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Court noted that respondent-developer failed to handover the possession of the flat, so NCDRC erred in directing flat buyers to pay interest on balance payment
The Supreme Court has allowed an appeal by home buyers against the National Consumer Disputes Redressal Commission's direction to pay interest on balance payment of a high-end flat, despite delay in delivery of housing units and payment of 90% of total sale consideration.
A bench of Justices B R Gavai and Sandeep Mehta directed Pioneer Urban Land & Infrastructure Ltd and another to convey the outstanding amount to appellants Sanjay Chaudhary and another within a period of two months.
The court also directed the developer that upon payment being made, the possession of the flat in question should be handed over to the appellants forthwith and not later than a period of 30 days from the date of final payment being made.
The appellants were aggrieved by the direction passed by the Commission on January 23, 2023 giving liberty to the respondent developer to charge interest at the rate of 9% per annum on the balance amount (except stamp duty and registration charges) from November 14, 2017 till the date of payment from the appellants homebuyers.
The appellants contended they had made payment of 90% of the total sale consideration of the flat in question to the respondent-developer till June 23, 2014. The said amount ran to nearly Rs 2,21,56,942.42 as total consideration for 4111 sq ft super area and amenities being Rs 2,38,20,932.
The bench noted that admittedly the respondent-developer failed to handover the possession of the flat to the appellants-homebuyers by the scheduled date i.e. March 16, 2014 upon which the consumer dispute came to be registered.
"We are of the view that the Commission erred in directing that the opposite party i.e. respondent-developer shall be entitled to charge interest at the rate of 9% per annum from the appellants-homebuyers on the balance amount (except stamp duty and registration charges) from 14th November, 2017 till the date of payment," the bench noted.
The bench, thus, quashed and set aside the said part of the order whereby the respondent-developer had been permitted to charge interest at the rate of 9% per annum on the balance amount.
Case Title: Sanjay Chaudhary and Anr Vs Pioneer Urban Land & Infrastructure Ltd and Anr
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