Santosh Kumari vs Vardhman Properties Limited on 23 August, 2025

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Delhi District Court

Santosh Kumari vs Vardhman Properties Limited on 23 August, 2025

              IN THE COURT OF SH. KULDEEP NARAYAN,
                        DISTRICT JUDGE-02
                  SOUTH-EAST, SAKET, NEW DELHI


         CS No.337/2022
         CNR No. DLSE01-003060-2022

1.       Smt. Santosh Kumari
         W/o Late Prem Prakash
         R/o C-234, Gali No.8,
         Majlis Park, Lord Krishna Road,
         Delhi-110033

2.       Smt. Mamta Gandhi
         W/o Sh. Vijay Gandhi
         R/o 26/138, 2nd Floor,
         West Patel Nagar,
         New Delhi-110008
                                                                             ............. Plaintiffs
                    Versus

         M/s. Vardhman Properties Ltd.
         G-9, Vardhman Trade Centre,
         Nehru Place, New Delhi-110019
         (Through Managing Director)
                                                                            ............ Defendant

CS DJ No.337/2022       Santosh Kumari & Anr. Vs. M/s. Vardhman Properties Ltd.     Page No. 1 of 50
                                                                                      KULDEEP
                                                                                      NARAYAN
                                                                                       Digitally signed by
                                                                                       KULDEEP NARAYAN
                                                                                       Date: 2025.08.23
                                                                                       14:00:59 +0530
                                                                                    District Judge-02,
                                                                                    South-East, Saket
          Date of Institution        :                         01.06.2022
         Date of reserving Judgment :                         18.08.2025
         Date of pronouncement      :                         23.08.2025



                      SUIT FOR RECOVERY OF MONEY

JUDGMENT

The present suit is filed by the plaintiffs seeking recovery of

Rs.17 Lakhs.

Pleadings:

2. The brief facts as per the plaint are that the plaintiffs jointly

booked two units No. T-96 & T-97 in Vardhman Central Mall,

L.S.C., Nehru Vihar, New Delhi and an agreement in this regard

was executed on 18.08.2007 between the plaintiffs and the

defendant company. Plaintiffs deposited Rs.20,000/- vide receipt

No.56388 dated 23.08.2007, gave a cheque of Rs.2,14,530/- dated

23.08.2007 drawn on Punjab National Bank vide receipt
CS DJ No.337/2022 Santosh Kumari & Anr. Vs. M/s. Vardhman Properties Ltd. Page No. 2 of 50
Digitally
signed by
KULDEEP
KULDEEP NARAYAN
NARAYAN Date:

2025.08.23
14:01:08
+0530
District Judge-02,
South-East, Saket
No.56389 dated 23.08.2007 and thereafter, further gave a cheque

of Rs.4,69,060/- dated 17.09.2007 drawn at Punjab National Bank

vide receipt No.56991 dated 17.09.2007 and thus, a total sum of

Rs.7,03,590/- is lying deposited with the defendant; that

defendant started demanding illegal amount towards advance

maintenance charges and other charges for the period 01.04.2010

to 31.03.2013 though the possession of the said units was not

handed over to the plaintiffs; that the plaintiffs sent a Legal

Notice dated 09.11.2010 demanding to get back their deposited

amount with the defendant, but the defendant did not comply the

said legal notice and sent a false reply; that thereafter the

plaintiffs filed a Complaint No.661/2010 titled as “Santosh

Kumari & Mamta Gandhi v. Vardhman Properties Ltd.” before

the District Consumer Forum, Mehrauli, Delhi which was

withdrawn on 10.08.2018 with the liberty to file the same on the

same cause of action in appropriate forum/Court as the properties

CS DJ No.337/2022 Santosh Kumari & Anr. Vs. M/s. Vardhman Properties Ltd. Page No. 3 of 50
Digitally
signed by
KULDEEP
KULDEEP NARAYAN
NARAYAN Date:

2025.08.23
14:01:16
+0530

District Judge-02,
South-East, Saket
involved were shops and Consumer Protection Act had no

jurisdiction in the matter; that thereafter the plaintiffs filed a

Complaint No.39 of 2018 titled as “Santosh Kumari & Mamta

Gandhi v. Vardhman Properties Ltd.” before the Real Estate

Regulatory Authority, New Delhi (RERA) which was dismissed

on 11.04.2019 as the complaint was not maintainable before the

Authority under the Real Estate (Regulation & Development) Act,

2016; that thereafter the plaintiffs filed an application before the

South-East District Legal Services Authority for pre-institution

mediation on 27.07.2020, but the defendant did not participate in

the mediation process; that the defendant is liable to refund the

total amount of Rs.17,00,342/- i.e., principal amount of

Rs.7,03,590/- alongwith interest @ 10% per annum w.e.f.

01.10.2007 to 30.11.2021 which comes to Rs.10,97,600/- hence,

the present suit for recovery of Rs.17 Lakhs alongwith pendente-

lite and future interest @ 10% per annum from the date of filing

CS DJ No.337/2022 Santosh Kumari & Anr. Vs. M/s. Vardhman Properties Ltd. Page No. 4 of 50
Digitally
signed by
KULDEEP
KULDEEP NARAYAN
NARAYAN Date:

2025.08.23
14:01:26
+0530

District Judge-02,
South-East, Saket
of the suit till the realization of decretal amount.

3. Summons of the suit was issued to defendant and after service of

summons, the defendant filed written statement on 30.11.2022,

taking preliminary objections that the suit was barred by Order 7

Rule 11 CPC for not disclosing any cause of action in favour of

the plaintiffs; that the present suit was hopelessly barred by law of

limitation because as per the plaintiffs, the cause of action firstly

arose on 30.12.2009 when the defendant demanded maintenance

charges from the plaintiffs but the present suit was filed on

05.04.2022 i.e. after passing more than 12 years 3 months

approximately; that the possession of the aforesaid units was

offered to the plaintiffs by the defendant vide Letter dated

30.12.2009, whereby plaintiffs were requested to take the

possession of their units on or before 31.01.2010 after making

payment of the balance dues amounting to Rs.11,96,103/- as well

as maintenance charges amounting to Rs.1,86,628/-; that the

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Digitally
signed by
KULDEEP
KULDEEP NARAYAN
NARAYAN Date:

2025.08.23
14:01:33
+0530

District Judge-02,
South-East, Saket
plaintiffs are estopped from reverting from their own consent

given as per the terms and conditions at the time of signing the

agreement as they failed to make further payment and clear their

dues even after numerous reminders by the defendant; that the

plaintiffs jointly entered into a flat buyer allotment Agreement

dated 18.08.2007 with respect to two shops, being Unit No. T-96

& T-97, Vardhman Central Mall, L.S.C., Nehru Place, Delhi and

the total sale consideration of both the said units was

Rs.16,41,710/-; that the defendant having completed the

construction of the building, offered the plaintiffs to take the

possession of their units on 30.12.2009 and further demanded the

balance dues amounting to Rs.11,96,103/- only along with a sum

of Rs.1,86,628/- only as advance maintenance charges for three

years as agreed vide the said Agreement; that the plaintiff chose

to remain quiet for a considerable time and did not come forward

to clear the dues for allotment of the said units for reasons best

CS DJ No.337/2022 Santosh Kumari & Anr. Vs. M/s. Vardhman Properties Ltd. Page No. 6 of 50
Digitally
signed by
KULDEEP
KULDEEP NARAYAN
NARAYAN Date:

