1999 (8) TMI 992 - SC - Indian Laws

Summary

Issues Involved:
The issues involved in this case are the deficiency in service by developers, the validity of the claim petition filed beyond the prescribed time limit, the continuation of cause of action, the substitution of agreements, and the legal remedy available to the respondents.

Deficiency in Service:
The respondents filed a complaint against the developers for failing to provide a flat as promised under a written agreement. The National Commission decreed the claim in favor of the respondents for a sum of money, interest, and compensation for pain and suffering.

Validity of Claim Petition:
The appellants contended that the claim was time-barred as it was filed beyond the prescribed period. However, the Commission held that since the rights under the original agreement were not given up, there was a continuing cause of action, and the claim was not beyond time.

Continuation of Cause of Action:
The second agreement did not extinguish the rights under the original agreement. The appellants were under an obligation to provide a flat, and the respondents could legally claim specific performance of the original agreement as the amount was not paid as stipulated in the subsequent contract.

Substitution of Agreements:
The appellants argued that the new agreement substituted the original contract, and the respondents should approach the civil court for recovery. However, the Commission rejected this plea, citing the principle of novation of contract and the fact that the rights under the original agreement were not extinguished.

Legal Remedy Available:
The respondents were justified in claiming deficiency in service as the appellants failed to provide evidence to support their case. The Commission's decree was upheld as the entire amount due had been paid to the respondents, including interest, and the appeal was dismissed.

In conclusion, the Supreme Court upheld the National Commission's decision, emphasizing the importance of honoring contractual obligations and providing legal remedies for cases of deficiency in service.