14.
Whether the remedies under the RERA Act, 2016 bar or supersede the remedies available under the Consumer Protection Act.
Whether the interest on the refunded amount should be calculated from the date of each deposit or from the last deposit/estimated possession date.

Legislation cited

Consumer Protection Act, 1986s. 14, s. 23, s. 2(g), s. 2(r)
Insolvency and Bankruptcy Code, 2016
Interest Act, 1978
Real Estate (Regulation and Development) Act, 2016s. 18

Subjects

Consumer Protection ActRERAunfair trade practicerefundinterestone‑sided contractapartment buyer agreementdeficiency of serviceconcurrent remediesjurisdiction

Judgment

590 SUPREME COURT
[2022]REPORTS
5 S.C.R. 590 [2022] 5 S.C.R.

A EXPERION DEVELOPERS PVT. LTD.
v.
SUSHMA ASHOK SHIROOR
(Civil Appeal No. 6044 of 2019)
B APRIL 07, 2022
[UDAY UMESH LALIT, S. RAVINDRA BHAT AND
PAMIDIGHANTAM SRI NARASIMHA, JJ.]
Consumer Protection Act, 1986 – ss. 23, 14 – Failure on part
of developer to deliver possession of apartment to the consumer
C
within the time stipulated as per the Apartment Buyers Agreement –
The consumer, against such failure, approached the National
Consumer Disputes Redressal Commission – Commission directed
the developer to refund purchase amount interest @ 9% p.a. to the
Consumer – Aggrieved developer filed instant appeal – Held: The
D Commission created under the Consumer Protection Act has the
power to direct refund of the purchase amount along with interest
under s.14 of the Act and was right in holding that the clauses of
the agreement are one-sided and that the Consumer is not bound to
accept the possession of the apartment and can seek refund of the
amount deposited by her with interest – Further the Apartment
E
Buyer’s Agreement which are found to be one-sided are oppressive,
constituting unfair trade practice and such terms of the Agreement
cannot be enforced – Order of Commission upheld – Real Estate
(Regulation and Development) Act, 2016 – s.18 – Contract – One
sided contract.
F
Consumer Protection Act, 1986 – Real Estate (Regulation and
Development) Act, 2016 – Harmonious Construction – The
Consumer Protection Act and the Real Estate (Regulation and
Development) Act neither exclude nor contradict each other and
they must be read harmoniously to subserve their common purpose
G and hence one Act does not bar the remedy available under the
other Act – When Statutes provide more than one judicial fora for
effectuating a right or to enforce a duty-obligation, it is a feature
of remedial choices offered by the State for an effective access to
justice and hence there has to be a harmonious construction of
statutes provisioning plurality of remedies – Interpretation of statutes.
H
590
EXPERION DEVELOPERS PVT. LTD. v. SUSHMA ASHOK SHIROOR 591

Consumer Protection Act, 1986: s.14 – Power under, scope – A
Power to direct refund of the amount and to compensate a consumer
for the deficiency in not delivering the apartment as per the terms
of Agreement is within the jurisdiction of the Consumer Courts –
Under s.14 of the Act, if the Commission is satisfied that any of the
allegations contained in the complaint about the services are proved,
B
it shall issue an order to the opposite party directing him to, return
to the complainant the price or as the case may be, the charges
paid by the complainant – ‘Deficiency’ is defined under s.2(g) to
include any shortcoming or inadequacy in performance which has
been undertaken by a person in pursuance of a contract or
otherwise relating to any service – Therefore Commission is C
empowered to direct refund of the price or the charges paid by the
consumer
Dismissing the appeal filed by the Developer and partly
allowing the appeal filed by the Consumer, the Court
HELD: 1. On the question of reckoning the date for handing D
over of possession of the apartment, the Commission recorded
the fact admitted by the Developer in Para 2 of its reply that “the
trigger date for clause 10.1 is 26.12.2012, which is the date of
execution of the apartment buyer’s agreement”. The Commission
calculated 42 months from this period, which turns out to be E
26.06.2016. Further, adding the grace period of 180 days, the
time for delivery would expire on 26.12.2016. It is again an
admitted fact that the occupancy certificate was obtained only on
23.07.2018 and notice for possession was issued to the Consumer
on 24.07.2018. Given the factual position and having examined
the terms of the Agreement, the Commission found the judgment F
of this Court in Pioneer Urban Land and Infrastructure Ltd v
Govindan Raghvan is a relevant and conclusive precedent. The
principle laid down in Pioneer ’s case has been followed
consistently in many cases where the terms of the Apartment
Buyer’s Agreement were found to be one-sided and entirely G
loaded in favour of the Developer, and against the allottee at every
step. Therefore the Commission was correct in its approach in
holding that the clauses of the agreement are one-sided and that
the Consumer is not bound to accept the possession of the

H
592 SUPREME COURT REPORTS [2022] 5 S.C.R.