2025.08.23
14:01:41
+0530
District Judge-02,
South-East, Saket
known to them; that the defendant had made innumerable written

requests to the plaintiffs from time to time to make the payment

of outstanding dues and to take possession of the two units, vide

letters dated 26.02.2010, 02.03.2010, 29.03.2010, 27.04.2010,

27.05.2010, 26.06.2010, 27.08.2010, 24.09.2010, 27.10.2010 &

20.12.2010, however, even after receiving all the said letters, the

plaintiffs chose to sit quiet and failed to remit the balance amount

and, instead of remitting the contractual dues, chose to file the

false and fictitious suit; that the defendant was left with no

alternative but to cancel the allotment of the said two units and

sent a Letter dated 30.10.2011 cancelling the booking of the

aforesaid two units being Unit No. T-96 & T-97, Vardhman

Central Mall, LSC, Nehru Place, Delhi and further as per the

terms and conditions of the Agreement, refunded an amount of

Rs.2,93,163/- only vide Cheque No. 286258 dated 31.10.2011

drawn on State Bank of Mysore, Nehru Place, New Delhi after

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Digitally
signed by
KULDEEP
KULDEEP NARAYAN
NARAYAN Date:

2025.08.23
14:01:48
+0530

District Judge-02,
South-East, Saket
forfeiting 25% of the total cost on account of non-payment of

installments.

Issues:

4. Vide order dated 26.07.2023, as per the pleadings, following

issues were framed:

i. Whether plaintiff is entitled to decree for a sum of Rs.17

Lakhs as prayed? OPP

ii. Whether the plaintiff is entitled to interest, if yes, at what

rate and for which period? OPP

iii. Whether suit of the plaintiff is within the limitation? OPP

iv. Whether plaintiff is entitled to benefit of Section 14 of The

Limitation Act? OPP

v. Whether the plaintiff committed breach of terms and

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signed by
KULDEEP
KULDEEP NARAYAN
NARAYAN Date:

2025.08.23
14:01:55
+0530
District Judge-02,
South-East, Saket
condition of the Flat Buyer Allotment Agreement dated

18.08.2007, if yes, its effect? OPD

vi. Relief.

Plaintiff’s Evidence:

5. Plaintiffs led evidence and got plaintiff no.2 namely Smt. Mamta

Gandhi examined as PW-1 who deposed by way of affidavit

Ex.PW-1/A and relied upon the documents i.e. copy of Agreement

dated 18.08.2007 Ex. PW-1/1; copy of Letter dated 30.08.2007

Ex.PW-1/2A; copy of Letter dated 30.12.2009 Ex. PW-1/2B;

copy of Legal Notice dated 09.11.2010 Ex. PW-1/3; certified

copy of order dated 10.08.2018 Ex. PW-1/4; certified copy of

order dated 11.04.2019 Ex. PW-1/5 and Non-starter report of

mediation Ex. PW-1/6.

6. PW-1 deposed that both she and plaintiff no.1, had jointly booked

two units no. T-96 & T-97 in Vardhman Central Mall, L.S.C.,
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Digitally
signed by
KULDEEP
KULDEEP NARAYAN
NARAYAN Date:

2025.08.23
14:02:04
+0530

District Judge-02,
South-East, Saket
Nehru Vihar, New Delhi and the Agreement dated 18.08.2007

Ex.PW-1/1 was executed with the defendant in this regard. PW-1

further deposed that she and plaintiff no.1 had deposited a total

sum of Rs.7,03,590/- vide receipt no. 56388 dated 23.08.2007,

cheque dated 23.08.2007 and cheque dated 17.09.2007. PW-1

further deposed that the defendant started demanding illegal

amount towards advance maintenance charges, etc. for the period

01.04.2010 to 31.03.2013 vide Letters dated 30.08.2007 and

30.12.2009 though the possession of the shops was not handed

over to them. Thereafter, the plaintiffs sent Legal Notice dated

09.11.2010 Ex. PW-1/3 demanding their deposited amount from

the defendant, but the defendant did not comply and sent a false

reply. Thereafter, a complaint no.661/2010 titled as “Santosh

Kumari & Mamta Gandhi v. Vardhman Properties Ltd.” was filed

before the District Consumer Forum, Mehrauli, Delhi which was

withdrawn on 10.08.2018 vide order Ex. PW-1/4 with liberty to

CS DJ No.337/2022 Santosh Kumari & Anr. Vs. M/s. Vardhman Properties Ltd. Page No. 10 of 50
Digitally
signed by
KULDEEP
KULDEEP NARAYAN
NARAYAN Date:

2025.08.23
14:02:11
+0530

District Judge-02,
South-East, Saket
file the same in appropriate Forum/Court. Thereafter, a complaint

no.39/2018 titled as “Santosh Kumar & Mamta Gandhi v.

Vardhman Properties Ltd.” was filed before the Real Estate

Regulatory Authority, New Delhi (RERA) which was dismissed

vide order dated 11.04.2019 Ex.PW-1/5 (colly.) being not

maintainable before the Authority under the Real Estate

(Regularization & Development) Act, 2016.

7. PW-1 further deposed that thereafter one application was filed

before the South-East District Legal Services Authority for pre-

institution mediation on 27.07.2020, but the defendant did not

participate in the mediation process vide Non-Starter Report

Ex.PW-1/6.

8. PW-1 was cross-examined by the learned counsel for defendant.

During the cross-examination, PW-1 stated that the defendant had

first time offered to take the possession of the shops in the year

2009-10. PW-1 was asked a pointed question that in terms of
CS DJ No.337/2022 Santosh Kumari & Anr. Vs. M/s. Vardhman Properties Ltd. Page No. 11 of 50
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signed by
KULDEEP
KULDEEP NARAYAN
NARAYAN Date:

2025.08.23
14:02:17
+0530

District Judge-02,
South-East, Saket
Agreement Ex. PW-1/1, maintenance charges of Rs.120/- per sq.

feet in advance were required to be paid by the plaintiffs to which

she answered that the terms and conditions of the said agreement

were not read in detail at the time of signing the same.

9. On further cross-examination, PW-1 stated that the payment of

allied charges of Rs.2,57,980/- as mentioned in schedule of

installment on page no.3 of the Agreement Ex. PW-1/1 was not

made because the plaintiffs were not interested in continuing with

the deal and wanted the amount refunded from the defendant.

