Maha REAT – Carpet Area Mentioned In Agreement Of Sale Will Supersede All Other Documents

In real estate, Carpet Area refers to the actual usable area within the walls of an apartment or a property. It excludes common areas such as staircases, lobbies, balconies, and walls.

Background Facts

Homebuyer purchased a flat in the Builder's project Meridia, with the agreement for sale executed and registered on 10th August 2019.

Further, Homebuyer faced various issues related to the flat. Firstly, there was a delay in the delivery of the flat, extending beyond the agreed timelines despite the receipt of the occupation certificate for the project. Additionally, the Builder demanded further payments beyond the terms of the agreement, allegedly without providing proper receipts. Furthermore, the carpet area of the apartment was purportedly less than what was promised at the time of booking, by approximately 225 square feet. The appellant also accused the Builder of engaging in fraudulent practices, including falsely altering the carpet area.

The Homebuyer claimed compensation for the alleged deficit in the carpet area, primarily referencing two documents issued by the Builder - a challan dated 18th July 2019, indicating a carpet area of 77.2 sq. mtrs., and a draft agreement for sale dated 19th July 2019, which showed a carpet area of 71.21 sq. mtrs.

Aggrieved by the delay and other aforementioned issues, Homebuyer filed a complaint before MahaRERA, seeking various reliefs such as possession of the flat, compensation for the discrepancy in carpet area, revocation of project registration due to fraudulent practices, and direction for the registration of a cooperative society. However, the Builder resisted the complaint, arguing that the demands, including for GST payments, were in accordance with the agreement for sale, and they assured to issue receipts for the payments.

MahaRERA, in its order dated 26th November 2019, directed the builder to hand over possession of the flat to the homebuyer within 15 days. Subsequently, Homebuyer appealed against this order, seeking various reliefs, such as compensation for the carpet area discrepancy, refund of GST payments, revocation of project registration, and registration of the cooperative society.

MahaREAT Order

Tribunal rejected the Homebuyer's compensation demand for the alleged deficit in carpet area as the executed agreement for sale clearly stipulated the carpet area as 50.29 sq. mtrs.

The Tribunal held that the claim for compensation is legally unsustainable due to several reasons. For instance, Clause 3.2 of the executed and registered agreement for sale clearly states the promised carpet area as 50.29 sq. mtrs. Additionally, Clauses 63 and 64 of the agreement establish that the entire agreement between the parties will supersede any previous understandings or agreements.

The Tribunal further observed that the agreement for sale will supersede all previous documents, including the challan and draft agreement cited by the Homebuyer, as they predate the execution of the agreement.

Furthermore, the Tribunal noted that the homebuyer did not raise any disputes regarding the carpet area at the time of possession or afterwards until filing the complaint. Additionally, documents such as the allotment letter and booking application form also confirm the carpet area as 50.29 sq. mtrs.

Therefore, the Tribunal dismissed the appeal of the Homebuyer, holding it unsustainable and devoid of any merit.

Case – Kamal Kishore Uniyal Versus Accord Builders

Citation - APPEAL NO. AT006000000011117 0F 2019