A apartment and can seek refund of the amount deposited by her
with interest. [Paras 8.1, 9.1, 10][598-E-G; 600-B-C; 602-B]
Pioneer Urban Land and Infrastructure Ltd. v.
Govindan Raghvan (2019) 5 SCC 725 : [2019]
5 SCR 1169 – relied on.
B 2. It is crystal clear that the Consumer Protection Act and
the RERA Act neither exclude nor contradict each other. In fact,
this Court has held that they are concurrent remedies operating
independently and without primacy. When Statutes provisioning
judicial remedies fall for construction, the choice of the
C interpretative outcomes should also depend on the constitutional
duty to create effective judicial remedies in furtherance of access
to justice. A meaningful interpretation that effectuates access to
justice is a constitutional imperative and it is this duty that must
inform the interpretative criterion. When Statutes provide more
than one judicial fora for effectuating a right or to enforce a duty-
D obligation, it is a feature of remedial choices offered by the State
for an effective access to justice. Therefore, while interpreting
statutes provisioning plurality of remedies, it is necessary for
Courts to harmonise the provisions in a constructive manner
[Paras 14.1, 14.2][606-E-G]
E 3. The power to direct refund of the amount and to
compensate a consumer for the deficiency in not delivering the
apartment as per the terms of Agreement is within the jurisdiction
of the Consumer Courts. Under Section 14 of the Consumer
Protection Act, if the Commission is satisfied…that any of the
F allegations contained in the complaint about the services are proved,
it shall issue an order to the opposite party directing him to, return
to the complainant the price or as the case may be, the charges
paid by the complainant. ‘Deficiency’ is defined under Section
2(g) to include any shortcoming or inadequacy in performance
which has been undertaken by a person in pursuance of a contract
G or otherwise relating to any service. It is clear from the statutory
position that the Commission is empowered to direct refund of
the price or the charges paid by the consumer. A consumer
invoking the jurisdiction of the Commission can seek such reliefs
as he/she considers appropriate. A consumer can pray for refund
H
EXPERION DEVELOPERS PVT. LTD. v. SUSHMA ASHOK SHIROOR 593

of the money with interest and compensation. The consumer A
could also ask for possession of the apartment with compensation.
The consumer can also make a prayer for both in the alternative.
If a consumer prays for refund of the amount, without an alternative
prayer, the Commission will recognize such a right and grant it,
of course subject to the merits of the case. If a consumer seeks
B
alternative reliefs, the Commission will consider the matter in
the facts and circumstances of the case and will pass appropriate
orders as justice demands. This position is similar to the mandate
under Section 18 of the RERA Act. Hence the Commission has
correctly exercises its power and jurisdiction in passing the above
directions for refund of the amount with interest. [Paras 15, 16, C
19][607-F-G; 608-A-D; 609-A; 610-C]
4. For the interest payable on the amount deposited to be
restitutionary and also compensatory, interest has to be paid from
the date of the deposit of the amounts. The Commission in the
order impugned has granted interest from the date of last deposit. D
It does not amount to restitution. Following the decision in DLF
Homes Panchkula Pvt Ltd v. DS Dhanda and in modification of
the direction issued by the Commission, it is directed that the
interest on the refund shall be payable from the dates of deposit.
Therefore, the appeal filed by purchaser deserves to be partly
allowed. The interests shall be payable from the dates of such E
deposits. [Para 22.1][611-F-G]
DLF Homes Panchkula Pvt. Ltd. v. DS Dhanda and Ors.
(2020) 16 SCC 318 : [2019] 7 SCR 1061; Wing
Commander Arifur Rahman Khan and Aleya Sultana &
Ors. v. DLF Southern Homes Private Limited (2020) 16 F
SCC 512 : [2020] 9 SCR 136; NBCC (India) Ltd. v.
Shri Ram Trivedi (2021) 5 SCC 273; DLF Home
Developers Ltd. v. Capital Greens Flat Buyers
Association & Ors. (2021) 5 SCC 537; IREO Grace
Realtech (P) Ltd. v. Abhishek Khanna & Ors. (2021) 3 G
SCC 241; Imperia Structures Ltd v. Anil Patni & Anr.
(2020) 10 SCC 783; Pioneer Urban Land Infrastructure
Ltd. & Anr. v. Union of India & Ors. (2019) 8 SCC 416
: [2019] 10 SCR 381 – relied on.

H
594 SUPREME COURT REPORTS [2022] 5 S.C.R.

A Case Law Reference
[2019] 5 SCR 1169 relied on Para 5.1
[2020] 9 SCR 136 relied on Para 9.2
(2021) 5 SCC 273 relied on Para 9.3
B (2021) 5 SCC 537 relied on Para 9.3
(2021) 3 SCC 241 relied on Para 9.4
(2020) 10 SCC 783 relied on Para 12
[2019] 10 SCR 381 relied on Para 14.3
C
[2019] 7 SCR 1061 relied on Para 22.1
CIVIL APPELLATE JURISDICTION: Civil Appeal No. 6044
of 2019.
From the Judgment and Order dated 19.06.2019 of the National
D Consumer Disputes Redressal Commission, New Delhi in Consumer
Complaint No.2648 of 2017.
With
Civil Appeal No.7149 of 2019.
Jitendra Chaudhary, Ms. Shilpa Chohan, Dr. Pratyush Nandan,
E
Rajesh Singh, Gagan Gupta, Advs. for the appearing parties.
The Judgment of the Court was delivered by
PAMIDIGHANTAM SRI NARASIMHA, J.
1. These appeals under Section 23 of the Consumer Protection
F Act, 19861, arise out of the judgment dated 19.06.2019 passed by the
National Consumer Disputes Redressal Commission2. The Commission
directed the Appellant- Developer to refund an amount of Rs. 2,06,41,379
with interest @ 9% p.a. to the Respondent-Consumer3 for its failure to
deliver possession of the apartment within the time stipulated as per the
G Apartment Buyers Agreement. In these appeals, we have upheld the
Commission’s order insofar as it directed the Developer to refund the
amounts paid by the Consumer with interest for the unjustifiable delay in
1
hereinafter referred to as the “Act”.
2
hereinafter referred to as “Commission”.
3
H hereinafter referred to as the “Consumer”.
EXPERION DEVELOPERS PVT. LTD. v. SUSHMA ASHOK SHIROOR 595
[PAMIDIGHANTAM SRI NARASIMHA, J.]