10. PW-1 denied the suggestion that the aforesaid payment was not

made because plaintiffs were not having sufficient amount for

making the payment. She further denied the suggestion that she

had signed the Agreement Ex. PW-1/1 after reading and

understanding the same. Thereafter, during cross-examination

recorded on 30.03.2024, learned counsel for defendant confronted

PW-1 with letters and postal receipts Ex. PW-1/DX-1 (colly.) to
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signed by
KULDEEP
KULDEEP NARAYAN
NARAYAN Date:

2025.08.23
14:02:26
+0530
District Judge-02,
South-East, Saket
Ex. PW-1/DX-11 (colly.). After seeing the same, PW-1 stated that

the said letters were never received by them though the addresses

mentioned on the said letters i.e. 9-B, Vikrant Apartments, Sector

13, Rohini, Delhi was their correct address. PW-1 further denied

that the defendant had sent a cheque of Rs.2,93,163/- on

31.10.2011 on the said address. She further voluntarily stated that

the said flat was in possession of her uncle since 2014-15.

Admittedly, the defendant was not informed about shifting from

the said flat. The defendant was also not informed regarding their

current address.

Defendant’s Evidence:

11. Thereafter, defendant led evidence and got Mr. Udesh Kumar,

authorized representative, examined as DW-1who deposed by way

of affidavit Ex. DW-1/1 and relied upon the documents i.e. copy

of reminder/letter dated 26.02.2010 Ex. DW-1/A, which was

already exhibited as Ex. PW-1/DX-1 (colly.) during cross-
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Digitally
signed by
KULDEEP
KULDEEP NARAYAN
NARAYAN Date:

2025.08.23
14:02:36
+0530

District Judge-02,
South-East, Saket
examination of PW-1; copy of reminder/ letter dated 02.03.2010

Ex. DW-1/B, which was already exhibited as Ex. PW-1/DX-2

(colly.) during cross-examination of PW-1; copy of reminder/letter

dated 29.03.2010 Ex. DW-1/C, which was already exhibited as

Ex. PW-1/DX-3 (colly.) during cross-examination of PW-1; copy

of reminder/letter dated 27.04.2010 Ex. DW-1/D, which was

already exhibited as Ex. PW-1/DX-4 (colly.) during cross-

examination of PW-1; copy of reminder/ letter dated 27.05.2010

Ex. DW-1/E, which was already exhibited as Ex. PW-1/DX-5

(colly.) during cross-examination of PW-1; copy of reminder/letter

dated 26.06.2010 Ex. DW-1/F, which was already exhibited as Ex.

PW-1/DX-6 (colly.) during cross-examination of PW-1; copy of

reminder/letter dated 27.08.2010 Ex. DW-1/G, which was already

exhibited as Ex. PW-1/DX-7 (colly.) during cross-examination of

PW-1; copy of reminder/ letter dated 24.09.2010 Ex. DW-1/H,

which was already exhibited as Ex. PW-1/DX-8 (colly.) during

CS DJ No.337/2022 Santosh Kumari & Anr. Vs. M/s. Vardhman Properties Ltd. Page No. 14 of 50
Digitally
signed by
KULDEEP
KULDEEP NARAYAN
NARAYAN Date:

2025.08.23
14:02:42
+0530

District Judge-02,
South-East, Saket
cross-examination of PW-1; copy of reminder/letter dated

27.10.2010 Ex. DW-1/I, which was already exhibited as

Ex.PW-1/DX-9 (colly.) during cross-examination of PW-1; copy

of reminder/letter dated 20.12.2010 Ex. DW-1/J, which was

already exhibited as Ex. PW-1/DX-10 (colly.) during cross-

examination of PW-1; copy of cancellation of allotment dated

31.10.2011 Ex. DW-1/K, which was already exhibited as

Ex.PW-1/DX-11 (colly.) during cross-examination of PW-1; copy

of Occupancy Letter Ex. DW-1/L; copy of Written Statement filed

by defendant in Consumer Forum Mark-DW-1/Z-1 and copy of

Written Statement filed by defendant before RERA

Mark-DW-1/Z-2.

12. Mr. Udesh Kumar (DW-1) deposed that the present suit is

hopelessly barred by law of limitation for the reason that the cause

of action firstly arose on 30.12.2009 when the defendant

demanded maintenance charges from the plaintiffs, whereas the

CS DJ No.337/2022 Santosh Kumari & Anr. Vs. M/s. Vardhman Properties Ltd. Page No. 15 of 50
Digitally
signed by
KULDEEP
KULDEEP NARAYAN
NARAYAN Date:

2025.08.23
14:02:48
+0530
District Judge-02,
South-East, Saket
present suit was filed on 05.04.2022 after more than 12 years

three months approximately.

13. DW-1 further deposed that offer of possession of the units was

made to the plaintiffs vide Letter dated 30.12.2009 requesting to

take possession on or before 31.01.2010 after making payment of

the dues amounting to Rs.11,96,103/- as well as maintenance

charges amounting to Rs.1,86,628/-. DW-1 further deposed that

the plaintiffs had agreed to abide with the terms and conditions as

contained in Agreement dated 18.08.2007 and agreed to pay the

allied charges for a sum of Rs.2,57,983/- which was payable at

the time of offer of the possession. The defendant after

completion of construction offered the plaintiffs to take

possession of their units on 30.12.2009 and demanded the balance

dues amounting to Rs.11,96,103/- alongwith a sum of

Rs.1,86,628/- towards advance maintenance charges for three

years as agreed vide the said Agreement, but the plaintiffs did not

CS DJ No.337/2022 Santosh Kumari & Anr. Vs. M/s. Vardhman Properties Ltd. Page No. 16 of 50
Digitally
signed by
KULDEEP
KULDEEP NARAYAN
NARAYAN Date:

2025.08.23
14:02:55
+0530
District Judge-02,
South-East, Saket
come forward to clear the dues for allotment of the said units.

Further the defendant had made innumerable written requests to

the plaintiffs from time to time to make payment of the

outstanding dues and to take the possession of units vide Letters

Ex. DW-1/A to Ex. DW-1/J. However, the plaintiffs failed to

remit the balance amount and instead filed the false and fictitious

suit.

14. DW-1 further deposed that the plaintiffs failed to perform their

contractual obligations and under the given circumstances, the

defendant was left with no alternative but to cancel the allotment

of the said two units. The defendant sent Letter dated 31.10.2011

cancelling the booking of the said two units and as per the terms

and conditions of the Agreement, refunded a sum of Rs.2,93,163/-

vide cheque no.286258 dated 31.10.2011 drawn on State Bank of

Mysore, Nehru Place, New Delhi after forfeiting 25% of the total

cost on account of non-payment of installments. DW-1 also relied

CS DJ No.337/2022 Santosh Kumari & Anr. Vs. M/s. Vardhman Properties Ltd. Page No. 17 of 50
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signed by
KULDEEP
KULDEEP NARAYAN
NARAYAN Date:

2025.08.23
14:03:04
+0530

District Judge-02,
South-East, Saket
upon the copy of the Cancellation of Allotment dated

31.10.2011,Ex. DW1/K, copy of Occupancy Letter Ex. DW-1/L,

copy of reply filed in District Consumer Forum Ex. DW-1/M

(colly.) and copy of reply filed in RERA Ex. DW-1/N (colly).

