1. Appeal against consumer commission order — Delay in handover of possession by developer — Dispute over interest on balance amount. (Para 1 , 4 , 5 )
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2024 Supreme(SC) 336
SUPREME COURT OF INDIA
B.R. GAVAI, SANDEEP MEHTA, JJ.
Sanjay Chaudhary And Anr. – Appellants
Versus
Pioneer Urban Land & Infrastructure Ltd. And Anr. – Respondents
Civil Appeal No(S).1454 of 2023
Decided on : 10-04-2024.
Advocates appeared:
For the Appellant(s) : Mr. Gaurav Goel, AOR Mr. Aditya Parolia, Adv. Mr. Piyush Singh, Adv. Mr. Akshay Srivastava, Adv. Mrs. Kashish Sareen, Adv. Ms. Sumbul Ismail, Adv. Mr. Vivek Kumar, Adv. Mr. Alankrit Bhatnagar, Adv. Mr. Pranjal Mishra, Adv.
For the Respondent(s): Mr. T.V.S. Raghavendra Sreyas, AOR Mr. Siddharth Vasudev, Adv. Ms. Gayatri Gulati, Adv. Ms. Sugandha Batra, Adv.
For the Appellant(s) : Mr. Gaurav Goel, AOR Mr. Aditya Parolia, Adv. Mr. Piyush Singh, Adv. Mr. Akshay Srivastava, Adv. Mrs. Kashish Sareen, Adv. Ms. Sumbul Ismail, Adv. Mr. Vivek Kumar, Adv. Mr. Alankrit Bhatnagar, Adv. Mr. Pranjal Mishra, Adv.
For the Respondent(s): Mr. T.V.S. Raghavendra Sreyas, AOR Mr. Siddharth Vasudev, Adv. Ms. Gayatri Gulati, Adv. Ms. Sugandha Batra, Adv.
IMPORTANT POINT
Flat-Buyers Agreement – Developer is bound to handover possession of flat to homebuyer by scheduled date.
Headnote:
Consumer Protection Act, 1986 – Section 23[Consumer Protection Act, 2019 – Section 67] – Real estate – Flat-Buyers Agreement – Respondent-developer failed to handover possession of flat to appellants-homebuyers by scheduled date – Appellants being homebuyers, had made payment of 90% of total sale consideration of flat in question to respondent-developer – Commission erred in directing that respondent-developer shall be entitled to charge interest @ 9% per annum from appellants-homebuyers on balance amount (except stamp duty and registration charges) from 14th November, 2017 till date of payment – Part of impugned order whereby respondent-developer has been permitted to charge interest at the rate of 9% per annum on balance amount quashed and set aside. (Paras 4, 5, 6 and 7)
Facts of the case:
Appellants herein are aggrieved by direction passed by National Consumer Disputes Redressal Commission giving liberty to respondent-developer to charge interest @9% per annum on balance amount (except stamp duty and registration charges) from 14th November, 2017 till date of payment from appellants-homebuyers.
Findings of Court:
Upon payment being made, possession of flat in question shall be handed over to appellants forthwith and not later than a period of 30 days from the date of final payment being made.
Result : Appeal disposed of with directions.
Legal Category Hierarchy
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consumer protection
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real estate
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possession delay
- interest on balance payment (Para 6)
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possession delay
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real estate
Table of Contents
2. Challenge to the direction allowing the developer to charge interest on the balance amount despite the failure to deliver possession on time. (Para 2 )
3. Developer's failure to handover possession by the scheduled date precludes them from charging interest on the balance amount from the homebuyers. (Para 6 )
4. A developer who fails to deliver possession by the scheduled date is not entitled to charge interest on the balance amount. (Para 6 )
5. Order permitting interest on balance amount quashed — Developer directed to convey outstanding amount and handover possession upon payment. (Para 6 , 7 , 8 )
6. Whether a developer is entitled to charge interest on the balance amount when possession is delayed beyond the scheduled date?
No, the court held that when a developer fails to handover possession of the flat by the scheduled date, they are not entitled to charge interest on the balance amount from the homebuyers. (Para 6 )
ORDER :
Mehta, J.
1. This appeal is directed against the final order dated 23rd January, 2023 passed by the National Consumer Disputes Redressal Commission (hereinafter being referred to as ‘Commission’) whereby, the learned Commission, while allowing the Consumer Case No. 612 of 2018 filed by the appellants, issued the following directions: -
“In view of the aforesaid discussions, the complaint is partly allowed. The opposite parties are directed to issue a fresh statement of account, duly crediting delayed compensation of Rs. 2433120/- as on 13.11.2017, within one month of the judgment. On the balance amount (except stamp duty and registration charges), the opposite parties will charge interest @9% per annum, from 14.11.2017 till the date of payment. The complainants be given one month time to deposit the amount. On settlement of the account, the opposite parties will execute conveyance deed in favour of the complainants and handover possession of the unit, complete in all respect to them without any further delay.”
2. The appellants herein are aggrieved by the direction passed by the learned Commission giving liberty to the respondent developer to charge interest @9% per annum on the balance amount (except stamp duty and registration charges) from 14th November, 2017 till the date of payment from the appellants homebuyers.
3. We have heard and considered the arguments advanced by learned counsel for the parties and have gone through the impugned order and the material placed on record.
4. It is admitted that the appellants being the homebuyers, had made payment of 90% of the total sale consideration of the flat in question to the respondent-developer till 23rd June, 2014. The said amount runs to nearly Rs.2,21,56,942.42/- (total consideration for 4111 sq. ft super area and amenities being Rs.2,38,20,932/-).
5. Admittedly, the respondent-developer failed to handover the possession of the flat to the appellants-homebuyers by the scheduled date i.e. 16th March, 2014 upon which the consumer dispute came to be registered.
6. In this background, we are of the view that the learned Commission erred in directing that the opposite party i.e. respondent-developer shall be entitled to charge interest @9% per annum from the appellants-homebuyers on the balance amount (except stamp duty and registration charges) from 14th November, 2017 till the date of payment. Thus, the said part of the impugned order whereby, the respondent-developer has been permitted to charge interest at the rate of 9% per annum on the balance amount is quashed and set aside.
7. We direct the respondents to convey the outstanding amount to the appellants within a period of two months from today and upon payment being made, the possession of the flat in question shall be handed over to the appellants forthwith and not later than a period of 30 days from the date of final payment being made.
8. The appeal is disposed of in the above terms.
9. Pending application, if any, shall stand(s) disposed of.
