- 1 - HC-KAR CNR: KAHC010070232025 NC: 2026:KHC:46216-DB WP No. 3719 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 27TH DAY OF AUGUST, 2026 PRESENT THE HON'BLE MR. JUSTICE D K SINGH AND THE HON'BLE MR. JUSTICE H.SHANTHI BHUSHAN WRIT PETITION NO. 3719 OF 2025 (GM-CON) BETWEEN: 1. RAM PRATAP RAI SON OF MR.DIGVIJAY RAI, AGED ABOUT 42 YEARS, RESIDING AT FLAT NO. 402, BLOCK-11, LUSTRE BUILDING SUNCITY APARTMENTS, IBLUR, SARJAPUR OUTER RING ROAD JUNCTION, BENGALURU - 560 102. …PETITIONER (BY SRI. ANKITH S REDDY., ADVOCATE) AND: 1. M/S SNR SQUARE (P) LTD REGD. OFFICE AT NO.411, 4TH FLOOR, B.M SERENITY, 24TH MAIN, HSR LAYOUT, OPP. BESCOM SUB STATION, SECTOR-2, BOMMANAHALLI, BENGALURU - 560068 REP. BY ITS MANAGING DIRECTOR MR. RAJDEEP DEY SON OF MR. RUPENDRA CHANDRA DEY, AGED ABOUT 44 YEARS, Digitally signed by VASANTHA KUMARY B K Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR CNR: KAHC010070232025 NC: 2026:KHC:46216-DB WP No. 3719 of 2025 OFFICE AT: NO. 484, 1ST FLOOR, 17TH CROSS, 27TH MAIN, SECTOR-2, HSR LAYOUT, BENGALURU - 560102 2. MR. SATHISH KUMAR SALES MANAGER, M/S SNR SQUARE (P) LTD. OFFICE AT: NO. 484, 1ST FLOOR, 17TH CROSS, 27TH MAIN, SECTOR-2, HSR LAYOUT, BENGALURU - 560102 3. MR. HEMANT KAPOOR, SON OF LATE. MR. OM PRAKASH KAPOOR, AGED ABOUT 59 YEARS, RESIDING AT NO.77, J BLOCK DIAMOND DISTRICT, OLD AIRPORT ROAD, BENGALURU 560017 4. MR. M. RAJENDRAN, SON OF MR. MUTHU, AGED ABOUT 54 YEARS, RESIDING AT NO.405, SMR HERITAGE, 3RD CROSS, NEW THIPPASANDRA, BENGALURU 560075. 5. MR. S.P KUMAR, SON OF MR. S.D. PURSHOTHAM, AGED ABOUT 57 YEARS, RESIDING AT NO.710, FERN PARADISE, DODDANAKUNDI OUTER RING ROAD, BENGALURU 560 037 6. MR. MUNIGOVINDARAJU, SON OF LATE. MR. M. KRISHNAPPA, AGED ABOUT 70 YEARS, - 3 - HC-KAR CNR: KAHC010070232025 NC: 2026:KHC:46216-DB WP No. 3719 of 2025 RESIDING AT NO.6, SRI RAMALINGA CHOWDESHWARINILAYA, 12TH CROSS, SAMPANGIRAMNAGAR, BENGALURU 560 027 7. SMT.D. VASANTHI WIFE OF MR. R. SAMPATH KUMAR, AGED ABOUT 57 YEARS, RESIDING AT NO.17, MARIAMMAN KOIL STREET, GANDHIPET, VELLORE DISTRICT, TIRUPOOR, 635 601 TAMIL NADU 8. SMT. V. R. CHITRA WIFE OF MR. V.K.RAMESHBABU, AGED ABOUT 53 YEARS, RESIDING AT NO. 1727, VASANTHA COLONY, 18TH MAIN ROAD, ANNANAGAR (WEST), CHENNAI 600 040, TAMIL NADU. 9. MR.SHIVAKUMAR BHAVIKATTI SON OF MR. LAKSHMAPPA BHAVIKATTI, AGED ABOUT 47 YEARS, RESIDING AT FLAT NO. A-103, SNR SILVER RIPPLES APARTMENT, TRINITY HOMESTEAD LAOUT, SOMPURA GATE, SARJAPUR ROAD, BENGALURU 560 125. 10. SMT. ASHARANI BHAVIKATTI WIFE OF MR. SHIVAKUMARBHAVIKATTI, AGED ABOUT 37 YEARS, RESIDING AT FLAT NO. A-103, SNR SILVER RIPPLES APARTMENT, TRINITY HOMESTEAD LAYOUT, - 4 - HC-KAR CNR: KAHC010070232025 NC: 2026:KHC:46216-DB WP No. 3719 of 2025 SOMPURA GATE, SARJAPUR ROAD, BENGALURU 560 125. …RESPONDENTS (BY SRI. MADHUSUDHANA G M., ADVOCATE FOR R1, R9 & R10; R3, R4, R5, R6, R8 ARE SERVED AND UNREPRESENTED) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO ISSUE A WRIT, ORDER OR DIRECTION IN THE NATURE OF CERTIORARI OR ANY OTHER WRIT SETTING ASIDE THE ORDER DATED 02/12/2024 IN THE PROCEEDINGS IN FIRST APPEAL NO.FA/868/2022 BEFORE THE HON'BLE NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION, (ANNEXURE-A) AND CONFIRM THE ORDER OF THE HONBLE KARNATAKA STATE CONSUMER DISPUTES REDRESSAL COMMISSION, BANGALORE DATED 05/02/2018 IN C.C.NO.CC/55/2018 (ANNEXURE-B), ETC. THIS PETITION, COMING ON FOR HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE D K SINGH and HON'BLE MR. JUSTICE H.SHANTHI BHUSHAN ORAL ORDER (PER: HON'BLE MR. JUSTICE D K SINGH) The present writ petition has been filed impugning the order dated 02.12.2024 passed by the National Consumer Disputes Resolution Commission, New Delhi (for short 'the NCDRC') in Appeal No.868/2022 by the respondent No. 1, i.e., the builder, against the order dated 05.08.2022 passed in - 5 - HC-KAR CNR: KAHC010070232025 NC: 2026:KHC:46216-DB WP No. 3719 of 2025 Complaint No.55/2018 by the State Consumer Redressal Commission, at Bangalore. 