15. DW-1 was cross-examined by the learned counsel for plaintiff,

during which, he stated that he had joined job with the defendant

in the year 1966. He denied that he was not authorized to depose

as no Board Resolution or Authority Letter in his favour was filed

on record. DW-1 could not remember when Fire NOC of the

project i.e. Vardhman Central Mall, L.S.C., Nehru Vihar, New

Delhi was obtained.

16. On further cross-examination, DW-1 stated that the stipulated date

of completion of the project was in December, 2009. He further

denied the suggestion that the construction was not complete till

December, 2009 or that the plaintiffs’ units were illegally

cancelled by the defendant.

CS DJ No.337/2022 Santosh Kumari & Anr. Vs. M/s. Vardhman Properties Ltd. Page No. 18 of 50
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signed by
KULDEEP
KULDEEP NARAYAN
NARAYAN Date:

2025.08.23
14:03:11
+0530
District Judge-02,
South-East, Saket
Final Arguments:

17. I heard final arguments advanced by Sh. O.P. Gupta, learned

counsel for the plaintiffs and Sh. Naveen Dabas, learned counsel

for the defendant. During the course of arguments, learned

counsel for plaintiff contended that the defendant had started

demanding advance maintenance charges without handing over

the possession of the units to the plaintiffs. Further, the building

was not complete, so there was no question of handing over the

possession to the plaintiffs and therefore, no occasion arose to

demand maintenance charges from the plaintiffs. Learned counsel

for plaintiff further submitted that the plaintiffs filed the complaint

before the District Consumer Forum as well as RERA which were

not having jurisdiction to decide the claim and therefore, the

present suit was filed before the competent court of jurisdiction.

18. Per contra, learned counsel for defendant contended that the suit is

hopelessly barred by limitation and plaintiffs are not entitled for
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signed by
KULDEEP
KULDEEP NARAYAN
NARAYAN Date:

2025.08.23
14:03:18
+0530
District Judge-02,
South-East, Saket
any relief as they committed breach of terms and conditions of

Agreement dated 18.08.2007 in not making the payment of dues

and taking over possession of their units and accordingly, the

allotment of units was cancelled and 25% of total cost was

forfeited as per the Agreement.

19. Learned counsel for the plaintiffs relied upon Ketan Parekh v.

Special Director, Directorate of Enforcement and Anr., AIR 2012

SC 683, Commissioner, M.P. Housing Board and Ors. v. M/s.

Mohanlal and Company, AIR 2016 SC 3592, State of Manipur

and Ors. v. Koting Lamkang, (2019) 10 SCC 408, Ethopian

Airlines v. Ganesh Narain Saboo, AIR 2011 SC 3495 and M.P.

Steel Corporation v. Commissioner of Central Excise,(2015) 7

SCC 58. On the other hand, learned counsel for the defendant

relied upon Satish Batra v. Sudhir Rawal, (2013) 1 SCC 345. Both

the parties also filed brief written submissions.

Analysis & Findings:

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signed by
KULDEEP
KULDEEP NARAYAN
NARAYAN Date:

2025.08.23
14:03:28
+0530

District Judge-02,
South-East, Saket

20. Having heard the submissions and perused the material available

on record, my findings on the aforesaid issues, in a logical

sequence, are as under:

Issue No. 4

(4) Whether plaintiff is entitled to benefit of Section 14 of The

Limitation Act? OPP

21. During the course of arguments, learned counsel for the defendant

contended that the present suit is hopelessly barred by law of

limitation for the reason that the cause of action firstly arose on

30.12.2009 when the defendant demanded maintenance charges

from the plaintiffs, whereas the present suit was filed on

05.04.2022 i.e., after more than 12 years three months

approximately.

22. Per contra, learned counsel for the plaintiffs contended that

plaintiffs bona-fide and in good faith, had been prosecuting the

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signed by
KULDEEP
KULDEEP NARAYAN
NARAYAN Date:

2025.08.23
14:03:33
+0530

District Judge-02,
South-East, Saket
claim before the District Forum and RERA which were not

having jurisdiction to decide the claim. Further, the time during

which proceedings were pending before District Forum and

RERA shall be excluded under Section 14 of the Limitation Act,

1963, and therefore the suit was filed within limitation period in

the competent Court.

23. Here, it is apposite to extract relevant portion of Section 14 of the

Limitation Act, 1963 which is as under:-

14. Exclusion of time of proceeding bona fide in

court without jurisdiction –

(1) In computing the period of limitation for any suit the
time during which the plaintiff has been prosecuting
with due diligence another civil proceeding, whether in
a court of first instance or of appeal or revision, against
the defendant shall be excluded, where the proceeding
relates to the same matter in issue and is prosecuted in
good faith in a court which, from defect of jurisdiction
or other cause of a like nature, is unable to entertain it.

CS DJ No.337/2022 Santosh Kumari & Anr. Vs. M/s. Vardhman Properties Ltd. Page No. 22 of 50
Digitally signed
by KULDEEP
KULDEEP NARAYAN
NARAYAN Date:

2025.08.23
14:03:40 +0530

District Judge-02,
South-East, Saket
(2) xxxxxxxxxxxxxxx

(3) xxxxxxxxxxxxxxx

Explanation: For the purposes of this section,-

(a) in excluding the time during which a former civil
proceeding was pending, the day on which that
proceeding was instituted and the day on which it ended
shall both be counted;

(b) a plaintiff or an applicant resisting an appeal shall be
deemed to be prosecuting a proceeding; and

(c) misjoinder of parties or of causes of action shall be
deemed to be a cause of a like nature with defect of
jurisdiction.

24. In Consolidated Engineering Enterprises v. Principal Secretary

Organization Department, (2008) 7 SCC 169, the principles

pertaining to applicability of Section 14 of the Limitation Act

were discussed extensively by the Hon’ble Supreme Court and

following was laid down:-

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KULDEEP NARAYAN
NARAYAN Date:

2025.08.23
14:03:50
+0530
District Judge-02,
South-East, Saket
Section 14 of the Limitation Act deals with exclusion of time
of proceeding bona-fide in a Court without jurisdiction. On
analysis of the said section, it becomes evident that the
following conditions must be satisfied before Section 14 can
be pressed into service:

(1) Both the prior and subsequent proceedings are civil
proceedings prosecuted by the same party;

(2) The prior proceeding had been prosecuted with due
diligence and in good faith;

(3) The failure of the prior proceeding was due to defect of
jurisdiction or other cause of like nature;

(4) The earlier proceeding and the latter proceeding must
relate to the same matter in issue; and

(5) Both the proceedings are in a Court.”

