MahaREAT Orders Larsen And Toubro (L&T) To Pay Interest For The Delayed Possession To The Homebuyer

Background Facts

Respondent No. 1 (Ms. Nirmala Gill / Allottee) entered into an agreement for the purchase of a flat in the appellant's project on 01.03.2015 and was expecting possession by 30.09.2017, with a grace period of six months.

Due to delays in handing over possession within the agreed-upon timeframe, the respondent filed a complaint against the appellant in MahaRERA.

In its order dated 04.09.18, MahaRERA directed both the appellant and Respondent No. 2 (Omkar Realtors & Developers Pvt. Ltd.) and Respondent No. 3 (Darshan Realtors Pvt. Ltd.), who are partners in the project, to compensate Respondent No. 1 with interest on her investment from April 1, 2018, to August 31, 2018.

The appellant filed an appeal before the Tribunal against the MahaRERA order dated 04.09.18, contending that the appellant had complied with its obligation to offer possession to the allottee within the agreed time as per the terms of the agreement. The delay in possession was attributed to force majeure events, specifically the delay by the Municipal Corporation in providing water connection and other municipal works (Road construction and Excavation).

Conversely, the Respondent contended that the appellant had promised certain amenities, including water supply, sanitation, a sky garden with a jogging track, a swimming pool, a state-of-the-art gym, and a spa. However, these amenities were not ready for delivery even as stipulated in the agreement; thus, the promoter should be directed to pay interest to the allottee.

REAT Verdict

The Tribunal upheld the MahaRERA order dated 4.08.18, while modifying the interest payment period from (April 1, 2018, to August 31, 2018), to (April 1, 2018, to August 14, 2018).

Accordingly, the Tribunal directed the appellant to pay interest to the allottee from April 14, 2018, to August 14, 2018, on the actual amount (₹4,03,78,720) at the Marginal Cost Lending Rate (MCLR) of SBI plus 2%.

The Tribunal rejected the appellant contention that the delay in possession was caused by 'force majeure events' arising from BMC-related road works.

Tribunal held that reasons like construction of roads do not fall under 'force majeure events' and upheld the payment of interest on investment.

In conclusion, the Tribunal upheld the MahaRERA order, with modifications to the interest payment period. The Tribunal directed the appellant to pay interest to the allottee from April 14 to August 14, 2018, at the MCLR of SBI plus 2%. Furthermore, it dismissed the appellant's claim of 'force majeure events' and affirmed the payment of interest on the investment.

Citation: Appeal no. AT006000000010735 of 2018

Counsel for Appellant: Mr. Rubin Vakil a/w. gloni Sulakhe

Counsel for Respondent: Mr. L P. Sen, Senior Advocate (Respondent No 1), Ex-Parte (Respondent No. 2 & 3)

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