In a recent case before the Haryana Real Estate Appellate Tribunal, Emaar India Limited, the appellant-promoter, filed an appeal against an order passed by the Haryana Real Estate Regulatory Authority. The respondents-allottees, Mrs. Nirmal Gupta and Mrs. Jyoti, had filed a complaint seeking compensation for the delay in possession of their property. This article aims to simplify and explain the key details of the case.
Case Title: Emaar India Limited v. Mrs. Nirmal Gupta and Mrs. Jyoti
Appeal Number: 42 of 2021
Date of Decision: February 9, 2023
Court: Haryana Real Estate Appellate Tribunal
Appellant: Emaar India Limited Registered Office: 306-308 Square One, C-2 District Centre, Saket, New Delhi-110017
- Mrs. Nirmal Gupta Residence: H.No. 528/3, Opposite Ghanteshwar Mandir, Rohan Pura, Gurgaon, Haryana
- Mrs. Jyoti Residence: H.No. 528/3, Opposite Ghanteshwar Mandir, Rohan Pura, Gurgaon, Haryana
Members of the Tribunal:
- Shri Inderjeet Mehta - Member (Judicial)
- Shri Anil Kumar Gupta - Member (Technical)
Appellant's Counsel: Ms. Rupali Shekhar Verma
Respondents-Allottees' Counsel: Shri Sanjeev Sharma
The respondents had booked a unit in the Emerald Hills-Plot project in Gurugram, Haryana, which was being developed by Emaar India Limited. The due date of possession as per the agreement was 28th June 2012. However, the possession was handed over to the respondents on 31st August 2017, causing a significant delay. The respondents filed a complaint seeking compensation for the delay.
The Impugned Order:
The Haryana Real Estate Regulatory Authority, in its order, directed the appellant-promoter to pay interest at a prescribed rate for every month of delay from the due date of possession until the handing over of possession. The order also directed the respondents to pay any outstanding dues after adjusting the interest for the delayed period. Furthermore, the order prohibited the appellant from charging anything beyond the buyer's agreement and mandated the appellant to pay interest on due payments at the prescribed rate.
Emaar India Limited appealed against the impugned order, contending that the respondents were subsequent allottees who had purchased the property from the original allottee. The appellant argued that since the respondents were aware of the project's delay when they purchased the unit, interest should only be awarded from the date they acquired the property.
After hearing the arguments of both parties, the Haryana Real Estate Appellate Tribunal examined the facts of the case. The Tribunal noted that the respondents had purchased the property after the due date of possession had expired. Referring to a relevant Supreme Court judgment, the Tribunal held that subsequent purchasers who stepped into the shoes of the original allottee could expect relief for the delay in possession. Therefore, the respondents were entitled to delayed possession charges from the date they entered into the shoes of the original allottee.
The case of Emaar India Limited v. Mrs. Nirmal Gupta and Mrs. Jyoti highlights the issue of delayed possession in real estate projects. The Haryana Real Estate Appellate Tribunal recognized the rights of subsequent allottees and their entitlement to compensation for the delay in possession. This decision serves as a reminder to developers to adhere to delivery timelines and emphasizes the importance of protecting the interests of homebuyers in the real estate sector.
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 Appeal No. 42 of 2021 before the Haryana Real Estate Regulatory Authority
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