Developers can't force one-sided agreements: SC

15 Jan 2021 CW Team

The Supreme Court has observed that homebuyers cannot be compelled by real estate developers by one-sided contractual terms in the sale agreement. The apex court held that unreasonable clauses in the agreement indicate an unfair trade practice as per Consumer Protection Act (CPA).

The court also noted that there were several clauses in the agreement that reflected entirely one-sided terms of the apartment buyer's agreement, that are wholly loaded in favour of the developer, and against the allottee.

On the issue of whether provisions of RERA be given primacy over CPA, 1986, the court was of the opinion that in case there are two concurrent remedies available, and the aggrieved party chooses to exercise one, they lose the right to simultaneously exercise the other for the same cause of action.

The CPA 1986 was enacted to protect consumers' interests and provide a way for better protection of consumer interest, including the right to seek redressal against unfair trade practices or unscrupulous exploitation, the court said.

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