delivering the apartment. On law, we have considered the interplay A
between the judicial remedies under the Act and the Real Estate
(Regulation and Development) Act, 2016 and have explained the remedial
choices of a consumer under these statutes. We have held that the
Commission created under the Act has the power to direct refund under
Section 14 of the Act. We conclude that the Act and the RERA Act
B
neither exclude nor contradict each other and they must be read
harmoniously to subserve their common purpose.
2. The brief facts of the case are that the Developer, M/s Experion
Developers Private Ltd., is the promoter of apartment units, Windchants,
in Sector 112, Gurgaon, Haryana. The Consumer booked an apartment
measuring 3525 sq. ft. for a total consideration of Rs. 2,36,15,726/- in C
the Windchants and agreed for construction linked payment plan, which
led to the execution of the Apartment Buyer’s Agreement dated
26.12.2012. As per Clause 10.1 of the Agreement, possession was to be
given within 42 months from the date of approval of the building plan or
the date of receipt of the approval of the Ministry of Environment and D
Forests, Government of India for the Project or date of the execution of
the agreement whichever is later. Clause 13 of the Agreement provided
for Delay Compensation. Under this clause, if the Developer did not
offer possession within the period stipulated in the Agreement, it shall
pay liquidated damages of Rs. 7.50 per square foot per month till
possession is offered to the Consumer. E

3.1 The Consumer approached the National Disputes Redressal
Commission by filing an original complaint being, Consumer Case No.
2648/2017, alleging that he has paid a total consideration of Rs.
2,06,41,379/- and possession was not granted even till the filing of the
complaint. He, therefore, sought a refund of Rs. 2,06,41,379/- along with F
interest @ 24% p.a.
3.2 The Developer filed its Written Statement before the
Commission stating that though the 42 months period expires on 26-6-
20164, the purchaser will only be entitled to delay compensation under
Clause 13, for a sum of Rs. 4,54,052/-. Justification for the delay is given G
by pleading that the Occupation Certificate for Phase-I of the project
4
The Commission in impugned order has recorded the statement of the Developer in
the reply dated 16.02.2018 raising preliminary objections where it admitted that the
“The trigger date for clause 10.1 is 26.12.2012 which is the date of execution of the
apartment buyer’s agreement.” H
596 SUPREME COURT REPORTS [2022] 5 S.C.R.

A had already been obtained on 06.12.2017, and application for Occupation
Certificate for Phase-2, had already been made. In the affidavit of
evidence, the Developer contended that it secured the Occupation
Certificate on 23.07.2018 and a notice of possession was issued to the
Consumer on 24.07.2018. It was claimed that since possession can be
handed over, the complaint must be dismissed.
B
4. The Commission, in its judgment dated 19.06.2019, allowed the
complaint after referring to Clause 10 (relating to the project completion
period), Clause 11 (relating to the possession and conveyance of the
apartment), as well as Clause 13 (relating to delay in possession). The
Commission found that the agreement is one-sided, heavily loaded against
C the allottee and entirely in favour of the Developers. Following the
decisions of this Court in Pioneer Urban Land and Infrastructure
Ltd. v. Govind Raghvan,5 (“Pioneer”), the Commission directed the
Developer to refund the amount of Rs.2,36,15,726/- with interest @ 9%
p.a.
D 5.1 It is against these findings and the consequential directions of
the Commission that the Developer filed the present Civil Appeal No.
6044/2019. The Consumer also filed an appeal being Civil Appeal No.
7149/2019, challenging the Commission’s judgment to a limited extent
for grant of an enhanced interest @ 24% p.a.
E 5.2 Assailing the judgment of the Commission, Shri Gagan Gupta,
on behalf of the Developer submitted that the decision of this Court in
Pioneer has no application to the facts of the present case, as in Pioneer,
the Court did not have to deal with Delay Compensation Clause like in
the present case. Terms of the Apartment Buyer’s Agreement alone,
F according to him, would govern the relations between the parties. He
argued that no prejudice would be caused to the Consumer if he is asked
to take possession of the property. Referring to the provisions of the
Real Estate (Regulation and Development) Act, 20166 and particularly
to the Regulations made by Haryana Real Estate Regulatory Authority,
which were relied on in Pioneer case, he submitted that the Consumer
G has elected to proceed under the Consumer Protection Act, 1986 and
therefore the provisions of RERA Act will not apply and the Pioneer
cannot be followed as a precedent. In the alternative, he argued that the

5
Pioneer Urban Land and Infrastructure Ltd. v. Govindan Raghvan (2019) 5 SCC 725
6
H hereinafter referred to as “RERA Act”.
EXPERION DEVELOPERS PVT. LTD. v. SUSHMA ASHOK SHIROOR 597
[PAMIDIGHANTAM SRI NARASIMHA, J.]

interest granted by the Commission is excessive in both the period of the A
grant and the rate of interest.
5.3 Shri Jitendra Chaudhary, learned counsel on behalf of the
Consumer, supported the decision of the Commission on all counts and
also relied on the judgment of this Court in Pioneer. In his appeal, he
argued that the rate of interest granted by the Commission is far too low B
and urged for enhancement of the rate of interest to @ 24% p.a. as
demanded by her in the petition before the Commission.
6. Having heard the parties the following issues arise for
consideration:
I. Whether the terms of the Apartment Buyers Agreement amount C
to an ‘unfair trade practice’ and whether the Commission is justified
in not giving effect to the terms of Apartment Buyer’s Agreement
as laid down in the Pioneer case?
II. Whether the Commission has the power under the Consumer
Protection Act, 1986 to direct refund of the amount deposited by D
the Consumer with interest?
III. Whether the relief granted by the Commission require any
modification to serve ends of justice?
RE: Issue No. I E
7. Clauses 10.1 and 13.1 of the Apartment Buyers Agreement
relating to project completion period and delay compensation may be
noticed:
“10 PROJECT COMPLETION PERIOD
F
10.1 “Subject to Force Majeure, timely payment of the Total
Sale Consideration and other provisions of this Agreement,
based upon the Company’s estimates as per present Project
plans, the Company intends to hand over possession of the
Apartment within a period of 42 (forty two) months from the
date of approval of the Building Plans or the date of receipt G
of the approval of the Ministry of Environment and Forests,
Government of India for the Project or execution of this
Agreement, whichever is later (‘Commitment Period’). The
Buyer further agrees that the Company shall additionally be
entitled to a time period of 180 (one hundred and eighty)
H
598 SUPREME COURT REPORTS [2022] 5 S.C.R.

