3 weeks ago
High Court fines builder for harassing homebuyer for 13 years
A woman in India wanted to buy a home, so she gave a builder a lot of money for a flat in 2011.
The builder promised she could move in by June 2013.
The woman paid almost all the money, but the builder never finished the building.
She had to wait and fight in court for more than 13 years.
A group called RERA told the builder to give her the flat and pay extra money for being late.
The builder kept trying to appeal instead of doing what was ordered.
Finally, the Allahabad High Court got very upset with the builder.
The judge said the builder was being unfair and wasting everyone's time.
The court told the builder to pay the woman Rs 2.5 lakh as a punishment.
The builder has to pay this money within four weeks.
The Allahabad High Court imposed Rs 2.5 lakh in costs on a builder for pursuing 'frivolous' and 'vexatious' litigation against a woman homebuyer.
The woman booked a flat in 2011 and paid Rs 35.9 lakh after the builder promised possession by June 2013.
In July 2018, RERA directed the builder to hand over possession immediately and pay 24 per cent interest for the delay from June 30, 2013.
The high court rejected the builder's claim that possession was handed over in 2017, noting the project lacked an occupancy certificate.
Justice Prashant Kumar, in a July 31 order, directed the builder to pay the Rs 2.5 lakh costs to the homebuyer within four weeks.
- Who
- Justice Prashant Kumar of the Allahabad High Court, a builder, and a woman homebuyer in Uttar Pradesh.
- What
- The court imposed Rs 2.5 lakh in costs on the builder for frivolous litigation that delayed the homebuyer's flat possession for over 13 years.
- Where
- Allahabad High Court, Uttar Pradesh, India.
- When
- Order passed on July 31; the flat was booked in 2011 with possession promised by June 2013, and RERA ruled in July 2018.
- Why
- The builder received nearly the full sale consideration but failed to complete the project or deliver possession, frustrating the Real Estate (Regulation and Development) Act, 2016.
Court and homebuyer
Builder
Possession of flat
Court and homebuyer
Possession was never legally handed over because the project lacked an occupancy certificate, so the flat could not be delivered.
Builder
The builder claimed possession was handed over on July 8, 2017, the same day the buyer paid her final instalment.
Payment timeline
Court and homebuyer
The court said the buyer paid almost the entire sale consideration and was still kept waiting for over 13 years.
Builder
The builder argued the buyer had not completed payment in 2013 and paid the final instalment only on July 8, 2017.
Delay in restoration application
Court and homebuyer
The court said the builder filed the restoration application well after the limitation period expired and without proper reasons.
Builder
The builder submitted that the over-two-year delay was not deliberate and that the tribunal failed to consider the reasons given.
Key facts
- Court
- Allahabad High Court
- Judge
- Justice Prashant Kumar
- Costs imposed
- Rs 2.5 lakh
- Flat booking year
- 2011
- Amount paid by buyer
- Rs 35.9 lakh
- Promised possession
- June 2013
- RERA order
- July 2018; 24% interest from June 30, 2013
- Payment deadline
- Within four weeks of July 31 order
Quotes
Justice Prashant Kumar
Judge of the Allahabad High Court
“After lapse of more than 13 years and receipt of almost the entire consideration amount, the builder has failed to complete the project and deliver possession of the flat to the respondent.”
indianexpress.com
“The respondent, who is a lady, had spent huge money, time and effort on the litigation because of the appellant’s fault.”
indianexpress.com
Sources
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