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Consumer RightsSupreme Court of India

Sriganesh Chandrasekaran & Others v. M/s Unishire Homes LLP & Others

Civil Appeal · 2026 INSC 172Decided 20 Feb 2026
C.A. No.-010527-010528 - 2024
Justice Pamidighantam Sri Narasimha · Justice Alok Aradhe

Background

Landowners entered a Joint Development Agreement (JDA) and gave a General Power of Attorney (GPA) to a developer, who then sold flats to buyers promising possession within 36 months. The developer missed this deadline by more than six years, prompting the flat buyers to file a consumer complaint alleging deficiency in service. The National Consumer Disputes Redressal Commission (NCDRC) held the developer liable for the delay and directed both the developer and landowners to transfer title, but declined to hold the landowners jointly and severally liable for the delay compensation itself: a decision the flat buyers challenged before the Supreme Court.

Decision Breakdown

The Supreme Court held that under the JDA and GPA, construction and delivery of flats were the developer's sole responsibility, with the developer contractually indemnifying the landowners against any construction-related liability; the landowners had no role in causing the delay. It found no principal-agent relationship that would make the landowners liable merely because they had granted a GPA, and distinguished the precedents cited by the appellants as not supporting their case. The Court agreed that the landowners were rightly directed (jointly with the developer) to transfer title and execute sale deeds, but upheld the NCDRC's finding that only the developer, not the landowners, must pay compensation for the delay, and dismissed the appeal.

Lesson Learnt

Landowners who authorize a developer through a Joint Development Agreement and General Power of Attorney are not automatically liable for the developer's own defaults in construction and delivery: liability follows who actually controlled and caused the deficiency, as spelt out in the contract's indemnity clauses.

Sriganesh Chandrasekaran & Others v. M/s Unishire Homes LLP & Others – Legal Case Shots | LegalAware