Landmark Decision by Haryana Real Estate Appellate Tribunal on Delayed Possession Case: Parminder Singh Sohal vs. BPTP Ltd.

In the case of Parminder Singh Sohal versus BPTP Ltd., Appeal No. 619 of 2021, the Haryana Real Estate Appellate Tribunal examined a dispute between the appellant, Parminder Singh Sohal, and the respondent, BPTP Ltd. The appeal was filed under Section 44(2) of the Real Estate (Regulation and Development) Act 2016.

The case involved a complaint by the appellant regarding the delay in possession of a flat in the "Discovery Park" project. This article provides a detailed analysis of the case, including the arguments presented, the order issued by the Tribunal, and the implications of the decision.

Background

The appellant had entered into a Flat Buyer's Agreement with the respondent for a flat in the "Discovery Park" project. As per the agreement, possession was to be offered within 36 months from the date of execution of the agreement or the sanctioning of the building plans, whichever is later. The appellant alleged that the possession was delayed for more than five years, and he had already paid a substantial amount towards the purchase of the flat. The appellant sought various reliefs, including the execution of the conveyance deed and compensation for the delay in possession.

Arguments and Counterarguments

During the proceedings, the appellant argued that the delay possession interest should be calculated based on the total amount paid by him towards the purchase of the unit. He relied on a judgment of the Supreme Court in the case of Wg. Cdr. Arifur Rahman Khan and Aleya Sultana and Ors. vs. DLF Southern Homes Pvt. Ltd. and Ors., which held that delay interest should be awarded on the entire amount paid by the allottees.

The respondent, on the other hand, contended that the appellant cannot seek relief under the Act for an agreement executed prior to its enforcement. The respondent also claimed that the present complaint involved disputed questions of fact and law that required detailed examination.

The Tribunal's Order

After considering the arguments and examining the record, the Tribunal issued its order. The relevant part of the order stated that the delay interest should be calculated on the entire amount paid by the appellant towards the purchase of the unit. The Tribunal rejected the respondent's contention that development charges should be deducted from the total amount. The rationale behind this decision was that the development charges collected by the builder cannot be considered a factor for determining the interest payable to the allottee for the delay in possession.

The Tribunal awarded upfront payment of delay interest amounting to Rs. 12,64,326/- to the appellant, calculated from the deemed date of possession to the date of the order. Additionally, monthly interest of Rs. 21,856/- was awarded until the actual handing over of possession.

Conclusion

The case of Parminder Singh Sohal versus BPTP Ltd. highlights the issue of delayed possession and the calculation of delay possession interest. The Tribunal's order clarified that delay interest should be awarded on the entire amount paid by the allottee, without deducting development charges. This decision is consistent with previous judgments and ensures that allottees are compensated for the losses suffered due to the delay in possession.

The case serves as a precedent for similar disputes and provides guidance on the interpretation of relevant provisions of the Real Estate (Regulation and Development) Act 2016. It emphasizes the importance of timely possession and fair treatment 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 the Appeal No. 619 of 2021 before the Haryana Real Estate Regulatory Authority

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