FACTS

The developer, Marvel Omega Builders had sold one villa to Mr. Shrihari Gokhale in July
2012. Builder had promised to handover the possession of the villa by December 31, 2014.
However, the possession of the above said property was not passed to the complainant
within the stipulated time period. Therefore, a complaint was filed by the complainant before
National Consumer Disputes Redressal Forum seeking a refund of Rs. 13.24 crore.

NCDRC passed an order in favour of the complainant directing the respondent to refund Rs.
8.14 crore principal amount along with 10% interest to the complainant.
The builder filed a petition before the Supreme Court challenging the order passed by
NCDRC.

CONTENTION
It was contented  by the appellant that the villa was ready and completion certificate would
be made available to the respondents within 21 days.

ISSUE INVOLVED
Whether a  buyer can be compelled to take possession of the property after there is a delay
in timely completion of project?

JUDGMENT
Upholding the order passed by NCDRC, Supreme Court bench comprising of Juatice U. U
Lalit and Vineet Saran observed that a buyer is fully justified in refusing to accept the
possession of a ready house after there has been an unreasonable delay. The Apex Court
observed that there was a total failure on the part of the builder and deficiency in rendering
services.

The Court further directed that the villa would not be sold nor any third party rights would be
created until the said order was executed by the appellant party and that the property shall
remain under attachment till the order was fully compiled with.

In another case, Rajvir Singh Rana v. Pioneer Urban Land and Infrastructure Ltd.,
NCDRC observed that in case of an unreasonable delay which the builder in unable to
explain, the choice is with the buyer whether to take belated possession or to seek refund
with appropriate compensation.

After coming inforce of Real Estate Regulation Act, 2016, the complainant has an additional
remedy to approach Real Estate Regulation Authority instead of filing a complaint at
Consumer Forum under Consumer Protection Act, 1986.

You may also contact for expert legal advice online from top/best RERA Real
Estate lawyer/advocate  in Chandigarh/ Punjab/Haryana. 

Section 18 of Real Estate Regulation Act, 2016 provides for compensation and refund in
case of delay. It states that if the promoter fails to complete or is unable to give possession of
an apartment, plot or building in accordance with the terms of the agreement for sale, he shall be
liable on demand to the allottees, in case the allottee wishes to withdraw from the project, to
return the amount received by him in respect of that apartment, plot or building with interest at
such rate  including compensation. Where an allottee does not intend to withdraw from the
project, he would be paid by the promoter, interest for every month of delay, till the handing over
of the possession