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Consumer Lawyer: In absence of any material showing loss, the damages cannot be awarded; SC.

Supreme Court of India

Justice Abhay Manohar Sapre and Justice Dinesh Maheshwari

The SC {Treaty Construction and Another versus Ruby Tower Cooperative Housing Society Limited} was seized of the matter regarding the direction issued by the National Commission for payment of compensation of Rupees 3,00,000/- against the appellant / builder. And for not obtaining Occupancy Certificate, to pay Rupees 1000 per day by the builder, for every day of delay, in execution of the requisite deed, in favour of the respondent /society.

It was held by the SC that as the members of the respondent society took possession of the flat, without Occupancy Certificate, and there are alteration carried out by them, for which the Municipal Corporation has the objections to raise, and there is no material to hold the appellant liable for compensation; and then, for assessing the quantum of compensation - the compensation cannot be awarded. It was further held that there is no material on record, to find if the respondent society or its member suffered any loss; and if so, the extent thereof. Therefore, in view of that, the Supreme Court set aside the orders of the National Commission for payment of compensation, and also for imposition of penalty of Rs. 1000 per day, for not obtaining the Occupancy Certificate, on builder. The Appeal was partly allowed.


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