25. It was also laid down by the Apex Court that the provisions of

this Section must be interpreted and applied in a manner that

furthers the cause of justice, rather than aborts the proceedings at

hand and the time taken diligently pursuing a remedy in a wrong

Court, should be excluded.

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KULDEEP NARAYAN
NARAYAN Date:

2025.08.23
14:03:59
+0530
District Judge-02,
South-East, Saket

26. Similarly, in M.P. Steel Corporation v. Commissioner of Central

Excise, (2015) 7 SCC 58, the Apex Court discussed the phrases

“due diligence” and “in good faith” for the purposes of invocation

of Section 14 of the Limitation Act to observe that the said

phrases only mean that the party who invokes Section 14 should

not be guilty of negligence, lapse or inaction. Further, there

should be no pretended mistake intentionally made with a view to

delaying the proceedings or harassing the opposite party.

27. In P. Sarathy v. State Bank of India, (2000) 5 SCC 355, the Apex

Court made a distinction between “Civil Court” and “court” and

expanded the scope of Section 14 of the Limitation Act stating

that any authority or tribunal having the trappings of a Court

would be a “court” within the meaning of Section 14. Further, for

Section 14 to apply, two conditions have to be met- First, the

primary proceeding must be a suit, appeal or application filed in a

Civil Court and Second, it is only when it comes to excluding

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KULDEEP NARAYAN
NARAYAN Date:

2025.08.23
14:04:06
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District Judge-02,
South-East, Saket
time in an abortive proceeding that the word “Court” has been

expanded to include proceedings before the Tribunals.

28. As far as any Authority or Tribunal having the trappings of a Court

is concerned, long back, the Apex Court in Associated Cement

Companies Ltd. v. P. N. Sharma and Anr., 1965 AIR 1595 had

held that the requirements of procedure which is followed in

courts and the possession of subsidiary powers which are given

to courts to try the cases before them are described as trappings

of the courts, but the consideration about the presence of all or

some of the trappings of a court is really not decisive. The

presence of some of the trappings may assist the determination of

the question as to whether the power exercised by the authority

which possesses the said trappings, is the judicial power of the

State or not. The main and the basic test however, is whether the

adjudicating power which a particular authority is empowered to

exercise, has been conferred on it by a statute and can be

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KULDEEP NARAYAN
NARAYAN Date:

2025.08.23
14:04:12
+0530

District Judge-02,
South-East, Saket
described as a part of the State’s inherent power exercised in

discharging its judicial function. Thus, it should be constituted by

the State and it should be invested with any part of the judicial

functions of the State but should not discharge purely

administrative or executive duties. Further, the other incidents of

the investiture of the ‘trappings of a court’ are authority to

determine matters in cases initiated by parties, sitting in public,

power to compel attendance of witnesses and to examine them on

oath. In fact, such authority or tribunal is under a duty to act

judicially.

29. In view of above-mentioned legal propositions, there is no doubt

that a District Forum constituted under Section 9 of the Consumer

Protection Act,1986 (now repealed by the Consumer Protection

Act, 2019 which came into effect on 20.07.2020) and RERA

constituted under Section 20 (1) of the Real Estate (Regulation &

Development) Act, 2016, are having trappings of a Court.

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KULDEEP NARAYAN
NARAYAN Date:

2025.08.23
14:04:19
+0530
District Judge-02,
South-East, Saket

30. A bare perusal of provisions of the Consumer Protection Act,1986

like Section 12 (Manner in which complaint shall be made),

Section 13 (Procedure on admission of complaint), Section 13 (4)

(same powers as are vested in a Civil Court under the Code of

Civil Procedure, 1908 in respect of summoning and enforcing the

attendance of any person and examining them on oath; the

discovery and production of any document or other material

object producible as evidence; the reception of evidence on

affidavits; the requisitioning of the report of the concerned

analysis or test from the appropriate laboratory or from any other

relevant source and issuing of any commission for the

examination of any witness.), Section 13 (5) (proceedings before

the District Forum are deemed to be a judicial proceeding within

the meaning of Sections 193 and 228 of the Indian Penal Code,

1860 and District Forum is deemed to be a Civil Court for the

purposes of Section 195 and Chapter XXVI of the Code of

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KULDEEP NARAYAN
NARAYAN Date:

2025.08.23
14:04:27
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District Judge-02,
South-East, Saket
Criminal Procedure, 1973.), Section 14 (Findings of the District

Forum), Section 25 (Enforcement of orders) and Section 27

(Penalties) would leave no doubt that District Forum was having

all the trappings of a court. Furthermore, Section 27 (2) conferred

the powers of Judicial Magistrate first class for the trial of

offences under the Act while deeming it to be Judicial Magistrate

first class for the purpose of Code of Criminal Procedure, 1973.

31. Similarly, provisions of the Real Estate (Regulation &

Development) Act, 2016, like Section 31 (Filing of complaints),

Section 34 (Functions of Authority), Section 35 (Power to call for

information, conduct investigations), Section 35 (2) (Powers of

Civil Court in certain respects as enumerated therein), Section 36

(Power to issue interim orders), Section 37 (Powers to issue

directions) and Section 38 (Power to impose penalty or interest)

amply demonstrate the quasi-judicial nature of RERA. The

authoritative pronouncement by the Hon’ble Supreme Court vide

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KULDEEP NARAYAN
NARAYAN Date:

2025.08.23
14:04:34 +0530
District Judge-02,
South-East, Saket
judgment dated 11.11.2021 in Civil Appeal No(s) 6745-6749 of

2021 titled as M/s. Newtech Promoters and Developers Pvt. Ltd.

v. State of U.P. and Ors., also dealt elaborately with the quasi-

judicial nature of RERA, besides other issues.

32. In view of afore-discussed legal propositions, it is evident that

provisions stipulated under Section 14 of the Limitation Act,

1963 are applicable to the proceedings conducted before the

District Forum as well RERA.

33. As per the aforementioned testimonies and material available on

record, it is evident that both the plaintiffs jointly booked two

units being unit no. T-96 & T-97 in Vardhman Central Mall,

L.S.C., Nehru Vihar, Delhi and Agreement dated 18.08.2007

Ex.PW-1/1 was executed between both the parties. The defendant

sent Letter dated 30.12.2009 Ex. PW-1/2B whereby plaintiffs

were requested to take the possession of their units on or before

31.01.2010 after making payment of the balance dues amounting
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KULDEEP NARAYAN
Date:

NARAYAN 2025.08.23
14:04:41
+0530

District Judge-02,
South-East, Saket
to Rs.11,96,103/- as well as maintenance charges amounting to

Rs.1,86,628/-. The plaintiffs instead sent Legal Notice dated

09.11.2010 Ex. PW-1/3, demanding back their deposited amount

which was replied by the defendant vide Reply/Notice dated

11.11.2010. Plaintiffs filed complaint before the District Forum

on 08.12.2010.

