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Allahabad High Court Upholds Interest for Delayed Flat Possession
A homebuyer paid for a flat that was supposed to be ready in 2012.
The developer offered the flat only in 2017.
The buyer accepted the flat but still asked for money because of the long delay.
The Allahabad High Court said accepting the flat did not cancel that right.
The developer said a court order about the Okhla Bird Sanctuary had stopped construction.
The High Court said the deadline had already been missed before that order began.
It also said the project’s completion and the claimed construction stoppage could not both be used as arguments.
The developer must therefore pay interest for the delayed period.
The Allahabad High Court held that accepting a delayed flat does not remove a homebuyer’s right to claim statutory interest.
Shyam Sunder Agrawal booked a flat in 2010, with possession due by November 2012 but offered only in May 2017.
The court upheld interest on his deposits from December 2012 to May 2017 at one percentage point above the applicable Marginal Cost of Fund Based Lending Rate.
Antriksh Developers argued that construction delays resulted from a National Green Tribunal restriction near the Okhla Bird Sanctuary.
The court said the developer’s default began before the restriction and dismissed its appeal.
- Who
- Homebuyer Shyam Sunder Agrawal and Antriksh Developers and Promoters Pvt Ltd; the Allahabad High Court decided the dispute.
- What
- The court upheld an order requiring the developer to pay interest for delayed possession of a flat.
- Where
- The dispute concerned the Antriksh Golf View project in Sector 78, Noida, and was decided by the Lucknow bench of the Allahabad High Court.
- When
- The flat was booked in 2010, possession was due by November 2012, and possession was offered in May 2017; the ruling was reported on September 24.
- Why
- The developer missed the contractual possession deadline, and the court said a later National Green Tribunal restriction could not erase the delay that had already occurred.
Homebuyer’s Position
Developer’s Position
Right to delayed-possession interest
Homebuyer’s Position
Accepting the flat did not waive Agrawal’s statutory right to claim interest for the period when possession was delayed.
Developer’s Position
The developer challenged the order directing it to pay interest on the buyer’s deposited amount.
Cause of the delay
Homebuyer’s Position
The buyer’s claim was supported by the missed contractual deadline and the late possession offer without the occupancy certificate and other necessary documents, according to the court.
Developer’s Position
The developer argued that a National Green Tribunal order restricting construction and occupancy certificates near the Okhla Bird Sanctuary caused the delay.
Effect of the NGT restriction
Homebuyer’s Position
The court held that the developer had already defaulted before the NGT restriction came into force, so any recognized zero-period could not remove the earlier delay.
Developer’s Position
The developer relied on the restriction as a reason for the delayed completion and possession.
Key facts
- Homebuyer
- Shyam Sunder Agrawal
- Developer
- Antriksh Developers and Promoters Pvt Ltd
- Project
- Antriksh Golf View, Sector 78, Noida
- Booking date
- 2010
- Contractual possession deadline
- November 2012
- Actual possession offer
- May 2017
- Interest period and rate
- December 2012 to May 2017, at one percentage point above the Marginal Cost of Fund Based Lending Rate
Sources
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