Supreme Court clarified that Consumer Forums are not bound by one side clauses in the Contracts and they can grant higher interest
Shubham Budhiraja [1] The Homebuyers filed a consumer complaint against Builder. The NCDRC directed the Builder to handover the possession after obtaining the occupancy certificate with interest as compensation. The Builder challenged the same before the Hon’ble Supreme Court on the ground that NCDRC has exceeded its jurisdiction by granting beyond the contract. The Hon’ble Supreme Court held as under: 1. The jurisdiction of the consumer fora is traceable not merely to the contractual terms agreed between the parties but to the statute itself. Sections 12 and 22 of the Act empower the consumer fora, including the NCDRC to adjudicate complaints relating to deficiency in service and to grant appropriate reliefs. 2. Section 22 expressly incorporates the powers under Sections 12, 13 and 14, thereby enabling the NCDRC to issue directions and award compensation for loss or injury caused to a consumer. The...