Landmark Settlement Reached in Real Estate Dispute: Inner Urban Infra Estate Pvt Ltd. and Allottee Find Common Ground

A landmark settlement has been reached between Inner Urban Infra Estate Pvt Ltd. and an allottee, putting an end to a protracted dispute. This breakthrough settlement was facilitated by the Karnataka State Legal Services Authority in the Karnataka Real Estate Appellate Tribunal. The resolution brings closure to a contentious case that has been under scrutiny since its initiation.

Case Overview

Appeal (K-REAT) No. 09/2023 was filed by Inner Urban Infra Estate Pvt Ltd., represented by their authorized signatory, Mr. Chandra Shekar P.K., under Section 44 of the Real Estate (Regulation and Development) Act, 2016. The appeal sought to set aside the order passed by the Karnataka Real Estate Regulatory Authority (RERA), Bengaluru, in CMP/211126/0008634, dated 11.10.2022. The case revolved around issues concerning the delay in project completion and the subsequent impact on the allottee.

The appellant has filed the above appeal under Section 44 of the Real Estate (Regulation and Development) Act, 2016, praying to set aside the impugned order dated 11.10.2022 passed by the Authority, RERA, Bengaluru in CMP/211126/0008634.

The Conciliation Process

Under the guidance of Hon'ble Sri Justice B. Sreenivase Gowda, Chairman of the Karnataka Real Estate Appellate Tribunal, and Sri S. Shashank, Advocate Conciliator, the parties engaged in conciliation proceedings. The authorized signatory of Inner Urban Infra Estate Pvt Ltd., their counsel, the respondent, Mr. Suresh S Menon, and his counsel participated in the discussions.

After thorough deliberations, the appellant and the allottee, in the presence of the Judicial and Advocate Conciliators, reached a mutually agreeable settlement. Their resolution was formalized through a Joint Memo of Settlement, signaling the end of their disputes related to the complaint and the appeal.

Terms of the Settlement

As per the terms outlined in the Joint Memo of Settlement, the promoter, Inner Urban Infra Estate Pvt Ltd., agreed to release a sum of Rs. 8,00,000/- (Rupees Eight lakhs only) to the allottee, Mr. Suresh S Menon. This amount represents the full and final settlement of interest for the delayed period from 31.12.2018 until 30.10.2023, encompassing the completion of pending work indicated in the Inspector's report appointed by the Authority.

Furthermore, Mr. Suresh S Menon consented to accept the aforementioned sum of Rs. 8,00,000/- (Rupees Eight lakhs only) as a complete settlement of his claim for interest during the aforementioned period. The remaining amount, along with any accrued interest, will be released to Inner Urban Infra Estate Pvt Ltd.

Voluntary Settlement and Order Disposal

The conciliation order highlights that the settlement was voluntarily reached, without any force or coercion, and represents the free will of both parties involved. Inner Urban Infra Estate Pvt Ltd. and Mr. Suresh S Menon affirmed that they have no further claims against each other, except for those pertaining to the subject matter of the complaint and the appeal.

In light of the settlement, the appeal has been disposed of in accordance with the terms laid out in the Joint Memo of Settlement. The Joint Memo of Settlement has been officially incorporated into the conciliation order and shall be treated as an integral part thereof.

The Order and Compliance

The conciliation order sets forth several directives to ensure compliance with the settlement. The registry has been instructed to release the sum of Rs. 8,00,000/- (Rupees Eight lakhs only), which was deposited by Inner Urban Infra Estate Pvt Ltd. during the appeal, to Mr. Suresh S Menon. This shall be done through the issuance of a cheque or demand draft in his favor. Additionally, the remaining amount, along with any accrued interest, will be refunded to Inner Urban Infra Estate Pvt Ltd. by issuing a cheque or demand draft in the name of the company's authorized signatory.

The conciliation order emphasizes that the parties must fulfill their respective obligations as detailed in the Joint Memo of Settlement. This is crucial to give effect to the compromise and prevent any future litigation. The registry is further directed to provide certified copies of the order, accompanied by a copy of the Joint Memo of Settlement, upon request.

Conclusion

The landmark settlement between Inner Urban Infra Estate Pvt Ltd. and the allottee, Mr. Suresh S Menon, represents a significant milestone in the resolution of real estate disputes. Through the diligent efforts of the Karnataka State Legal Services Authority and the Karnataka Real Estate Appellate Tribunal, a protracted and contentious case has been successfully resolved.

This landmark agreement sets a precedent for amicable settlements and underscores the effectiveness of alternative dispute resolution mechanisms. The conciliation process, guided by the Judicial and Advocate Conciliators, facilitated constructive dialogue, enabling the parties to find common ground and reach a mutually satisfactory resolution.

By fostering a voluntary and fair settlement, this case exemplifies the importance of seeking equitable solutions that address the concerns of all parties involved. The conciliation order, supported by the Joint Memo of Settlement, provides a clear roadmap for compliance, ensuring that the terms of the agreement are upheld.

In a realm where disputes can often lead to protracted legal battles, this landmark settlement serves as an encouraging example of the potential for successful dispute resolution through conciliation. It sets a positive precedent for the real estate sector, highlighting the importance of open dialogue and mutual understanding in achieving favorable outcomes.

Note: The information provided in this article about Karnataka Real Estate Regulatory Authority (KRERA) 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 (K-REAT) NO. 09/2023 before the Karnataka Real Estate Regulatory Authority

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