ValkyaEditorial

Tagged “unfair-trade-practice”

1 article on unfair-trade-practice.

Landmark JudgmentSupreme Court of India

IREO Grace Realtech (P) Ltd v. Abhishek Khanna: the one-sided-clause doctrine in apartment buyer's agreements and unfair trade practice under Section 2(1)(r) CPA 1986

On 11 January 2021 a two-judge bench of the Supreme Court — Justices Indu Malhotra and Indira Banerjee — held that one-sided clauses in an apartment buyer's agreement, heavily favouring the developer through asymmetric cancellation, token delay compensation and restricted refund rights, constitute 'unfair trade practice' within Section 2(1)(r) of the Consumer Protection Act, 1986. The allottee is not bound by such clauses; the developer cannot enforce one-sided forfeiture; the consumer forum has jurisdiction to refuse enforcement; and where the developer fails to deliver possession, the allottee is entitled to refund with interest. The judgment formalises the 'one-sided clause' doctrine first articulated in Wing Cdr Arifur Rahman Khan v. DLF Southern Homes (August 2020) and aligns with Emaar MGF v. Aftab Singh (2018) on the preservation of statutory remedies against private contractual ouster.

Valkya Editorial··15 min