HREAT = The Decree Holder is Entitled to Get the Interest for the period of Date of Expected Payment till the Actual Payment of Amount.

HREAT = The Decree Holder is Entitled to Get the Interest for the period of Date of Expected Payment till the Actual Payment of Amount.

Hari Ballabh Sharma V/s Pareena Infrastructure Private Limited

Haryana Real Estate Appellate Tribual

Appeal No.133 of 2023

Date of Decision:  30.11.2023 

Fact of the Case :-

• In 2015 ,The appellant/allottee paid booking amount to the respondent/promoter for booking of a flat under Affordable Housing Policy” of Government of Haryana.
• on June 23, 2016 the appellant/allottee was allotted a flat in draw of lots.
• The total cost of the Flat was supposed to be Rs.17,49,330/- 
• on 19.07.2016 an ‘Apartment Buyer’s Agreement’ was executed between the parties.
• till May, 2018 The appellant/allottee made a total payment of Rs.15,70,537/-. 
• On 23.10.2018 The appellant/allottee through email and letter requested the respondent/promoter to cancel his booking after deduction of earnest money of Rs.25,000/- as per AH Policy and sought refund of the remaining amount.
• The respondent/promoter did not refund the money.

• Aggrieved with the above, the appellant/allottee filed the Original complaint number 26 of 2019 seeking relief of refund.

• On 02.04.2019 , the learned HRERA GURUGRAM Authority passed the Order of refund in favour of the appellant/allottee.

• the respondent/promoter paid the payment after 2 years in March 2021 did not pay any interest for the period it delayed the payment. 

• Aggrieved with the above, the appellant/allottee filed Execution complaint no.CR/3701/2021.

• On 05.01.2023 The said complaint was dismissed by Adjudicating Officer stating that the Decree is fully compiled.

Submissions by Appellant:-

• The appellant/allottee is aggrieved of the fact that the respondent/promoter did not make the payment to him as per the order of the Authority and forced him to file execution petition.
• The appellant contends that he is entitled to interest for the period of delay in payment of refund of Rs. 15,70,537/- from the date of the Authority's order (April 2, 2019) until March 2021, spanning two years @ 10% per annum which comes out to Rs. 3,14,107/-.

Observations made by the Hon’ble Court:-

• we deem it fit to grant interest to the appellant/allottee for the unjust delay in releasing the payment till March, 2021.
• the plea of the appellant/allottee for grant of interest of Rs. 3,14,107/- for the delay in payment beyond 90 days period till March, 2021 is legal and bonafide.

Court’s Order:-

• the said amount be paid to the appellant/allottee forthwith without any further delay.

mutual settlement is always bilateral and not unilateral

 

In the Matter of Sharad Avasthi V. Pivotal Infrastructure Pvt. Ltd. Appeal No.140 of 2019 before THE HARYANA REAL ESTATE APPELLATE TRIBUNAL it was held that "mutual settlement is always bilateral and not unilateral. The affidavit-cum-undertaking given by one party cannot constitute the mutual settlement."

the allottees will not lose their right to claim interest for delayed possession merely on the ground that the conveyance deed had already been executed

 Amit Gupta Vs. Athena Infrastructure Ltd.Appeal No.79 of 2020 in Haryana Real Estate Appellate Tribunal,

The complaint filed by the appellant-allottee for grant of interest for delayed possession was dismissed by Ld. Haryana Real Estate Regulatory Authority, Gurugram The only ground taken in the order is that as the conveyance deed had already been executed, so the complaint was not maintainable.

It was held by the Appellate tribunal that 

"In our view the approach of the Ld. Authority is erroneous. The Hon'ble Apex Court in case Wg. Cdr. Arifur Rahman Khan and Aleya Sultana and others vs. DLF Southern Homes Pvt. Ltd. (now known as BEGUR OMR Homes Pvt. Ltd.) and others 2020(3) R.C.R.(Civil) 544 has laid down as under:-

“The developer in the present case has undertaken to provide a service in the nature of developing residential flats with certain amenities and remains amenable to the jurisdiction of the Consumer Fora. Consequently, we are unable to subscribe to the view of the NCDRC that flat purchasers who obtained possession or executed Deeds of Conveyance have lost their right to make a claim for compensation for the delayed handing over of the flats.”

