Point of Law: When complainant confines grant of interest to a lesser amount than statutory interest, then Regulatory Authority shall confine the same to rate of interest claimed and in such cases statutory interest as such is not either entitled or to be granted.

JUDGMENT :

These miscellaneous second appeals have been filed under Section 58(1) of the Real Estate (Regulation and Development) Act, 2016.

2. M.S.A. No.13 of 2023 arises out of order in REFA No.74/2022 dated 28.02.2023 on the files of the Kerala Real Estate Appellate Tribunal, Ernakulam and the order in Complaint No.90/2022 dated 26.07.2022 on the files of the Kerala Real Estate Regulatory Authority, Thiruvananthapuram. The appellants are the appellants in REFA No.74/2022 and the respondent is the original complainant in Complaint No.90/2022.

3. M.S.A. No.14 of 2023 arises out of order in REFA No.75/2022 dated 28.02.2023 on the files of the Kerala Real Estate Appellate Tribunal, Ernakulam and the order in Complaint No.120/2022 dated 26.07.2022 on the files of the Kerala Real Estate Regulatory Authority, Thiruvananthapuram. The appellants are the appellants in REFA No.75/2022 and the respondents are the original complainants in Complaint No.120/2022.

4. Heard the learned Senior counsel for the appellants as well as the learned counsel appearing for the respondents.

5. Both these appeals admitted on 08.06.2023, raising the following question of law:

Whether the Kerala Real Estate Authority is bound by the provisions in Rule 18 of the Kerala Real Estate (Regulation and Development) Rules, 2018 with regard to the rate of interest payable in case an allottee wishes to withdraw from the project and take back the amounts which he has paid?

6. Precisely spelt, the dispute herein is that, when the promoter could not complete the construction as agreed, the allottees herein filed separate complaints before the Kerala Real Estate Regulatory Authority, Thiruvananthapuram seeking return of money they had given along with interest. The Regulatory Authority adjudicated the respective claims and granted the reliefs. While granting the interest, the Regulatory Authority followed Rule 18 of the Kerala Real Estate (Regulation and Development) Rules, 2018 and granted interest at the rate of 14.75% (12.75 + 2%). In the respective appeals filed against the orders by the appellants herein, the Appellate Authority also confirmed the orders. Even though the promoter deposited the principal amount, the promoter disputes entitlement of interest at the rate of 14.75% and the same is the prime question to be addressed herein.

7. The learned Senior counsel appearing for the appellants submitted that as per Rule 18 of the Kerala Real Estate (Regulation and Development) Rules, 2018 the annual interest payable by the promoter to the allottee or by the allottee to the promoter, as the case may be, is the State Bank of India's Benchmark Prime Lending Rate plus 2% interest and shall be computed as simple interest.

8. In M.S.A. No.13 of 2023, the learned senior counsel for the appellants pointed out that the interest claimed by the respondent is only 12% and the Authority granted 14.75% in excess of the claim. However, it is conceded by the learned senior counsel for the appellants further that in M.S.A. No.14 of 2023, 15% is the interest canvased where 14.75% of the interest was granted. Even though the learned Senior counsel appearing for the appellants given emphasis to Section 19 of the Act with particular reference to sub sections (5) and (6) to contend that every allottee who has entered into an agreement for sale to take an apartment, plot or building as the case may be, under Section 13, shall be responsible to make necessary payments in the manner and within the time as specified in the said agreement for sale and shall pay at the proper time and place the share of the registration charges, municipal taxes, water and electricity charges, maintenance charges, ground rent and other charges, if any, the allottee also shall be liable to pay interest as provided under sub section (7) of Section 19 of the Act, and the same shall be subject to sub section (8) of Section 19.

9. Insofar as payment of interest, the same shall be in accordance with Rule 18 of the Kerala R