34. It is, therefore, clear that the cause of action to seek recovery of

the amount deposited with the defendant arose when Legal Notice

dated 09.11.2010 Ex. PW-1/3 was sent by the plaintiffs

consequent upon which plaintiffs filed complaint before the

District Forum.

35. The said complaint was withdrawn on 10.08.2018 vide certified

copy of order Ex. PW-1/4 of the District Forum.

36. Thereafter, plaintiffs filed complaint before the Real Estate

Regulatory Authority (RERA) which was dismissed vide order

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KULDEEP NARAYAN
NARAYAN Date:

2025.08.23
14:04:47
+0530

District Judge-02,
South-East, Saket
dated 11.04.2019 Ex. PW-1/5.

37. Thereafter, presumably under Section 12A of the Commercial

Courts Act, 2015, plaintiffs filed an application before the South-

East District Legal Services Authority for pre-institution

mediation on 27.07.2020, but the defendant did not participate in

the mediation process vide Non-Starter Report dated 17.12.2020

Ex. PW-1/6.

38. Consequently, plaintiffs filed the present suit for recovery under

Section 6 of the Commercial Courts Act, 2015 on 05.04.2022

which was transferred to this Court vide order dated 08.02.2023

passed by the learned Principal District & Sessions Judge, South-

East District, Saket Courts, New Delhi after withdrawing the

same from the Court of learned District Judge, (Commercial)

(Digital Court-07) South-East District, Saket Courts, New Delhi

as the dispute was not a commercial dispute as defined under

Section 2 (1) (c) of the Commercial Courts Act, 2015.

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                                                                              KULDEEP    NARAYAN
                                                                              NARAYAN    Date:
                                                                                         2025.08.23
                                                                                         14:04:53
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                                                                               District Judge-02,
                                                                               South-East, Saket

39. In the afore-mentioned facts and circumstances, it is evident that

the plaintiffs had been prosecuting civil proceedings against the

defendant with due diligence and in good faith before the District

Forum and RERA which were not entertained due to defect of

jurisdiction. In my considered opinion, all the five conditions as

laid down in Consolidated Engg. (supra) case are met and

plaintiffs, under Section 14 of the Limitation Act, 1963, are

entitled to claim exclusion of time so spent before the District

Forum and RERA in computing the period of limitation for filing

the present suit.

40. As observed above, plaintiffs filed complaint before the District

Forum on 08.12.2010 which was withdrawn on 10.08.2018.

Thereafter, complaint was filed before RERA on 24.09.2018

which was dismissed on 11.04.2019. Therefore, the aforesaid

period stands excluded under Section 14 of the Limitation Act,

1963 for the purpose of computation of period of limitation for

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KULDEEP NARAYAN
Date:

NARAYAN 2025.08.23
14:05:01
+0530

District Judge-02,
South-East, Saket
filing the present suit.

41. The issue is decided in favour of the plaintiffs.

Issue No. 3

(3) Whether suit of the plaintiff is within the limitation? OPP

42. As observed above, the cause of action to institute the present suit

for recovery had arisen on 09.11.2010. As per Article 113 in the

Schedule of the Limitation Act, 1963, prescribed period of

limitation for filing the suit is three years which begins to run

when the right to sue accrues.

43. Vide findings on issue no. 4, the period w.e.f. 08.12.2010 to

10.08.2018 and period w.e.f. 24.09.2018 to 11.04.2019 stand

excluded under Section 14 of the Limitation Act, 1963.

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KULDEEP
KULDEEP NARAYAN
NARAYAN Date:

2025.08.23
14:05:08
+0530

District Judge-02,
South-East, Saket

44. After 11.04.2019, plaintiffs filed an application on 27.07.2020

before the South-East District Legal Services Authority under

Section 12A of the Commercial Courts Act, 2015, for pre-

institution mediation however, the defendant did not participate in

the mediation process vide Non-Starter Report dated 17.12.2020

Ex. PW-1/6 consequent upon which the present suit was filed on

05.04.2022.

45. As stipulated under second Proviso appended to Section 12A (3)

of the said Act, the period during which the parties remained

occupied with the pre-institution mediation shall not be computed

for the purpose of limitation under the Limitation Act, 1963.

46. It is, thus, clear that after accrual of cause of action on

09.11.2010, the period w.e.f. 08.12.2010 to 10.08.2018 (7 years 8

months 4 days) and from 24.09.2018 to 11.04.2019 (6 months 18

days) stand excluded under Section 14 of the Limitation Act,

1963. Further, the period w.e.f. 27.07.2020 to 17.12.2020 (4
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KULDEEP NARAYAN
NARAYAN Date:

2025.08.23
14:05:15
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District Judge-02,
South-East, Saket
months 22 days) stands excluded under second Proviso appended

to Section 12A (3) of the Commercial Courts Act, 2015.

47. From the date of accrual of cause of action i.e. 09.11.2010 till the

date of filing of the suit on 05.04.2022, total period spent is 11

years 4 months 27 days out of which aforesaid total period of 8

years 7 months 14 days stand excluded.

48. Therefore, the present suit filed on 05.04.2022 is within limitation

period of three years in terms of Article 113 in the Schedule of the

Limitation Act, 1963.

49. The issue is decided in favour of the plaintiffs.

Issue No.5

Whether the plaintiff committed breach of terms and condition of the

Flat Buyer Allotment Agreement dated 18.08.2007, if yes, its effect.

OPD

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KULDEEP NARAYAN
NARAYAN Date:

2025.08.23
14:05:23
+0530
District Judge-02,
South-East, Saket

50. The onus to prove this issue was placed upon the defendant. To

discharge the same, Mr. Udesh Kumar (DW-1) deposed that he

was authorized vide Board Resolution to depose in the present

case. Board Resolution was filed on 17.11.2022 on record. He

further deposed that the Agreement dated 18.08.2007 Ex. PW-1/1

was executed between the plaintiffs and the defendant in respect

of two units i.e., units no. T-96 & T-97 in Vardhman Central Mall,

L.S.C., Nehru Vihar, New Delhi whereby plaintiffs agreed to

abide by the terms and conditions of the said Agreement and

agreed to pay allied charges of Rs.2,57,983/- which was payable

at the time of offering of the possession. Further, after completion

of the construction, the defendant offered the plaintiffs to take

possession of their units on 30.12.2009 and also demanded

balance dues amounting to Rs.11,96,103/- alongwith sum of

Rs.1,86,628/- towards advance maintenance charges for three

years which was agreed as per the said Agreement. However, the

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KULDEEP NARAYAN
NARAYAN Date:

2025.08.23
14:05:32
+0530

District Judge-02,
South-East, Saket
plaintiffs did not come forward to clear the dues despite various

written requests made by the defendant.

