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Mere Offer Of Refund By Developer Does Not Disentitle Flat Buyers From Claiming Compensation For Delay In Handing Over Possession: Supreme Court

Team SoOLEGAL 23 Dec 2020 3:11pm

Mere Offer Of Refund By Developer Does Not Disentitle Flat Buyers From Claiming Compensation For Delay In Handing Over Possession: Supreme Court

On 14th December, 2020, Supreme Court while hearing a plea filed by a developer, DLF Home Developers Ltd. had rejected the same by stating that, a flat purchaser must not get excluded from his/her rights merely because the appellant had offered an exit option of refund along with interest.

Justice DY Chandrachud, Justice Indu Malhotra and Justice India Banerjee were hearing the plea and were of the view that, a flat buyer who is purchasing a flat for his/her family or for his/her own shelter cannot be excluded from his/her own rights by just giving an offer of refund and also he/she is entitled to get compensation for the delay caused on part of the developer in handing over possession.

Earlier, the National Consumer Disputes Commission was hearing a plea which was filed by Capital Greens Flat Buyers Association alleging that the developer company had made a substantial delay in providing flats to the buyer as per the contract. The forum directed the respondents to pay compensation to the complainants from the expected date of delivery till the date on which the delivery was actually occurred. Being aggrieved by the order of the forum, the respondent company had filed an appeal to the Apex Court on two grounds. Firstly, the possessions of the flats were delayed because of the force majeure clause and secondly, an exit offer was offered to the buyers with 9% interest.

The Court was of the view that delay in approval of building plan is normal and it cannot be considered as force majeure condition. Court also stated that, a flat buyer is entitled to get compensation and the buyer cannot be excluded from his/her rights merely because the developer company has offered an exit option of refund along with interest.

The Court had upheld the order of the National Consumer Disputes Commission and stated that, the flat buyers had to suffer a lot due to the delay in providing the possession by the developer, thus the developer must give a compensation of Rs 10 per square foot as per the agreements for the purchase of flats.



Tagged: Supreme Court   Justice DY Chandrachud   Justice Indu Malhotra   Justice India Banerjee  
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