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M/s. Supertech Ltd. v. Rajni Goyal

Civil Appeal · 2018 INSC 979Decided 23 Oct 2018
Civil Appeal Nos. 6649-50 of 2018
Justice Abhay Manohar Sapre · Justice Indu Malhotra

Background

A homebuyer booked a flat in the builder's "Capetown" project in Noida in 2012, with possession promised by October 2013 (extendable by up to six months). The builder could not hand over possession on time and only issued a "Pre-Possession Letter" in October 2015 demanding over Rs. 12 lakh in various charges, which the buyer refused to pay, partly on the ground that the builder did not yet hold an Occupancy Certificate. The buyer filed a consumer complaint, and the National Consumer Disputes Redressal Commission partly allowed it, awarding her 8% simple interest as compensation for the delay from November 2013 until possession was actually offered, while allowing the builder some of the disputed charges.

Decision Breakdown

The Supreme Court heard both sides and accepted the builder's argument that some delay was attributable to external factors (orders of the National Green Tribunal) and that the buyer herself had admitted the builder obtained the Completion Certificate by April 2016, after which she could not claim further delay-compensation. The Court therefore modified the Commission's order only on the period for which interest/compensation was payable, recalculating it to run from 1 May 2014 (accounting for the contractual 6-month grace period) to 30 April 2016, while keeping the Commission's awarded interest rate and other directions otherwise intact. The appeals were disposed of on this limited modification.

Lesson Learnt

In builder-delay compensation disputes, courts will tie the compensation period strictly to the facts on record, including grace periods written into the agreement and the buyer's own admissions about when the project was actually completed, rather than simply upholding or rejecting the lower forum's award wholesale.

Official source (sci.gov.in)View Judgment (PDF)

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