A days (‘Grace Period’), after expiry of the Commitment Period
for unforeseen and unplanned Project realities. However, in
case of any default under this Agreement that is not rectified
or remedied by the Buyer within the time period as may be
stipulated, the Company shall not be bound by such
Commitment Period.
B
13 DELAY COMPENSATION:
13.1 If the Company fails to offer the possession of the
Apartment to the Buyer by the end of the Grace Period (or an
alternate apartment within the meaning of this Agreement), it
C shall be liable to pay to the Buyer liquidated damages
calculated at the rate of Rs. 7.50/- (Rupees Seven and Fifty
Paise only) per sq. ft. of Sale Area as full and final settlement
of any loss of whatsoever nature (‘Delay Compensation’) for
every month of delay or part thereof until the date of Notice
of Possession. The Buyer shall be entitled to payment/
D adjustment of the Delay Compensation only at the time of
payment of the final installment and other dues and charges
payable to the Company before assuming the possession of
the Apartment. No other claim of any description shall be
raised against the Company”.
E 8.1 On the question of reckoning the date for handing over of
possession of the apartment, the Commission recorded the fact admitted
by the Developer in Para 2 of its reply that “the trigger date for clause
10.1 is 26.12.2012, which is the date of execution of the apartment
buyer’s agreement”. The Commission calculated 42 months from this
F period, which turns out to be 26.06.2016. Further, adding the grace period
of 180 days, the time for delivery would expire on 26.12.2016. It is again
an admitted fact that the occupancy certificated was obtained only on
23.07.2018 and notice for possession was issued to the Consumer on
24.07.2018. Given the factual position and having examined the terms of
the Agreement, the Commission found the judgment of this Court in
G Pioneer is a relevant and conclusive precedent.
8.2 In somewhat similar factual as well as legal context, this Court
in Pioneer held as under:
“6.1 In the present case, admittedly the appellant builder
obtained the occupancy certificate almost 2 years after the
H
EXPERION DEVELOPERS PVT. LTD. v. SUSHMA ASHOK SHIROOR 599
[PAMIDIGHANTAM SRI NARASIMHA, J.]

date stipulated in the apartment buyer’s agreement. As a A
consequence, there was a failure to hand over possession of
the flat to the respondent flat purchaser within a reasonable
period. The occupancy certificate was obtained after a delay
of more than 2 years on 28-8-2018 during the pendency of
the proceedings before the National Commission. In LDA v.
B
M.K. Gupta, this Court held that when a person hires the
services of a builder, or a contractor, for the construction of
a house or a flat, and the same is for a consideration, it is a
“service” as defined by Section 2(o) of the Consumer
Protection Act, 1986. The inordinate delay in handing over
possession of the flat clearly amounts to deficiency of service. C
In Fortune Infrastructure v. Trevor D’Lima, this Court held
that a person cannot be made to wait indefinitely for
possession of the flat allotted to him, and is entitled to seek
refund of the amount paid by him, along with compensation.
6.2 The respondent flat purchaser has made out a clear case D
of deficiency of service on the part of the appellant builder.
The respondent flat purchaser was justified in terminating
the apartment buyer ’s agreement by filing the consumer
complaint, and cannot be compelled to accept the possession
whenever it is offered by the builder. The respondent purchaser
E
was legally entitled to seek refund of the money deposited by
him along with appropriate compensation.
6.3 The National Commission in the impugned order dated
23-10-2018 held that the clauses relied upon by the builder
were wholly one-sided, unfair and unreasonable, and could
F
not be relied upon……...
6.8 A term of a contract will not be final and binding if it is
shown that the flat purchasers had no option but to sign on
the dotted line, on a contract framed by the builder. The
contractual terms of the agreement dated 8-5-2012 are ex
G
facie one-sided, unfair and unreasonable. The incorporation
of such one-sided clauses in an agreement constitutes an
unfair trade practice as per Section 2(r) of the Consumer
Protection Act, 1986 since it adopts unfair methods or
practices for the purpose of selling the flats by the builder.
H
600 SUPREME COURT REPORTS [2022] 5 S.C.R.

A 7. In view of the above discussion, we have no hesitation in
holding that the terms of the apartment buyer’s agreement
dated 8-5-2012 were wholly one-sided and unfair to the
respondent flat purchaser. The appellant builder could not
seek to bind the respondent with such one-sided contractual
terms.”
B
9.1 The principle laid down in Pioneer’s case has been followed
consistently in many cases where the terms of the Apartment Buyer’s
Agreement were found to be one-sided and entirely loaded in favour of
the Developer, and against the allottee at every step. The following are
instances where the terms of the Apartment Buyer’s Agreement were
C found to be oppressive, constituting unfair trade practice and the Court
has not given effect to such terms of the Agreement:
9.2 In Arifur Rahman Khan v DLF Southern Homes Pvt. Ltd.7,
this Court held that there is no embargo on the award of compensation
beyond the rate stipulated in the Apartment Buyer’s Agreement where
D handing over the possession of the flat has been delayed. The Court
observed that the Consumer Forums must take a robust and a common-
sense approach by taking judicial notice of the fact that flat purchasers
obtained loans and are required to pay EMIs to financial institutions for
subserving their debts. The Delay Compensation Clause provided for
E Rs. 5 per square foot per month. This Court found that this stipulation is
clearly one-sided and does not maintain a level platform or even reflect
a bargain between the parties. The Court granted additional compensation
@ 6% p.a. simple interest to each buyer therein, over and above the
Delay Compensation Clause.

