IS BUILDER REALTOR LIABLE TO PAY COMPENSATION TO CONSUMER FOR DELAYED POSSESSION?

          Supreme Court, Delhi High Court, Advocate, Legal, Law,

Normally, whenever a man buys a house from the builder/ developer, contract provides for a delivery period (Generally 3 years) and also for an extension (Generally 6 months). The contract generally further provides for payment of interest in case of delay in payment by the Buyer and Compensation (which is a meager amount) in case of delayed possession by the Builder. 

 

Since the Compensation by the Builder is very meager, as per the Contract. Therefore the Question which arose for the consideration of Supreme Court was whether Courts can award any compensation exceeding the Contract ?


Supreme Court awards compensation to buyer 


Supreme Court in the matter of Arifur Rahman Khan Vs. DLF Southern Homes Pvt. Ltd. (decided on 24-08-2020) gave Judgment in favour of Buyers and provided for Compensation over and above what is provided under the Contract. In addition to the compensation provided under the contract, Supreme Court also awarded interest in favour of the buyers.

 

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