Legal Precedent Established : Execution of Conveyance Deed Doesn't Extinguish Delay Compensation Rights

In a recent case before the Haryana Real Estate Appellate Tribunal, Pawan Jeet Kohli, a resident of New Delhi, challenged an order passed by the Haryana Real Estate Regulatory Authority. The case (Appeal No. 700 of 2022) involved a dispute between Pawan Jeet Kohli (the appellant) and M/s Parsvnath Developers Ltd. (the respondent), a renowned real estate development company. The Tribunal, headed by Justice Rajan Gupta, set aside the earlier order and remanded the case to the Authority for a fresh decision. This article provides an in-depth analysis of the case, its background, key arguments, and the Tribunal's decision.

Case Background:

Pawan Jeet Kohli, the appellant, had filed a complaint (No. 367 of 2021) with the Haryana Real Estate Regulatory Authority against M/s Parsvnath Developers Ltd., the respondent. The complaint pertained to the delay in the delivery of plots and the appellant's claim for delay compensation. However, the Authority dismissed the complaint, stating that the contractual obligations between the parties had been discharged, and the complaints were filed nearly two years after the execution of the conveyance deeds.

Appellant's Arguments:

The appellant's counsel argued that the Authority had not considered the relevant legal precedents while dismissing the complaint. They highlighted the judgments of the Hon'ble Supreme Court in the case of Wg. Cdr. Arifur Rahman Khan and Aleya Sultana v. DLF Southern Homes Pvt. Ltd. and the decision of the Haryana Real Estate Appellate Tribunal in the case of Amit Gupta v. Athena Infrastructure Pvt. Ltd. These judgments supported the appellant's claim for delay compensation even after the execution of the conveyance deeds.

Tribunal's Decision:

After careful consideration, the Tribunal, led by Justice Rajan Gupta, set aside the order of the Authority and remanded the case for a fresh decision. The Tribunal observed that the Authority had failed to take into account the legal principles laid down in the aforementioned judgments. It held that the execution of the conveyance deed does not extinguish the right to claim delay compensation and that the contractual relationship between the parties could be reopened for such claims.

Conclusion:

The Haryana Real Estate Appellate Tribunal's decision in the case of Pawan Jeet Kohli vs. M/s Parsvnath Developers Ltd. sets an important precedent regarding delay compensation claims in real estate disputes. The Tribunal recognized that the execution of a conveyance deed does not preclude the right to seek compensation for delays. By remanding the case for a fresh decision, the Tribunal has ensured that the relevant legal precedents will be considered, providing a fair opportunity to both parties to present their arguments.

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.700 OF 2022 before the Haryana Real Estate Regulatory Authority

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