F 9.3 In NBCC v Shri Ram Trivedi8, the Court found that the
agreement fastening liability on the purchaser to pay simple interest @
12% p.a. if he failed to pay instalments on time and at the same time, if
the seller failed to hand over the possession on time, he would have to
pay compensation only @ of Rs. 2 per square feet would constitute an
unfair trade practice. The Court held that a term of a contract would not
G be final and binding if it is shown that the flat purchasers have no option
but to sign on the dotted line of a contract framed by the builders. The

7
Wing Commander Arifur Rahman Khan and Aleya Sultana & Ors. v. DLF Southern
Homes Private Limited (2020) 16 SCC 512
8
H NBCC (India) Ltd. v. Shri Ram Trivedi (2021) 5 SCC 273
EXPERION DEVELOPERS PVT. LTD. v. SUSHMA ASHOK SHIROOR 601
[PAMIDIGHANTAM SRI NARASIMHA, J.]

Court further held that Consumer Forums were empowered to award A
just and reasonable compensation as an incident of its power to direct
removal of a deficiency in service; they are not constrained by the rate
prescribed in the agreement. The Court held that the compensation could
be granted even if possession had been delivered. The same principle
followed in a subsequent decision in DLF Home Developers Ltd. v.
B
Capital Greens Flat Buyers9.
9.4 A three-judge bench of this Court in IREO Grace Realtech
(P) Ltd. V. Abhishek Khanna10 noticed the delay compensation clause,
which is similar to the clause in the present case, which provided that
the Developer would be liable to pay delay compensation @ Rs 7.5 per
square foot which works out to approximately 0.9 to 1% p.a. The Court C
held that this Clause is one-sided and entirely loaded in favour of the
Developer and against the allottee. The Court concluded that the powers
of the Consumer Court were in no manner constrained to declare a
contractual term as unfair and one-sided as an incident of the power to
discontinue unfair or restrictive trade practices. It was held: D
“34. We are of the view that the incorporation of such one-
sided and unreasonable clauses in the apartment buyer’s
Agreement constitutes an unfair trade practice under Section
2(1)(r) of the Consumer Protection Act. Even under the1986
Act, the powers of the consumer fora were in no manner E
constrained to declare a contractual term as unfair or one-
sided as an incident of the power to discontinue unfair or
restrictive trade practices. An “unfair contract” has been
defined under the 2019 Act, and powers have been conferred
on the State Consumer Fora and the National Commission to
declare contractual terms which are unfair, as null and void. F
This is a statutory recognition of a power which was implicit
under the 1986 Act.
35. In view of the above, we hold that the Developer cannot
compel the apartment buyers to be bound by the one-sided
contractual terms contained in the apartment buyer ’s G
Agreement.”

9
DLF Home Developers Ltd. v. Capital Greens Flat Buyers Association & Ors. (2021)
5 SCC 537
10
IREO Grace Realtech (P) Ltd. v. Abhishek Khanna & Ors. (2021) 3 SCC 241 H
602 SUPREME COURT REPORTS [2022] 5 S.C.R.

A 10. Having examined various decisions of this Court which
considered similar clauses in Apartment Buyer’s Agreement and
following the ratio laid down in Pioneer case, the submission made on
behalf of the Developer has to be rejected. We hold that the Commission
is correct in its approach in holding that the clauses of the agreement are
one-sided and that the Consumer is not bound to accept the possession
B
of the apartment and can seek refund of the amount deposited by her
with interest.
Re : Issue No. II
11. Shri Gagan Gupta, submitted that the Consumer, having elected
C to proceed under the Act, the provisions of the RERA Act will have no
application. The submission is made to distinguish the facts of the present
case from the facts of Pioneer, which is relied on by the Commission.
12. This question is no more res integra. In Imperia Structures
Ltd v. Anil Patni11, this Court speaking through Justice Uday Umesh
D Lalit, examined the jurisdiction of Consumer Forums vis-a-vis the specific
remedies created under the RERA Act. This judgment comprehensively
deals with all aspects of parallel remedies available to the consumers
under the Consumer Protection Act, 1986, and the RERA Act, 2016. In
Imperia Structures, also, like in the present case, the proceedings arose
out of the decision of the Commission under the Consumer Protection
E Act, 1986. After a comparative analysis of both the statutes, this Court
held as under:
“23. It has consistently been held by this Court that the
remedies available under the provisions of the CP Act are
additional remedies over and above the other remedies
F including those made available under any special statutes;
and that the availability of an alternate remedy is no bar in
entertaining a complaint under the CP Act.
24. Before we consider whether the provisions of the RERA
Act have made any change in the legal position stated in the
G preceding paragraph, we may note that an allottee placed in
circumstances similar to that of the Complainants, could have
initiated the following proceedings before the RERA Act came
into force:

11
H Imperia Structures Ltd v. Anil Patni & Anr. (2020) 10 SCC 783
EXPERION DEVELOPERS PVT. LTD. v. SUSHMA ASHOK SHIROOR 603
[PAMIDIGHANTAM SRI NARASIMHA, J.]

