Aug 9, 2024, 6:09 AM
Aug 9, 2024, 6:09 AM

Developer Must Sell Flat at 2008 Price Upheld by NCDRC

Highlights
  • NCDRC upholds order against Borivali developer to sell flat at 2008 rate.
  • Developer criticized for not fulfilling liabilities post-dissolved partnership.
  • MOFA act mandates developer to honor promised liabilities despite partnership status.
Story

In a significant ruling, the National Consumer Dispute Redressal Commission (NCDRC) has upheld the orders of the State Consumer Dispute Redressal Commission (SCDRC) directing a Borivali-based developer to fulfill his obligations to a customer who booked a flat in 2008. The developer, who received a booking amount of Rs 51,000, was ordered to sell the flat at the original rate of Rs 23 lakhs, despite his claims of being released from obligations due to a dissolved partnership. The case centers around G. Sunder, who booked a flat at Raheja Estate, Borivali (East), under the project ‘Bhoomi Breeze’ by Bhoomi Construction, a partnership firm. The SCDRC had previously removed one partner, Ramesh Mehta, from liability, leaving Akshay Doshi responsible for the transaction. Although Doshi issued a receipt for the booking amount, he failed to execute a formal agreement, prompting Sunder to seek redress from the commission. In its ruling, the NCDRC reprimanded Doshi for attempting to evade his responsibilities by citing the dissolution of the partnership. The commission emphasized that the Maharashtra Ownership Flats Act (MOFA) does not absolve partners from their obligations, even after a partnership is dissolved. The ruling reinforces the principle that partners remain accountable for commitments made during the partnership's existence, as outlined in the Indian Partnership Act.

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