| ASPECTS | DETAILS |
| Case Title | Omkar Realtors and Developers Pvt. Ltd. vs. Kushalraj Land Developers Pvt. Ltd. & Anr. |
| Introduction | The appeal under Section 67 of the Consumer Protection Act, 2019, was filed against NCDRC’s order in a dispute involving flat allotment in a real estate project. |
| Factual Background | The redpondent Kushalraj booked a flat with Omkar Realtors in 2015, paid ₹7.16 crore, and received an allotment letter in year 2016. The possession date was advanced, and later it was found that the flat was already allotted to another person. In response to this the applicant Omkar Realtors canceled the allotment and forfeited the amount paid. |
| Legal Issues | 1. Whether Kushalraj was a consumer under Section 2(7) of the Consumer Protection Act.
2. Whether there was a deficiency in service or unfair trade practice by Omkar Realtors in allotting the flat and forfeiting the amount. |
| Applicable Law | Consumer Protection Act, 2019 [Section 2(7) defining “consumer”]. |
| Analysis | The court ruled that whether the purchase was for commercial purposes and found that the flat was intended for personal use, not business. The double allotment and subsequent cancellation were deemed unjustified, making the forfeiture of the deposit unlawful. |
| Conclusion | The Supreme Court upheld the NCDRC’s decision, confirming that Kushalraj was a consumer and that Omkar Realtors were guilty of deficiency in service and unfair trade practices. The company was ordered to refund the amount with interest. |
| Current Scenario | The appeal was dismissed, with Omkar Realtors instructed to refund a substantial portion of the amount immediately and the remainder by December 2024, with penalties for non-compliance |
CASE SUMMARY – The Supreme Court of India dealt with an appeal by Omkar Realtors and Developers Pvt. Ltd. challenging the National Consumer Disputes Redressal Commission (NCDRC) order, which directed the company to refund over ₹7 crore to Kushalraj Land Developers Pvt. Ltd. The dispute arose from the double allotment of a flat in a real estate project, leading to cancellation and forfeiture of the deposited amount by Omkar Realtors. The court upheld NCDRC’s decision, finding Omkar Realtors guilty of deficiency in service and unfair trade practices.
SOURCE – SUPREME COURT OF INDIA