51. DW-1 further deposed that since the plaintiffs failed to perform

their contractual obligations, the defendant was left with no

alternative but to cancel the allotment of the said two units vide

Letter dated 31.10.2011 Ex. DW-1/K. Further, as per the agreed

terms and conditions of Agreement Ex. PW-1/1, defendant

refunded a sum of Rs.2,93,163/- vide cheque no.286258 dated

31.10.2011 drawn on State Bank of Mysore, Nehru Place, New

Delhi to the plaintiffs after forfeiting 25% of the total cost on

account of non-payment of installments.

52. The execution of Agreement Ex. PW-1/1 is not in dispute. As per

the ‘Schedule of Installment’ contained therein, a sum of

Rs.2,34,000/- was to be paid at the time of booking and balance

amount was to be paid on or before the offer of possession

alongwith allied charges of Rs.2,57,983/-. Further, as per the
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KULDEEP NARAYAN
NARAYAN Date:

2025.08.23
14:05:38
+0530

District Judge-02,
South-East, Saket
terms under the head ‘Payment of Common Service Charges etc.,’

the plaintiffs agreed to pay service and maintenance charges in

advance after notice to take possession is sent to them. It was also

agreed that the defendant will maintain the building only upto 36

months from the date of offering the possession. Further, the

prescribed common maintenance and service charges were agreed

to be @ Rs.120/- per square feet per year which was to be paid in

advance. The Agreement also contained a clause under the head

‘Possession only after Full payment’ which stipulated that under

no circumstances, the possession of the property shall be given

unless and until all payment required has been made. Further, as

soon as the unit is notified by the Promoters as complete and

ready for occupation, the Buyer shall pay all arrears demanded by

the Promoters within ten days of the registered notice served

individually upon him.

53. Regarding completion of building and handing over the

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KULDEEP NARAYAN
NARAYAN Date:

2025.08.23
14:05:45
+0530

District Judge-02,
South-East, Saket
possession, no definite date was agreed and handing over of

possession was subject to payment, availability of building

material and other compliances, etc. by the municipal authorities.

It was also stipulated that the defendant will only apply for

Completion Certificate.

54. Vide Letter dated 30.12.2009 Ex. PW-1/2B, the defendant offered

possession of units to the plaintiffs after payment of dues of

Rs.11,96,103/- and maintenance charges including service tax for

the period 01.04.2010 to 31.03.2013 amounting to Rs.1,86,628/-

on or before 31.01.2010. However, the plaintiffs sent Legal

Notice dated 09.11.2010 Ex. PW-1/3, alleging illegal demand of

maintenance charges and other charges without handing over

possession.

55. During the cross-examination, PW-1 was asked about the terms

of Agreement Ex. PW-1/1 regarding payment of maintenance

charges @ Rs.120/- per square feet in advance, to which she
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KULDEEP
KULDEEP NARAYAN
NARAYAN Date:

2025.08.23
14:05:51
+0530

District Judge-02,
South-East, Saket
replied that she had not read the terms and conditions in detail at

the time of putting her signatures. On further cross-examination,

PW-1 stated that payment of allied charges of Rs.2,57,983/- as

mentioned in Schedule of Installment in Agreement Ex. PW-1/1

was not made because plaintiffs were not interested in continuing

with the deal and wanted their amount refunded.

56. PW-1 was also confronted with Letters Ex. PW-1/DX-1 to

Ex.PW-1/DX-11 which she refused to have received or served

upon the plaintiffs. PW-1 further admitted that the address

mentioned on the aforesaid letters i.e. 9-B, Vikrant Apartments,

Sector 13, Rohini, Delhi-110085 was their correct address though

she voluntarily said that the said flat belonged to her mother and

was lying vacant since 2010. She further denied that the

defendant had sent cheque of Rs.2,93,163/- on 31.10.2011 on the

address of aforesaid flat. Admittedly, plaintiffs never informed the

defendant about shifting from the aforesaid flat nor their present

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KULDEEP NARAYAN
NARAYAN Date:

2025.08.23
14:05:58
+0530
District Judge-02,
South-East, Saket
address was informed to the defendant.

57. It is also clear from the Legal Notice Ex. PW-1/3 that the

plaintiffs demanded refund of Rs.7,03,590/- with interest alleging

that the defendant had started demanding illegal amount towards

maintenance charges and other charges without handing over the

possession to them. However, as observed above, advance

payment of maintenance charges and service charges was duly

agreed by the plaintiffs vide Agreement Ex.PW-1/1.

58. As far as offer of possession of the units made by the defendant

vide Letter Ex. PW-1/2B dated 30.12.2009 and payment of

maintenance charges of Rs.1,86,628/- is concerned, it is clear

from the Occupancy Certificate Ex. DW-1/L that the defendant

had applied for Occupancy Certificate by sending Notice of

Completion dated 14.01.2010 to DDA consequent upon which the

aforesaid Occupancy Certificate dated 12.04.2010 Ex. DW-1/L

was issued.

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KULDEEP
KULDEEP NARAYAN
NARAYAN Date:

2025.08.23
14:06:05
+0530
District Judge-02,
South-East, Saket

59. It is thus clear that the defendant offered possession of the units to

the plaintiffs to be taken on or before 31.01.2010 after making

payment of balance dues and completing other documentary

formalities. The defendant also applied for Occupancy Certificate

vide Notice of Completion dated 14.01.2010. A number of

reminders vide Letter dated 26.02.2010 Ex. DW-1/A to Letters

dated 20.12.2010 Ex. DW-1/J were sent to the plaintiffs, but to no

avail and resultantly the allotment of units was cancelled by the

defendant vide Letter dated 30.10.2011 Ex. DW-1/K. It is thus

clear that at the time of cancellation of allotment of units, the

building was complete for possession well before the said date.

60. In the afore-discussed facts and circumstances, it is clear that the

plaintiffs committed breach of agreed terms and conditions of

Agreement Ex. PW-1/1 in not making payment of advance

maintenance charges and common service charges for obtaining

possession of their units. No plausible or cogent reason could be

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KULDEEP NARAYAN
NARAYAN Date:

2025.08.23
14:06:11
+0530
District Judge-02,
South-East, Saket
brought on record by the plaintiffs for not making payment of

advance maintenance and common service charges as demanded

by the defendant and therefore, the cancellation of allotment of

units vide Letter Ex. DW-1/K dated 31.10.2011 was in terms of

the Agreement Ex. PW-1/1.

61. As far as forfeiture of 25% of total cost deposited with the

defendant is concerned, in Satish Batra (supra) case, the Apex

Court referred the case titled as Shree Hanuman Cotton Mills v.

Tata Air Craft Ltd. (1969) 3 SCC 522 wherein, considering the

scope of the term “earnest”, certain principles were laid down

which are extracted as under:

“21. From a review of the decisions cited above, the

following principles emerge regarding ‘earnest’:

(1) It must be given at the moment at which the
contract is concluded.