A) If he satisfied the requirements of being a “consumer” A
under the CP Act, he could have initiated proceedings under
the CP Act in addition to normal civil remedies.
B) However, if he did not fulfil the requirements of being a
“consumer”, he could initiate and avail only normal civil
remedies. B
C) If the agreement with the Developer or the builder provided
for arbitration:-
i) in cases covered under Clause (B) hereinabove, he could
initiate or could be called upon to invoke the remedies in
arbitration. C

ii) in cases covered under Clause (A) hereinabove, in
accordance with law laid down in Emaar MGF Land Ltd.
Vs. Aftab Singh, he could still choose to proceed under
the CP Act.
D
25. In terms of Section 18 of the RERA Act, if a promoter fails
to complete or is unable to give possession of an apartment
duly completed by the date specified in the agreement, the
promoter would be liable, on demand, to return the amount
received by him in respect of that apartment if the allottee
wishes to withdraw from the Project. Such right of an allottee E
is specifically made “without prejudice to any other remedy
available to him”. The right so given to the allottee is
unqualified and if availed, the money deposited by the allottee
has to be refunded with interest at such rate as may be
prescribed. The proviso to Section 18(1) contemplates a F
situation where the allottee does not intend to withdraw from
the Project. In that case he is entitled to and must be paid
interest for every month of delay till the handing over of the
possession. It is up to the allottee to proceed either under
Section 18(1) or under proviso to Section 18(1). The case of
Himanshu Giri came under the latter category. The RERA Act G
thus definitely provides a remedy to an allottee who wishes to
withdraw from the Project or claim return on his investment.
26. It is, therefore, required to be considered whether the
remedy so provided under the RERA Act to an allottee is the
only and exclusive modality to raise a grievance and whether H
604 SUPREME COURT REPORTS [2022] 5 S.C.R.

A the provisions of the RERA Act bar consideration of the
grievance of an allottee by other fora.
30. On the strength of the law so declared, Section 79 of the
RERA Act does not in any way bar the Commission or Forum
under the provisions of the CP Act to entertain any complaint.
B 34. It is true that some special authorities are created under
the RERA Act for the regulation and promotion of the real
estate sector and the issues concerning a registered project
are specifically entrusted to functionaries under the RERA
Act. But for the present purposes, we must go by the purport
C of Section 18 of the RERA Act. Since it gives a right “without
prejudice to any other remedy available”, in effect, such other
remedy is acknowledged and saved subject always to the
applicability of Section 79.
37. We may now consider the effect of the registration of the
D Project under the RERA Act. In the present case the
apartments were booked by the Complainants in 2011- 2012
and the Builder Buyer Agreements were entered into in
November, 2013. As promised, the construction should have
been completed in 42 months. The period had expired well
before the Project was registered under the provisions of the
E RERA Act. Merely because the registration under the RERA
Act is valid till 31.12.2020 does not mean that the entitlement
of the allottees concerned to maintain an action stands
deferred. It is relevant to note that even for the purposes of
Section 18, the period has to be reckoned in terms of the
F agreement and not the registration. Condition (x) of the letter
dated 17.11.2017 also entitles an allottee in same fashion.
Therefore, the entitlement of the Complainants must be
considered in the light of the terms of the builder buyer
agreements and was rightly dealt with by the Commission”.
G 13.1 In view of the clear and categorical principles laid down in
Imperia, the submissions made on behalf of the Developer have to be
rejected. This position has also been affirmed in IREO Grace (supra).
In IREO Grace (supra) this Court had an occasion to consider the
question as to whether, the provisions of the RERA Act, must be given
primacy over the Consumer Protection Act, 1986. After re-examining
H
EXPERION DEVELOPERS PVT. LTD. v. SUSHMA ASHOK SHIROOR 605
[PAMIDIGHANTAM SRI NARASIMHA, J.]

the provisions of Consumer Protection Act, 1986 and the RERA Act, A
and following the principles laid down in Imperia the Court held as under:-
“37. We will now consider the provisions of the RERA Act,
which was brought into force on 01.05.2016. The Statement
of Objects and Reasons of the RERA Act, 2016 read as
follows:- B
“The Statement of Objects and Reasons – The real estate sector
plays a catalytic role in fulfilling the need and demand for
housing and infrastructure in the country. While this sector
has grown significantly in recent years, it has been largely
unregulated, with absence of professionalism and C
standardization and lack of adequate consumer protection.
Though the Consumer Protection Act, 1986 is available as a
forum to the buyers in the real estate market, the recourse is
only curative and is not adequate to address all the concerns
of buyers and promoters in that sector. The lack of
standardization has been a constrained to the healthy and D
orderly growth of industry. Therefore, the need for regulating
the sector has been emphasized in various forums.
In view of the above, it becomes necessary to have a Central
legislation, namely, the Real Estate (Regulation and
Development) Bill, 2013 in the interests of effective consumer E
protection, uniformity and standardization of business
practices and the transactions in the real estate sector. The
proposed Bill provides for the establishment of the Real Estate
Regulatory Authority (the Authority) for regulation and
promotion of real estate sector and to ensure sale of plot, F
apartment or building, as the case may be, in an efficient and
transparent manner and to protect the interest of consumers
in real estate sector and establish the Real Estate Appellate
Tribunal to hear appeals from the decisions, directions or
orders of the Authority.
G
37.1 Section 18 of the RERA Act, 2016 provides the remedy
of refund with interest and compensation to allottees, when a
developer fails to complete the construction or give possession
as per the agreement of sale. The remedies under Section 18
are “without prejudice to any other remedy available.”
H
606 SUPREME COURT REPORTS [2022] 5 S.C.R.

