Second-Hand flat owners have the same rights: says SC

An urgent matter concerning the rights of a second-hand flat owner was recently argued in the Supreme Court. The case was put forward for consideration before the 3-Judges bench of the apex court. The decision was ruled out in favor of the second-hand flat owners.

The court said that a builder cannot deny the rights of owners to possession within a reasonable period, else they must be entitled to a full refund. A bench of Justice UU Lalit, Justice Hemant Gupta and Justice S Ravindra Bhat ruled that the rights of second-hand flat owners or buyers are the same as that of original allottees.

The bench also cited the statement of objects and reasons under the consumer protection act that explores inter-alia to promote and preserve the rights of all consumers.

Rights referred under the consumer protection act
  • Right to stay protected against marketing of goods hazardous to life and property
  • Right to be notified about the quantity, quality, control, purity, specifications, and value of goods to shield consumers against unfair trades
  • Right to be assured where permissible, access to goods at competing rates
  • Right to be heard and assured that consumer’s interests will receive due consideration at appropriate forums
  • Right to seek redressal against unfair trades or unscrupulous consumer exploitation
  • Right to consumer education

The importance of the Consumer Protection Act lies in promoting the welfare of society by enabling its consumers to participate directly in the market economy. The act also attempts to remove the helplessness of consumers against powerful businesses.

The Consumer Protection Act is considered a milestone that is directed towards achieving public interest.

Second-Hand flat owners have same rights as original owners

The plea was initially filed by the real estate company against the National Consumer Disputes Redressal Commission (NCDRC) order. The order concerned the delay of possession handing to the second-hand flat owners while directing the company to refund the amount. The real estate company then challenged this order further in the Supreme Court stating that the paid amount cannot be refunded since the second-hand buyer is not the original allottee.

The SC bench addressed the matter stating, “The buyer has agreed to purchase the flat with an expectation of receiving the possession within a reasonable time. Therefore, the buyer reserves the right to claim a refund like the original allottee.”

The bench also referred to the rights under the Consumer Protection Act in the Indian constitution. The ruling is said to be a major relief for the second-hand flat owners. The court finally ruled against the real estate company for favoring consumers.

Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. PropertyPistol does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.

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