(2) It represents a guarantee that the contract will

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KULDEEP NARAYAN
NARAYAN Date:

2025.08.23
14:06:17
+0530

District Judge-02,
South-East, Saket
be fulfilled or, in other words, “earnest” is given
to bind the contract.

(3) It is part of the purchase price when that
transaction is carried out.

(4) It is forfeited when the transaction falls
through by reason of the default or failure of the
purchaser.

(5) Unless there is anything to the contrary in
the terms of the contract, on default committed
by the buyer, the seller is entitled to forfeit the
earnest.”

62. In this regard, it is noteworthy that in Agreement Ex. PW1/1,

under the head ‘Schedule of Installment’, it was agreed if no

payment is received within the stipulated period given in the

Installment Call Notice, the allotment will be cancelled and the

whole of earnest money i.e. 25% of the total cost of the unit

already received will be forfeited and only the balance amount

will be refunded without any interest. Similarly, under the head

‘Completion of Building’, it was agreed that in case the building

does not get completed or the space to be acquired by the buyer is

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KULDEEP NARAYAN
NARAYAN Date:

2025.08.23
14:06:23
+0530
District Judge-02,
South-East, Saket
not constructed, amount received by the Promoters shall be

refunded to the buyer without interest.

63. Thus, it is apparent that the amount of Rs.7,03,590/- deposited

with the defendant was ‘earnest money’ which, as per the terms of

Agreement, was to ensure fulfillment of terms of Agreement by

the plaintiffs.

64. Accordingly, forfeiture of 25% of the total cost of Rs.16,41,710/-

on account of non-payment by the plaintiffs was also in terms of

the aforesaid Agreement which was duly communicated to the

plaintiffs. Upon perusal of Letter Ex. PW-1/K, it is also evident

that the cancellation of units was without prejudice to the

complaint pending before the District Forum which indicate that

defendant was aware about the proceedings pending before the

District Forum and therefore the fact of cancellation of units

would certainly have been brought to the notice of the plaintiffs.

CS DJ No.337/2022 Santosh Kumari & Anr. Vs. M/s. Vardhman Properties Ltd. Page No. 46 of 50
Digitally
signed by
KULDEEP
KULDEEP NARAYAN
NARAYAN Date:

2025.08.23
14:06:29
+0530
District Judge-02,
South-East, Saket

65. The defendant successfully discharged the onus placed on it and

therefore this issue is decided in favour of the defendant.

Issue No.1

Whether plaintiff is entitled to decree for a sum of Rs.17 Lakhs as
prayed? OPP

66. The onus to prove this issue was placed upon the plaintiffs.

Plaintiffs claimed refund of total amount of Rs.17,00,342/- i.e.,

principal amount of Rs.7,03,590/- alongwith interest @ 10% per

annum w.e.f. 01.10.2007 to 30.11.2021 amounting to

Rs.10,97,600/- which was rounded off to Rs.17,00,000/-.

However, the calculation done by the plaintiffs is wrong as the

total claimed amount as per the plaintiffs comes to Rs.18,01,190/-

and not Rs.17,00,342/-.

67. In view of findings of issue no.5, it is evident that the fault lies on

the part of the plaintiffs in not taking over the possession of the

CS DJ No.337/2022 Santosh Kumari & Anr. Vs. M/s. Vardhman Properties Ltd. Page No. 47 of 50
Digitally
signed by
KULDEEP
KULDEEP NARAYAN
NARAYAN Date:

2025.08.23
14:06:36
+0530
District Judge-02,
South-East, Saket
units after making payment of balance dues and maintenance and

service charges in terms of Agreement Ex. PW-1/1. Accordingly,

the plaintiffs are not entitled to claim the aforesaid amount to

Rs.17,00,000/- from the defendant. Otherwise also, it was not

explained on what basis, interest @ 10% per annum amounting to

Rs.10,97,600/- was claimed which in itself, is more than the

principal amount of Rs.7,03,590/-. It is also clear in view of

findings of issues no. 3 & 4 that the delay in filing the suit

occurred due to the plaintiffs filing claims in wrong Forums to

seek recovery of the amount and therefore, the claim of interest

for the said entire duration is not justifiable.

68. Therefore, in my considered opinion, the plaintiffs are not entitled

to seek recovery of the claimed amount of Rs.17,00,000/- from

the defendant. However, as the defendant, after forfeiting 25% of

the total cost, had refunded a sum of Rs.2,93,163/- by way of

cheque dated 31.10.2011 and there is no material available on

CS DJ No.337/2022 Santosh Kumari & Anr. Vs. M/s. Vardhman Properties Ltd. Page No. 48 of 50
Digitally
signed by
KULDEEP
KULDEEP NARAYAN
NARAYAN Date:

2025.08.23
14:06:41
+0530
District Judge-02,
South-East, Saket
record to indicate if the aforesaid cheque was ever encashed by

the plaintiffs, in the given circumstances, the plaintiffs are entitled

to receive the aforesaid amount of Rs.2,93,163/- only from the

defendant.

69. The issue is accordingly decided.

Issue No.2

Whether the plaintiff is entitled to interest, if yes, at what rate and for
which period? OPP

70. In view of findings on the aforesaid issues, the plaintiffs are not

entitled to claim interest @ 10% per annum on the principal

amount of Rs.7,03,590/-, however, in the given facts and

circumstances, it will be reasonable if the plaintiffs are paid

interest @ 6% per annum on the aforesaid amount of

Rs.2,93,163/- from the date of filing of the suit i.e., 05.04.2022

till its realization.

CS DJ No.337/2022 Santosh Kumari & Anr. Vs. M/s. Vardhman Properties Ltd. Page No. 49 of 50
Digitally
signed by
KULDEEP
KULDEEP NARAYAN
NARAYAN Date:

2025.08.23
14:06:48
+0530

District Judge-02,
South-East, Saket

71. The issue is accordingly decided.

Relief:

72. In view of my issue-wise findings, the suit is partly decreed. The

defendant is directed to pay the sum of Rs.2,93,163/- to the

plaintiffs alongwith interest @ 6% per annum from the date of

filing of the present suit i.e., 05.04.2022 till its realization.

Decree-Sheet be prepared accordingly.

73. File be consigned to Records after necessary compliance.

Digitally
signed by
KULDEEP
(Announced in open KULDEEP NARAYAN
NARAYAN Date:

         Court on 23.08.2025)                                             2025.08.23
                                                                          14:06:56
                                                                          +0530
                                                              (Kuldeep Narayan)
                                                            District Judge-02, (S-E),
                                                              Court Room No.615,
                                                            Saket Courts, New Delhi




CS DJ No.337/2022   Santosh Kumari & Anr. Vs. M/s. Vardhman Properties Ltd.     Page No. 50 of 50




                                                                                 District Judge-02,
                                                                                 South-East, Saket
 



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