Reliance On Force Majeure Clause To Justify Prolonged Delays Unacceptable : NCDRC Holds Developer Liable For Deficiency In Service

The NCDRC held that invoking the "Force Majeure" clause to justify prolonged project delays is unacceptable when such delays stem from avoidable inefficiencies. The case involved a real estate developer, Reliance, accused of delay in handing over possession of residential units. The commission ruled that the developer’s reliance on the clause was unjustified, as the delays were not solely due to unforeseeable circumstances. The judgment emphasized the developer's liability for deficiency in service and ordered compensation to impacted homebuyers. This case underscores the limitations of invoking contractual clauses in defense of service delays and reinforces the consumer-centric approach of the commission. The decision also sets a significant benchmark for resolving disputes in the real estate sector.