Complaint Filed After 5 Years From Cause Of Action, Haryana RERA Dismisses Homebuyer's Complaint Against Emaar

Background Facts

The homebuyer (Complainant) booked a flat in the "Emerald Hills Floors" project in Gurugram by paying ₹5,00,000 on 17th June 2009. The total sale price of the flat was ₹67,00,000.

The Buyer's Agreement was executed between the original allottee and the builder (Respondent) on 28th December 2009. This agreement was later endorsed in favor of the homebuyer on 18th July 2011. According to Clause 13(a) of the agreement, the builder was required to deliver possession of the flat within 27 months. However, the homebuyer received physical possession of the flat on 4th July 2017.

Aggrieved by this delay, the homebuyer filed a complaint with the authority more than 5 years after possession was offered. The complaint sought the execution of the conveyance deed, provision of amenities, and interest for the delay.

Contention of the Builder

The builder argued that the homebuyer's complaint is barred by the limitation period. They stated that since the Real Estate Regulation and Development Act 2016 does not specify a limitation period, the complaint should be barred under the three-year limitation rule.

Observation and Direction by Authority

The Authority held that while the law of limitation does not strictly apply to the Real Estate Regulation and Development Act of 2016, it is still guided by the principles of natural justice under Section 38 of the Act.

The Authority observed that the law favours those who are vigilant about their rights and not those who delay. To prevent opportunistic and frivolous litigation, a reasonable period for a litigant to assert their rights must be established.

Therefore, Authority concluded that three years is a reasonable time frame for initiating litigation under normal circumstances. Since the builder offered possession to the homebuyer on 24.04.2017, the cause of action began on 28.04.2017.

The Authority noted that the homebuyer filed the complaint after a delay of 5 years, 5 months, and 20 days from the date the cause of action arose. Therefore, the complaint was barred by limitation, and the Authority dismissed the homebuyer's complaint.

Case – Mrs. Neeru Bhatia Versus M/s Emaar MGF Land Ltd.

Citation – Complaint No: 6744 of 2022

Counsel for Homebuyer – Kuldeep Kohli

Counsel for Builder – Harshit Batra