Introduction
The Supreme Court also set aside the order dated November 9, 2022, passed by the National Consumer Disputes Redressal Commission (NCDRC). It directed the developer to repay the amount deposited by the developer within 12 months with simple interest at a rate of 12% per annum.
Table of Contents
- Supreme Court Gave Its Verdict in the Lodha Case
- Supreme Court Released the Payment Schedule
- SC Came Down On The NCDRC Stating
The Supreme Court’s decision set aside the order of the National Consumer Disputes Redressal Commission (NCDRC) from November 9, 2022, saying the delay was not “unreasonable.” Instead, the court favored the home buyer. Emphasized the importance of timely possession and ordered repayment with interest.
Supreme Court Gave Its Verdict in the Lodha Case
Lodha Crown Buildmart, a part of listed real estate developer Macrotech Developers (Lodha), offers a homebuyer within 12 months Rs. 2.25 crore, which was ordered to be refunded by the Supreme Court.
The refund was in response to alleged delays in taking possession of a 1,966-square-foot apartment purchased in November 2013. The court ordered the developer to pay a simple interest rate of 12 percent per year on the refunded amount.
Supreme Court Released the Payment Schedule
Homebuyer Venkataraman Krishnamurthy bought a 4-BHK apartment in Lodha Evoque Project, New Cuff Parade, Wadala, Mumbai, for Rs 7.55 crore. According to the payment schedule, the home buyer will pay Rs. 2.25 crore. After the start of fit-outs, the remaining Rs. 5.83 crore is to be paid.
The contract stipulates delivery of apartment fit-outs by June 30, 2016 or June 30, 2017, with a grace period. However, the developer failed to meet this deadline, forcing the home buyer to cancel the contract and seek a refund.
The SC said on February 22 that clause 11.3 of the agreement makes it clear that in case of delay in possession of the apartment for fit outs, the developer must inform the buyer within 30 days of the end of the grace period. A revised date on which the unit is likely to be ready for possession for fit-outs, and if agreed upon by the buyer, the contract will be extended.
SC Came Down On The NCDRC Stating
The Supreme Court is coming down on the NCDRC. “To rewrite the terms and conditions of the agreement between the parties. And to apply its own subjective criteria to decide the course of action to be followed in any of them but not for the NCDRC,” it said.
NCDRC has overstepped its bounds by ignoring the binding provisions of the treaty. The SC held that it had no hesitation in introducing its own logic and rationale to determine the future course of action of the parties.
The SC set aside the NCDRC order dated November 9, 2022. The complaint was allowed by directing the developer to repay the amount deposited by the developer within 12 months with simple interest at a rate of 12 percent per year. The first such installment is due on April 5, 2024. Subsequent installments are due on the 5th of each month until paid in full.
Conclusion
This judgment emphasizes the importance of adhering to delivery timelines in real estate transactions. Provides relief to home buyers who face delays in possession. For more Information, visit Openplot.
Also Read: Supreme Court Judgment: Property Tax Even on Non-Citizens of India