M/S LAUREATE BUILDWELL PVT. LTD. versus CHARANJEET SINGH

M/S LAUREATE BUILDWELL PVT. LTD. versus CHARANJEET SINGH

A subsequent purchaser who steps into the shoes of an original allottee may, depending on the facts, be entitled to refund of the principal with interest; the Court held that previous categorical rulings denying interest to subsequent purchasers are not good law and directed that interest be awarded at 9% per annum...

Source-derived case information.

Parties
Appellant: M/S Laureate Buildwell Pvt. Ltd.; Respondent: Charanjeet Singh
Jurisdiction
India
Judgment Date
22 July 2021
Procedural Posture
Civil Appeal / Appeal From the Order of the National Consumer Disputes Redressal Commission Dated 29 05 2019 in Consumer Complaint No.1183 of 2017
Outcome
Appeal partly allowed; impugned NCDRC order modified
Legal Topics
Refund of Consideration, Interest on Refund, Rights of Subsequent Purchaser (re Allottee), Delay in Delivery/possession, Force Majeure, Occupancy Certificate
Consumer Protection Contract Equity Real Estate/housing Refund of Consideration Interest on Refund Rights of Subsequent Purchaser (re Allottee) Delay in Delivery/possession +2 more

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Parties

M/S Laureate Buildwell Pvt. Ltd.

Appellant

Charanjeet Singh

Respondent

Procedural Posture

Civil Appeal / Appeal From the Order of the National Consumer Disputes Redressal Commission Dated 29 05 2019 in Consumer Complaint No.1183 of 2017

Legal Issues

  1. 1 Whether a subsequent purchaser (re-allottee) who steps into the shoes of an original allottee is entitled to refund with interest where the builder fails to deliver possession within the stipulated time
  2. 2 Whether precedents that deny interest to subsequent purchasers (HUDA v. Raje Ram and Wing Commander Arifur Rahman Khan) remain good law
  3. 3 What is the appropriate rate and period for grant of interest where the builder acknowledged the transfer or acquired knowledge of it

Ratio Decidendi

A subsequent purchaser who steps into the shoes of an original allottee may, depending on the facts, be entitled to refund of the principal with interest; the Court held that previous categorical rulings denying interest to subsequent purchasers are not good law and directed that interest be awarded at 9% per annum from the date the builder acquired knowledge of or acknowledged the transfer (in the present case at least from April 2016).

Court Disposition

Appeal partly allowed; impugned NCDRC order modified

Orders

  • Impugned order of the NCDRC modified to direct refund of the principal amounts with interest at 9% per annum from the date the builder acquired knowledge of the transfer or acknowledged it
  • In the present case interest to be allowed at least from April 2016 (date builder was intimated)