2. The petitioner entered into the Agreement of sale dated 27.04.2025 for the flat Bearing No.103, Block-A, SNR Silver Ripples, Trinity Home Stead Layout, Sompura Gate, Sarjapur Road, Bengaluru, with respondent No.1. 3. Thereafter, the parties entered into a construction agreement on 27.04.2015 and the petitioner paid a sum of Rs.23,16,413/- to the respondent No.1. The construction was to be completed on or before 31.07.2016 with a grace period of 3 months. 4. On 15.06.2017, petitioner was issued with a first and only demand notice after entering into the Agreement of Sale and Construction Agreement, claiming that the petitioner was to pay further sum of Rs.11,31,393/- including penalty amount of Rs.1,50,000/-. However, no explanation was offered for the said penalty amount despite the request made by the petitioner. It appears that the respondent had sold the said flat in favour of respondent Nos.9 and 10. When the petitioner - 6 - HC-KAR CNR: KAHC010070232025 NC: 2026:KHC:46216-DB WP No. 3719 of 2025 came to know about the fact that the flat for which he had entered into an Agreement of Sale and Construction Agreement with respondent No.1 was sold to some third parties i.e., respondent Nos.9 and 10. He filed an FIR in Crime No.23/ 2018, under Section 420 r/w 34 of Indian Penal Code on 17.01.2018. The said criminal case is still pending before the Competent Court. Besides filing FIR, the petitioner also filed complaint in CC No.55/2018 before the State Commission and the State Commission vide order dated 05.02.2018 allowed the complaint and directed the respondent No.1/Builder to refund the sum of Rs.23,16,413/- deposited by the petitioner with interest at the rate of 12% p.a. from the date of the deposit till realisation along with Rs.2,00,000/- compensation and to pay Rs.50,000/- towards litigation costs within 60 days from the date of the order. 5. Aggrieved by the said order passed by the State Commission, the respondent filed First Appeal No.868/2022 before the NCDRC. The NCDRC has passed the impugned order modifying the order of the State Commission by directing the refund of Rs.23,16,413/-. The National Commission has not - 7 - HC-KAR CNR: KAHC010070232025 NC: 2026:KHC:46216-DB WP No. 3719 of 2025 ordered any interest and compensation. The NCDRC's order is very cryptic and does not give reasons for modifying the order passed by the State Commission. 6. We have heard the learned counsel for the petitioner as well as learned counsel for the respondent-builder. 7. When the petitioner deposited his hard earned money in pursuance to the Agreement of sale and Construction on 27.04.2015 and the respondent No.1/Builder in violation of those agreements had sold the flat to third persons i.e. respondent Nos.9 and 10 and the petitioner was made to undertake litigation and incur costs, we do not find any justification in the order passed by the NCDRC to deny interest and damages to the petitioner. 8. We therefore, allow this petition and set aside the impugned order dated 02.12.2024 passed by the NCDRC. However, we modify the order dated 05.08.2022 passed by the State Commission, so far as the rate of interest is concerned. - 8 - HC-KAR CNR: KAHC010070232025 NC: 2026:KHC:46216-DB WP No. 3719 of 2025 9. Considering the facts and circumstances of the case, we pass the following :- ORDER a. The writ petition is allowed. b. The impugned order dated 02.12.2024 passed by the NCDRC is set aside. c. The respondent No.1 is directed to pay interest at the rate of 10% p.a. on Rs.23,16,413/- from 27.04.2015 till the date of deposit on 02.12.2025. d. The petitioner is entitled for compensation of Rs.2,00,000/- as awarded by the State Commission and litigation costs of Rs.50,000/-. e. The amount of interest, damages and costs to be paid within a period of four weeks from today by the respondent No.1/Builder. Sd/- (D K SINGH) JUDGE Sd/- (H.SHANTHI BHUSHAN) JUDGE NG CT: SN List No.: 1 Sl No.: 29