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Delayed Possession Dispute: M/s Emaar MGF Land Limited vs. Rajat Lal and Dr. T. Chandan

Delayed Possession Dispute: M/s Emaar MGF Land Limited vs. Rajat Lal and Dr. T. Chandan
Delayed Possession Dispute: M/s Emaar MGF Land Limited vs. Rajat Lal and Dr. T. Chandan

In the case of Appeal No.103 of 2020, M/s Emaar MGF Land Limited, a prominent real estate company, appealed against an order passed by the Haryana Real Estate Regulatory Authority. The appeal was filed under Section 44(2) of the Real Estate (Regulation and Development) Act, 2016. The respondents in the case were Rajat Lal and Dr. T. Chandan, who had filed a complaint regarding the delayed possession and interest on payments made for their allotted unit. The case was heard and decided by Shri Inderjeet Mehta (Member, Judicial) and Shri Anil Kumar Gupta (Member, Technical) of the Haryana Real Estate Appellate Tribunal.

Background:

M/s Emaar MGF Land Limited, with its registered office in Saket, New Delhi, and corporate office in Gurugram, Haryana, had allotted a unit (EP0-03-019) measuring 627.16 sq.ft. to the respondents in their project called "Emerald Plaza in Emerald Hills" located in Sector 65, Gurugram, Haryana. The agreement between the parties was executed on 17.01.2011, and the due date of possession was 17.11.2013, after a grace period of 120 days.

Key Points

Appellant: M/s Emaar MGF Land Limited, a real estate company.
Respondents: Rajat Lal and Dr. T. Chandan, allottees of an office space unit in the "Emerald Plaza in Emerald Hills" project in Gurugram, Haryana.
Dispute: Delayed possession of the allotted unit.
Agreement: Executed on January 17, 2011, with a due date of possession set as November 17, 2013.
Occupation Certificate: Received by the M/s Emaar MGF Land Limited on January 8, 2018.
Complaint: Filed by the respondents with the Haryana Real Estate Regulatory Authority.
Impugned Order: Passed on January 16, 2019, directing the appellant to pay interest at the prescribed rate from the due date of possession until the date of actual possession.
Grounds of Appeal: Jurisdictional issues and technical grounds, later withdrawn by the M/s Emaar MGF Land Limited.
Appellate Decision: The appeal was partially allowed by the Haryana Real Estate Appellate Tribunal.
Interest Calculation: Interest on payments made before the due date of possession to be calculated from the due date itself. Interest on payments made after the due date to be calculated from the respective payment dates.
Compliance: The M/s Emaar MGF Land Limited was directed to pay the determined interest to the respondents.
Pre-Deposit: The M/s Emaar MGF Land Limited had deposited an amount of Rs. 15,45,414/- with the tribunal, which was to be disbursed to the respondents along with any accrued interest

Complaint and Impugned Order:

The respondents alleged a delay of five years in receiving the offer of possession, which was finally received in January 2018. However, the offer of possession letter did not mention the interest for the delayed period. The respondents requested the M/s Emaar MGF Land Limited to pay interest for the delayed possession, but the same was denied. Consequently, Rajat Lal and Dr. T. Chandan filed a complaint before the Haryana Real Estate Regulatory Authority.

The impugned order, dated 16.01.2019, disposed of the complaint and directed the appellant to pay interest at the prescribed rate of 10.75% per month for every month of delay from the due date of possession (17.11.2013) until the actual handover of possession (24.01.2018). The order also directed the M/s Emaar MGF Land Limited to refrain from charging holding charges during the period the matter remained sub-judice.

Arguments and Decision:

During the appeal proceedings, the appellant contended that the jurisdiction of the authority and other technical grounds were not being pressed, considering a judgment of the Hon'ble Apex Court in a similar case. The sole issue raised in the appeal was regarding the interest on payments made by the respondents after the due date of possession.

The Rajat Lal and Dr. T. Chandan' counsel argued that similar issues had been decided by the Tribunal in previous appeals, and they requested the appeal to be decided accordingly. They emphasized that the impugned order was in compliance with the provisions of the Real Estate (Regulation and Development) Act, Rules, and Regulations.

After hearing both parties and examining the record, the Tribunal concluded that the interest on payments made by the Rajat Lal and Dr. T. Chandan before the due date of possession (17.11.2013) would be calculated from that date. However, the interest on payments made after the due date of possession would be calculated from the respective dates of payment made by the respondents.

Conclusion:

In conclusion, Appeal No.103 of 2020 involved a dispute between M/s Emaar MGF Land Limited and the respondents, Rajat Lal and Dr. T. Chandan, regarding delayed possession and interest on payments. The Haryana Real Estate Appellate Tribunal partially allowed the appeal, ruling that interest on payments made by the Rajat Lal and Dr. T. Chandan after the due date of possession would be calculated from the respective dates of payment. The amount deposited by the appellant with the Tribunal was directed to be disbursed to the respondents, with any excess amount remitted to the M/s Emaar MGF Land Limited.

Note: The information provided in this article about Haryana Real Estate Regulatory Authority (HRERA) is for informational purposes only. It is not intended as legal or professional advice and readers should consult qualified professionals for advice specific to their circumstances. The information provided in this article is based on the Appeal No 103 of 2020 before the Haryana Real Estate Regulatory Authority

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