In view of the aforesaid ratio of law laid down by the Hon'ble Apex Court, the allottees will not lose their right to claim interest for delayed possession merely on the ground that the conveyance deed had already been executed. The execution of the conveyance deed cannot extinguish the cause of action which had already accrued to the allottee due to delay in delivery of possession. Thus, the impugned order passed by the Ld. Authority is not sustainable. Consequently, the present appeal is hereby allowed. The impugned order dated 19.12.2019 is hereby set aside.

Provisions of the special Act always override the provisions of the general law

 In the Matter of M/s Apex Buildwell Pvt. Ltd. V/s Sachin Kumar,Appeal No.240 of 2019 decided on 09.02.2021 before THE HARYANA REAL ESTATE APPELLATE TRIBUNAL it was held that

"We do not find any substance in the contentions raised by learned counsel for the appellant that in order to claim the compensation for delay in delivery of possession, the respondent /allottee was required to establish the loss suffered by him as provided in Section 74 of the Indian Contract Act, 1872. The provisions for grant of damage on account of the breach of contract provided in Section 74 of the Indian Contract Act are the general provisions. Whereas Section 18 of the Act is a special provision dealing with consequences on account of the failure of the promoter to complete the project by the date specified in the agreement for sale. The proviso to Section 18(1) of the Act categorically provides that where an allotee does not intend to withdraw from the project, he shall be paid by the promoter the interest for every month of delay till handing over of the possession at such rate as may be prescribed. Thus, the proviso to Section 18(1) of the Act stipulates that the allottee shall be entitled to interest at the prescribed rate for the delay in delivery of possession beyond the date stipulated in the agreement for sale. It is nowhere mentioned in Section 18 of the Act that in order to claim the interest for delayed delivery, the allottee has to prove the loss. Simple failure of the promoter to deliver the possession by the date specified in the agreement for sale, will make the allottee entitled for the interest provided in the proviso to Section 18(1) of the Act. It is settled rule of interpretation that the provisions of the special Act always override the provisions of the general law. So, the provisions of the Act will override Section 74 of the Indian Contract Act which is the general law."

The interest provided in proviso to section 18(1) of the Act is the return for his money used by the promoter

 In the Matter of M/s Apex Buildwell Pvt. Ltd. V/s Sachin Kumar,Appeal No.240 of 2019 decided on 09.02.2021 before THE HARYANA REAL ESTATE APPELLATE TRIBUNAL it was held that

“the interest is a premium paid for the use of money. Ordinarily a person who is deprived of his money to which he is legitimately entitled as of right is entitled to interest for the period his money is used by the other person.”

it was also held that

“the interest provided in proviso to section 18(1) of the Act is an interest simplicitor which is available to an allottee who does not intent to withdraw from the project as a return for his money used by the promoter, who caused delay in the delivery of the possession. Thus, the interest for delayed possession cannot be construed to be the compensation in strict sense to fall within the purview of Sections 71 and 72 of the Act read with rule 29 of the Rules.”

Grant of relief of compensation can only be adjudicated by the adjudicating officer,if compensation is provided as a part of the multiple reliefs, the complaints have to be placed before the adjudicating officer.

 In the Matter of Sameer Mahawar Vs. MG Housing Pvt. Ltd. Complaint no. appeal no. 6/2018 decided on 02.05.2019  before Haryana Real Estate Appellate Tribunal

In this order after taking into consideration the provisions of Sections 11(4), 12, 14, 18, 19, 31, 34(f),  37, 38 and 71 of the Real Estate (Regulation and Development) Act, 2016 (hereinafter called the Act) and rule 28 & 29 of Haryana Real Estate (Regulation and Development) Rules, 2017 (hereinafter called the rules). The Honourable Appellate tribunal added that. “ Thus, as a result of our aforesaid discussions, we conclude and sum up our considered view in following manner :-

(i) That violations and causes of actions arising out of the same bundle of facts/rights giving rise to the multiple reliefs shall be placed before one and the same forum for adjudication in order to avoid the conflicting findings. 

(ii) The complaints for the grant of relief of compensation can only be adjudicated by the adjudicating officer as per the provisions of section 71 of the Act and rule 29 of the Rules. 

(iii) Similarly, if compensation is provided as a part of the multiple reliefs alongwith refund/return of investment with interest flowing from the same violation/violations and causes of action, the complaints have to be placed before the adjudicating officer exercising the powers under 3 Sections 31, 71(1) read with rule 29 of the Rules as only the adjudicating officer is competent to deal with the relief of compensation.”