A 13.2 In coming to its conclusions, the three-Judge bench relied
on the judgment of Imperia which clarified and declared that Section
18 of the RERA Act imposed a liability on the promoter to return the
amount with interest to the allottee upon its failure to give possession
in accordance with the terms of the agreement. The expression
“without prejudice to any other remedy” available in Section 18 of
B
the RERA Act is very important and while noting the same the Court
observed as under:
“42. In a recent judgment delivered by this Court in Imperia
Structures Ltd. v. Anil Patni, it was held that remedies under
C the Consumer Protection Act were in addition to the remedies
available under special statutes. The absence of a bar under
Section 79 of the r to the initiation of proceedings before a
fora which is not a civil court, read with Section 88 of the
RERA Act makes the position clear. Section 18 of the RERA
Act specifies that the remedies are “without prejudice to any
D other remedy available”. We place reliance on this
judgment..…”
14.1 From the two decisions referred to by us, it is crystal clear
that the Consumer Protection Act and the RERA Act neither exclude
nor contradict each other. In fact, this Court has held that they are
E concurrent remedies operating independently and without primacy. When
Statutes provisioning judicial remedies fall for construction, the choice
of the interpretative outcomes should also depend on the constitutional
duty to create effective judicial remedies in furtherance of access to
justice. A meaningful interpretation that effectuates access to justice
F is a constitutional imperative and it is this duty that must inform the
interpretative criterion.
14.2 When Statutes provide more than one judicial fora for
effectuating a right or to enforce a duty-obligation, it is a feature of
remedial choices offered by the State for an effective access to justice.
G Therefore, while interpreting statutes provisioning plurality of remedies,
it is necessary for Courts to harmonise the provisions in a constructive
manner. It is beneficial to juxtapose the preambular objects of the
Consumer Protection Act and the RERA Act to appreciate the
commonality of the objects that both these statutes are to sub-serve:

H
EXPERION DEVELOPERS PVT. LTD. v. SUSHMA ASHOK SHIROOR 607
[PAMIDIGHANTAM SRI NARASIMHA, J.]

A

B

C

14.3 In this context, the observation of this Court in Pioneer
Urban Land Infrastructure Ltd v. Union of India12 where the Court
was called upon to consider the provisions of Insolvency and Bankruptcy
D
Code, 2016, the RERA Act, 2016 and the Consumer Protection Act,
1986 is noteworthy:
“100. RERA is to be read harmoniously with the Code, as
amended by the Amendment Act. It is only in the event of
conflict that the code will prevail over RERA. Remedies that
E
are given to allottees of flats/apartments are therefore
concurrent remedies, such allottees of flats/apartments being
in a position to avail of remedies under the Consumer
Protection Act, 1986, RERA as well as the triggering of the
Code.”
15. We may hasten to clarify that the power to direct refund of F
the amount and to compensate a consumer for the deficiency in not
delivering the apartment as per the terms of Agreement is within the
jurisdiction of the Consumer Courts. Under Section 14 of the Consumer
Protection Act, if the Commission is satisfied …that any of the
allegations contained in the complaint about the services are proved, G
it shall issue an order to the opposite party directing him to, return
to the complainant the price or as the case may be, the charges
paid by the complainant. ‘Deficiency’ is defined under Section 2(g) to
12
Pioneer Urban Land Infrastructure Ltd. & Anr. v. Union of India & Ors. (2019) 8
SCC 416 H
608 SUPREME COURT REPORTS [2022] 5 S.C.R.

A include any shortcoming or inadequacy in performance which has been
undertaken by a person in pursuance of a contract or otherwise relating
to any service. These two provisions are reproduced hereinbelow for
ready reference. 13 It is clear from the statutory position that the
Commission is empowered to direct refund of the price or the charges
paid by the consumer.
B
16. A consumer invoking the jurisdiction of the Commission can
seek such reliefs as he/she considers appropriate. A consumer can
pray for refund of the money with interest and compensation. The
consumer could also ask for possession of the apartment with
compensation. The consumer can also make a prayer for both in the
C alternative. If a consumer prays for refund of the amount, without an
alternative prayer, the Commission will recognize such a right and grant
it, of course subject to the merits of the case. If a consumer seeks
alternative reliefs, the Commission will consider the matter in the facts
and circumstances of the case and will pass appropriate orders as justice
D
13
“14. Finding of the District Forum. – (1) If, after the proceedings conducted under
section 13, the District Forum is satisfied that the goods complained against suffer
from any of the defects specified in the complaint or that any of the allegations contained
in the complaint about the services are proved, it shall issue an order to the opposite
party directing him to [do] one or more of the following things namely:-
E (a) ……
(b)….
(c) to return to the complainant the price, or, as the case may be, the charges paid by the
complainant;
…….
(hb) to pay such sum as may be determined by it, if it is of the opinion that loss or
injury has been suffered by a large number of consumers who are not identifiable
F conveniently:
Provided that the minimum amount of sum so payable shall not be less than five per
cent of the value of such defective goods sold or services provided, as the case may be,
to such consumers:
Provided further that the amount so obtained shall be credited in favour of such person
and utilized in such manner as may be prescribed.
……
G (i) to provide for adequate costs to parties.
2. Definitions. – (1) In this Act, unless the context otherwise requires,-
…………
(g) “deficiency” means any fault, imperfection, shortcoming or inadequacy in the quality,
nature and manner of performance which is required to be maintained by or under any
law for the time being in force or has been undertaken to be performed by a person in
H pursuance of a contract or otherwise in relation to any service;”
EXPERION DEVELOPERS PVT. LTD. v. SUSHMA ASHOK SHIROOR 609
[PAMIDIGHANTAM SRI NARASIMHA, J.]

demands. This position is similar to the mandate under Section 18 of the A
RERA Act14 with respect to which the Court clarified the position in
Para 25 of Imperia case referred to herein above.
17. We have referred to the legal regime under the Consumer
Protection Act, only to show that the Commission has the power and
jurisdiction to direct return of money under Section 14 of the Consumer B
Protection Act, if a consumer so chooses. The freedom to choose the
necessary relief is of the Consumer and it is the duty of the Courts to
honour it.
18. The Consumer in present case prayed for the solitary relief
for return of the amount paid towards purchase of the apartment without C
a prayer for alternate relief.15 Recognizing the right of the Consumer for

