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JITENDRA JAIN
Sanvo Resorts Pvt. Ltd. – Appellant
Versus
Shital Nilesh Deshmukh – Respondent
The case involves an appeal filed by the promoter and developer of a real estate project against an order that awarded interest to the allottees for delay in possession. The project in question is a complex located at Panvel, where the promoter had executed a registered agreement with the allottees, promising to deliver possession by a specified date. The agreement also provided for reasonable extensions due to delays caused by factors beyond the promoter’s control, such as obtaining approvals or permits.
Despite these provisions, the promoter failed to hand over possession within the extended timeline, leading the allottees to file a complaint under the relevant real estate regulation law, seeking interest for the delay. The regulatory authority found that the promoter had failed to deliver possession as per the agreement and was liable to pay interest to the allottees, which was subsequently upheld by the appellate tribunal.
The promoter challenged this order, arguing that the delay was due to reasons beyond their control, such as delays in obtaining approvals from authorities, and that the allottees were aware of these delays. They also contended that no demand for interest was made prior to the complaint.
The court examined the legal provisions related to delay and interest under the relevant law, emphasizing that if a promoter fails to deliver possession as per the agreement, they are statutorily liable to pay interest regardless of the reasons for the delay, especially if the delay is not attributable to the allottees. It was noted that delays caused by regulatory or approval processes are considered natural incidents of real estate development and do not exempt the promoter from liability.
The court concluded that the authorities had correctly applied the law and that the reasons for delay, whether pre-existing or post-agreement, do not absolve the promoter from paying interest if they fail to deliver possession on time as per the agreement. The appeal was dismissed, affirming the entitlement of the allottees to interest for the delay in possession.
JUDGMENT :
JITENDRA JAIN, J.
1. This appeal is filed under Section 58 of the Real Estate (Regulation and Development) Act, 2016 (for short “RERA Act”) challenging the order of the Maharashtra Real Estate Appellate Tribunal (for short “Appellate Tribunal”) dated 2nd March, 2022 and as rectified on 13th April, 2022. The Appellant has raised various questions of law in the appeal filed before this Court. However, the only question which arises from the Appellate Tribunal’s order which requires to be considered is reframed as under:
Narrative of Events:
2. The Appellant is promoter and developer of a complex known as “Marathon Nexzone” at Panvel. The Respondents are allottees of a flat allotted in the aforesaid project.
3. On 27th November, 2015 the Appellant promoter executed a registered agreement with the Respondent allottees for sale of a flat. As per the terms and conditions of the agreement, the Appellant promoter agreed to handover possession of the flat in December, 2017. However, the agreement also provided
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