Accepting Delayed Flat Possession Does Not Bar Interest Claim: Allahabad HC

 

Lucknow: The Allahabad High Court has ruled that a homebuyer does not lose the right to claim interest for delayed possession merely because the buyer subsequently accepts the flat.

The ruling came in a dispute involving Antriksh Developers and Promoters Pvt Ltd and a homebuyer of its Antriksh Golf View project in Sector 78, Noida. The buyer had booked the flat in 2010, with possession promised by November 2012. However, possession was offered only in May 2017.

The RERA Appellate Tribunal had directed the developer to pay interest on the amount deposited by the buyer for the delay period from December 2012 to May 2017.

The developer argued that the delay was linked to restrictions imposed by the National Green Tribunal around the Okhla Bird Sanctuary. The High Court rejected the argument, observing that the contractual possession deadline had already expired before the NGT restriction came into effect in August 2013.

The court also observed that RERA does not prescribe a specific limitation period for claiming interest arising from delayed possession. It therefore upheld the direction for payment of interest and dismissed the developer's appeal.

The ruling reinforces that accepting a delayed property does not, by itself, amount to giving up an accrued statutory claim for delay-related interest.

By : The Realty Times — Real Estate News, Property Insights & Market Updates