Buyer can refuse to purchase property in case of delay in giving possession


Purchasing a new house is a life-time dream of every family. Individuals and families invest in new under-construction schemes offering attractive propositions and prospects. However, there is certain waiting period before the possession of the property is delivered to the buyer.

When a flat is purchased and subsequently allotted, there is generally a time period prescribed before which the possession of the property could be handed over to the buyer. However, there is a general increase in tendency of handing over the late possession in some sections of real estate developers which causes lose to the purchasers in form of rent and interest and after a considerable period of delay, the buyer is asked to purchase the same without any or negligible compensation towards to the same and is compelled to purchase the same.

This practice of compelling the buyer to purchase the property late and delayed then promised period has been held to be unfair trade practice by NCDRC and in landmark decision, after considering previous case-laws, the Commission has held that when there is delay in delivering the possession of property, the buyer has the right to refuse to purchase the property as well as is entitled to receive the amount paid with interest as compensation. The Commission in the case of Thangavel Palanivel & Anr v. Ms. DLF Souther Homes Pvt. Ltd. has held that ‘When this matter last came up for hearing on 29.7.2016, the learned counsel for the opposite party stated that they are ready and willing to provide an independent door, giving access to the room which was previously described as servant room at the cost of the opposite party.  The complainant however, declined the said offer, on the ground that no such offer was made either in the written version or in the affidavit filed by the opposite party by way of evidence.  In my view, since the opposite party committed default in performing its contractual obligation, by failing to offer possession of the flat to the complainants on or before the date committed in the Buyers Agreement, the complainants cannot be compelled to accept the possession of the said flat at this belated stage.  In the facts and circumstances of the case, including the fact that neither the possession as offered by the committed date nor did the opposite party provide an independent entrance to the servant room, despite having promised to do so, the complainants are entitled to insist upon refund of the amount paid by them to the opposite party, along with appropriate compensation in the form of interest on that amount’

Full Judgement -> Thangavel Palanivel & Anr. v. M/s. DLF Southern Homes Pvt. Ltd.


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