14
18. Return of amount and compensation. - (1) If the promoter fails to complete or
is unable to give possession of an apartment, plot or building,—
(a) in accordance with the terms of the agreement for sale or, as the case may be, duly
completed by the date specified therein; or D
(b) due to discontinuance of his business as a developer on account of suspension or
revocation of the registration under this Act or for any other reason,
he shall be liable on demand to the allottees, in case the allottee wishes to withdraw
from the project, without prejudice to any other remedy available, to return the amount
received by him in respect of that apartment, plot, building, as the case may be, with
interest at such rate as may be prescribed in this behalf including compensation in the
manner as provided under this Act: E
Provided that where an allottee does not intend to withdraw from the project, he shall
be paid, by the promoter, interest for every month of delay, till the handing over of the
possession, at such rate as may be prescribed.
(2) The promoter shall compensate the allottees in case of any loss caused to him due
to defective title of the land, on which the project is being developed or has been
developed, in the manner as provided under this Act, and the claim for compensation
under this sub-section shall not be barred by limitation provided under any law for the F
time being in force.
(3) If the promoter fails to discharge any other obligations imposed on him under this
Act or the rules or regulations made thereunder or in accordance with the terms and
conditions of the agreement for sale, he shall be liable to pay such compensation to the
allottees, in the manner as provided under this Act.”
15
The prayer made by the Consumer before the Commission is extracted herein for
ready reference:
G
“PRAYER: It is, therefore, most respectfully prayed that This Hon’ble Forum may be
graciously be pleased to; (a) Hold the Opposite Party guilty of unfair and restrictive
trade practice as despite taking more than Rs. 2,06,41,379/- they have not completed
the construction in 42 months as promised in the apartment buyer’s agreement. (b)
Hold the Opposite Party guilty of cheating, misleading and responsible for deficiency
in service as on one hand they failed to complete the construction in terms of the H
610 SUPREME COURT REPORTS [2022] 5 S.C.R.

A return of the amount with interest and compensation, the Commission
passed an order directing the Developer as under:
“The opposite party shall refund an amount of Rs.2,06,41,379/
- paid by the complainant along with interest @ 9% p.a. from
the date of last deposit before the due date of possession till
B actual payment on the amount paid before due date of
possession and after this date if any amount is deposited,
then from the date of deposit till actual payment.”
19. For the reasons stated above, we are of the opinion that the
Commission has correctly exercises its power and jurisdiction in passing
the above directions for refund of the amount with interest.
C
Re : Issue No. III
20. In the appeal filed by the Consumer, the learned counsel prayed
that: (i) the payment of interest must be from the date of payment of
each instalment and (ii) the rate of interest must be 24% p.a. He has
referred to the dates on which he has made payments, and sought interest
D from the said dates:
Details of payment made to the respondent: -

E

F

agreement and on the other hand they have charged the Complainant more than
Rs.2,06,41,379/-. (c) direct the Opposite Party to refund the amount of Rs. 2,06,41,379/
G - paid to the Opposite Party along with interest @ 24 % p.a. totalling to Rs. 3,68,32,815/
- (rupees Three Crores Sixty-Eight Lacs Thirty Two Thousand Eight Hundred and
Fifteen Only); (d) the Complainant be awarded future as well as pendentelite interest
@ 24 % p.a. (e) Pay a sum of Rs. 5,00,000/- towards cost of the complaint. (f) Pass
such other and further order(s) as this Hon’ble Forum may deem fit and proper under
the facts and circumstances of the case in favour of the Complainant and against the
Opposite Party.”
H
EXPERION DEVELOPERS PVT. LTD. v. SUSHMA ASHOK SHIROOR 611
[PAMIDIGHANTAM SRI NARASIMHA, J.]

A

B

C

D

E
21. On the other hand, the Appellant-Developer submitted that (i)
period for interest should be linked to the estimated date of possession
and not the date of payments and (ii) the rate of interest must be the rate
provided in the Interest Act, 1978.
22.1 We are of the opinion that for the interest payable on the
amount deposited to be restitutionary and also compensatory, interest F
has to be paid from the date of the deposit of the amounts. The Commission
in the order impugned has granted interest from the date of last deposit.
We find that this does not amount to restitution. Following the decision in
DLF Homes Panchkula Pvt Ltd v. DS Dhanda16 and in modification
of the direction issued by the Commission, we direct that the interest on G
the refund shall be payable from the dates of deposit. Therefore, the
appeal filed by purchaser deserves to be partly allowed. The interests
shall be payable from the dates of such deposits.

16
DLF Homes Panchkula Pvt. Ltd. v. DS Dhanda and Ors. (2020) 16 SCC 318 (at para
21). H
612 SUPREME COURT REPORTS [2022] 5 S.C.R.

A 22.2 At the same time, we are of the opinion that the interest of 9
per cent granted by the Commission is fair and just and we find no
reason to interfere in the appeal filed by the Consumer for enhancement
of interest.
23. We were informed that the Appellant-Developer deposited a
B sum of Rs. 50,000/- in the registry of this Court as per proviso to Section
23 of the Act. This amount shall be made over to the Respondent-
Consumer, to be adjusted against the final amount payable by the
Developer to the Consumer.
24. In view of the above, the Civil Appeal No. 6044 of 2019 filed
C by the Appellant Developer is dismissed and the appeal filed by the
Consumer being Civil Appeal No.7149 of 2019 is allowed in part as
indicated above.
25. Parties shall bear their own costs.

D Devika Gujral Appeals disposed of.
(Assisted by : Mahendra Yadav, LCRA)

E

F

G

H