Supreme Court has once again settled the controversy of Delay in possession by builder by laying out the view that homebuyer can’t wait indefinitely to have the possession of his flat, plot or unit in question.
Facts of the case:
1 Homebuyer filed the case in State Consumer Commission where his refund was allowed. Builder went into appeal in National Consumer Disputes Redressal Commission at New Delhi where too the refund was upheld.
2 Now the builder came to Supreme Court challenging both the orders above. The owner paid somewhat 40 lakhs and the possession was to be delivered by 31st December, 2008 plus six months grace.
3 Homebuyer filed the complaint in 2011 seeking refund of entire amount with 12% interest and 20 lakhs compensation. Refund along with 12% interest allowed plus 5 lakhs compensation by State Consumer Commission.
4 Builder Challenged the order in National Consumer Commission where Compensation was reduced to 2 lakhs and rest of the order intact.
5 Now before Supreme Court, it was held that builder can’t let buyer wait for indefinite time to have possession. A reasonable time would still be so justified but here in 2011 , the prayer requested for refund or possession but still builder failed. So there can’t be anything wrong on the part of Homebuyer.
This decision of latest Supreme Court judgment puts stop to contrary RERA Punjab and Haryana RERA Panchkula Authority where refunds were refused despite having a provision in RERA law for it.
This order of Supreme Court came in Kolkata West International City Pvt Ltd versus Devasis Rudra. The builder pleaded that since the buyer prayed for possession or refund before State Commission, it would be inappropriate to grant refund. To this Supreme Court held that it is manifestly unfair to non-suit the buyer merely on the basis of prayer made before the State Consumer Commission.
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For more info on the subject, you may dial 99888-17966 for more info. This post is written by Advocate Satish Mishra.