Haryana Real Estate Tribunal Modifies Order in Emaar MGF Land Limited Case

The Haryana Real Estate Appellate Tribunal recently ruled on an appeal filed by Emaar MGF Land Limited against an order issued by the Haryana Real Estate Regulatory Authority. The case, Appeal No. 314 of 2020, involved a complaint filed by Commander Narender Kumar against the appellant-promoter. In this article, we will delve into the details of the case and the subsequent decision of the Tribunal.

Background:

Before the Haryana Real Estate Appellate Tribunal

Appeal No. 314 of 2020

Date of Decision: 06.02.2023

Appellant: Emaar MGF Land Limited

1st Address: 306-308, Square One, C-2, District Centre, Saket, New Delhi-110017. 2nd Address: Corporate Office, Emaar Business Park, MG Road, Sikanderpur, Sector 28, Gurugram, Haryana, 122002

Respondent: Commander Narender Kumar

Address: House No.352, Block-1, Defence Colony, Chanakyapuri, New Delhi, 110021

Coram: Shri Inderjeet Mehta - Member (Judicial) and Shri Anil Kumar Gupta - Member (Technical)

Argued by:

Ms. Rupali Shekhar Verma - Advocate, Ld. counsel for the appellant-promoter.

Shri Kuldeep Kumar Kohli - Advocate, Ld. counsel for the respondent-allottee.

On 18th December 2009, Emaar MGF Land Limited issued a provisional allotment letter to Commander Narender Kumar for a unit in their project "Emerald Estate" Premier at Emerald Estate, Sector 65, Gurugram. The Buyer's Agreement was executed on 18th January 2010, with a commitment to deliver possession of the unit within 36 months, i.e., by 18th April 2013. However, the appellant-promoter failed to meet the agreed-upon deadline, prompting the respondent-allottee to file a complaint.

The Complaint and the Impugned Order:

Commander Narender Kumar, the respondent-allottee, filed Complaint No. 1729 of 2018 against Emaar MGF Land Limited with the Haryana Real Estate Regulatory Authority. The complaint alleged a delay in the possession of the unit and sought appropriate action.

After due consideration, the Haryana Real Estate Regulatory Authority passed an order on 21st January 2020. The Authority directed the respondent-allottee to pay interest at the prescribed rate of 10.20% per annum for each month of delay on the amount paid from the due date of possession until the offer of possession. The appellant-promoter was also restrained from charging any additional amount not mentioned in the buyer's agreement. Furthermore, interest on the due payments from the respondent-allottee was to be charged at the same rate of 10.20% as the delayed possession charges.

The Appeal and the Tribunal's Decision:

Aggrieved by the order of the Haryana Real Estate Regulatory Authority, Emaar MGF Land Limited, the appellant-promoter, filed an appeal before the Haryana Real Estate Appellate Tribunal. The appeal primarily challenged the method of interest calculation as directed by the Authority.

During the proceedings, the counsel for the appellant-promoter argued that interest should be payable from the respective payment dates made by the respondent-allottee after the due date of possession, rather than from the due date itself. Surprisingly, the counsel for the respondent-allottee agreed with the appellant's contention and requested the Tribunal to align its decision with previous similar appeals.

After careful consideration of the arguments and examination of the records, the Haryana Real Estate Appellate Tribunal found merit in the appellant-promoter's contention regarding the interest calculations. The Tribunal held that interest on the amount paid by the respondent-allottee after the due date of possession should be calculated from the date of payment of the respective installments, instead of from the due date of possession.

Conclusion:

In conclusion, the Haryana Real Estate Appellate Tribunal, in Appeal No. 314 of 2020, modified the impugned order of the Haryana Real Estate Regulatory Authority. The Tribunal directed that interest on the payments made by the respondent-allottee after the due date of possession should be calculated from the respective payment dates instead of from the due date itself.

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 Appeal No. 314 of 2020 before the Haryana Real Estate Regulatory Authority

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