IREO GRACE REALTECH PVT. LTD. versus ABHISHEK KHANNA & OTHERS

IREO GRACE REALTECH PVT. LTD. versus ABHISHEK KHANNA & OTHERS

The 42-month commitment period in the Apartment Buyer’s Agreement is to be computed from the date on which mandatory pre-conditions in the sanctioned Building Plans (including the Fire NOC) were fulfilled (here 27.11.2014), one-sided and oppressive clauses in the Apartment Buyer’s Agreement constitute unfair trade practice and cannot be enforced to bind buyers, remedies under the Consumer Protection Act are additional to RERA remedies, and where possession/OC had not been granted the affected buyers are entitled to refund with interest; specific relief awarded was refund of amounts to affected buyers with interest at 9% p.a. from 27.11.2018 (with default interest 12% p.a. for delay) and...

Parties
Appellant Developer: IREO Grace Realtech Pvt. Ltd.; Respondents Apartment Buyers: Abhishek Khanna & Others
Jurisdiction
India
Judgment Date
11 January 2021
Procedural Posture
Civil Appeal / Appeal From National Consumer Disputes Redressal Commission
Outcome
Appeals disposed of
Legal Topics
Unfair Trade Practice, Apartment Buyer's Agreement, Delay Compensation, RERA Vs Consumer Protection Act, Possession Date Calculation, Refund With Interest, Fire NOC Requirement
Consumer Protection Real Estate Law Contract Law Unfair Trade Practice Apartment Buyer's Agreement Delay Compensation RERA Vs Consumer Protection Act Possession Date Calculation +2 more

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Parties

IREO Grace Realtech Pvt. Ltd.

Appellant Developer

Abhishek Khanna & Others

Respondents Apartment Buyers

Procedural Posture

Civil Appeal / Appeal From National Consumer Disputes Redressal Commission

Legal Issues

  1. 1 Determination of the relevant date from which the 42 months period for handing over possession is to be calculated (date of Building Plan sanction vs date of Fire NOC)
  2. 2 Whether terms of the Apartment Buyer’s Agreement were one-sided and unenforceable against apartment buyers
  3. 3 Whether remedies under the Real Estate (Regulation & Development) Act, 2016 (RERA) have primacy over remedies under the Consumer Protection Act, 1986

Ratio Decidendi

The 42-month commitment period in the Apartment Buyer’s Agreement is to be computed from the date on which mandatory pre-conditions in the sanctioned Building Plans (including the Fire NOC) were fulfilled (here 27.11.2014), one-sided and oppressive clauses in the Apartment Buyer’s Agreement constitute unfair trade practice and cannot be enforced to bind buyers, remedies under the Consumer Protection Act are additional to RERA remedies, and where possession/OC had not been granted the affected buyers are entitled to refund with interest; specific relief awarded was refund of amounts to affected buyers with interest at 9% p.a. from 27.11.2018 (with default interest 12% p.a. for delay) and...

Court Disposition

Appeals disposed of

Orders

  • The 42 months commitment period under Clause 13.3 is to be computed from the date of issuance of the Fire NOC (27.11.2014); the relevant Commitment Period plus 6 months' grace thus ran to 27.11.2018
  • Apartment buyers whose units are in Phase II (where Occupation Certificate had not been granted) are entitled to refund of the entire amounts deposited by them with interest at 9% simple per annum from 27.11.2018 until payment; refund to be made within three months of this judgment and if delayed Developer shall pay...