Delay in possession of property by the builder -Subsequent purchasers entitled to compensation

National Consumer Commission Awards Delay Compensation to Homebuyers in Emaar MGF Land Case, Subsequent Purchasers Entitled to Same Compensation Rights as Original Allottees, Rules Commission

In a significant ruling, the National Consumer Disputes Redressal Commission (NCDRC) has directed Emaar MGF Land Ltd. to compensate homebuyers for delays in possession of their apartments. The Commission's decision highlights that subsequent purchasers of property possess the same rights and liabilities as the original allottees in terms of entitlement to delay compensation.

The judgment, delivered by Dr. Inder Jit Singh and Dr. Sudhir Kumar Jain, addressed two consolidated consumer complaints filed by Priya Singhania and her sister, Jaya Singhania, against Emaar MGF Land Ltd. The complaints pertained to the delay in handing over possession of apartments in the Premier Terraces and Sky Terraces projects.

In Consumer Complaint No. 1370 of 2017, the NCDRC ruled that the complainants, being subsequent purchasers, stepped into the shoes of the original allottee and were entitled to delay compensation from the committed date of possession. The Commission awarded a 6% per annum interest for the period from March 2011 until the possession was offered on February 24, 2018.

Similarly, in Consumer Complaint No. 2361 of 2017, the Commission determined that the complainant, as the original purchaser, was entitled to delay compensation at a rate of 6% per annum for the period from June 25, 2013, to April 14, 2015. The Commission rejected Emaar MGF Land Ltd.'s contention that the complainant was not entitled to compensation due to non-adherence to the payment schedule, emphasizing that time is the essence of the contract for both parties.

The NCDRC also ordered Emaar MGF Land Ltd. to pay litigation costs of Rs. 25,000/- to each complainant. The payments are to be made within 45 days of the order, failing which an interest rate of 9% per annum will be applicable from the expiry of the 45-day period until the actual payment is made.

This ruling underscores the importance of adhering to contract timelines and offers relief to homebuyers facing similar issues with delayed possession.

Bottom Line:

Delay in possession of property by the builder - Entitlement of subsequent purchasers and original allottees to delay compensation - Time is the essence of the contract for both parties - Compensation at 6% p.a. awarded for the period of delay.

Statutory provision(s): Consumer Protection Act, 1986

Priya Singhania v. Emaar MGF Land Ltd., (NCDRC)(New Delhi) : Law Finder Doc Id # 2768799