Haryana RERA Holds 3 Years To Be Reasonable Time For Filing Complaints, Dismisses Homebuyer's Complaint Against Emaar

Haryana Real Estate Regulatory Authority (Authority) bench comprising of Ashok Sangwan (Member), held that while the RERA Act, 2016 does not contain any specific provision imposing a limitation period, a delay of more than three years in approaching the Authority is unreasonable. In doing so, the Authority departed from its earlier stance where it had allowed a homebuyer's complaint even though it was filed more than six years after the offer of possession. Previously, several RERA authorities including Haryana RERA had taken the view that limitation did not apply to RERA complaints due to the non-obstante clause in Section 89, which gives the Act overriding effect over any other inconsistent law. Background Facts Homebuyer (Complainant) purchased a flat in the builder's (Respondent) project named “Gurugram Greens” located in Sector 102 from the original allottee in 2020. The total sale consideration for the flat was Rs. 89.34 lakhs and the homebuyer paid a total of Rs. 95.25 lakhs to the builder. Builder Buyer Agreement was executed on 4 April 2013. As per the agreement, the builder was contractually obligated to hand over possession within 36 months from the start of construction which began on 14 June 2013. Accordingly, the builder was required to hand over possession by 13 June 2016. However, possession was actually given on 28 September 2020 after a delay of over four years. The conveyance deed was executed later on 17 December 2021. Due to this delay, the homebuyer approached the authority seeking delayed possession charges on the amount paid. Contentions by Emaar Builder argued that the complaint is barred by limitation. According to them, the offer of possession was made on 12 December 2018, which is when the cause of action for claiming delay compensation arose. However, the complaint was filed on 23 April 2024, after a delay of more than five years. Builder claimed that the homebuyer cannot be allowed to sleep over their rights and wake up at any time they choose. They further argued that they cannot be held accountable indefinitely or kept under pressure without any time limit. Observation and Direction by Authority Authority noted that while the law of limitation does not strictly apply to proceedings under the RERA, 2016, it must still be guided by principles of natural justice under Section 38 of the Act. To prevent opportunistic and frivolous litigation, the Authority held that a reasonable time limit should be considered. In its view, a period of three years is reasonable for a homebuyer to initiate legal action to assert their rights under normal circumstances. Authority observed that the cause of action began on 12 December 2018 when the builder offered possession. Complaint was filed much later on 30 April 2024 after a delay of over 5 years. Authority held that the complaint was delayed beyond a reasonable period and is barred by limitation. As a result, the authority dismissed the complaint. Case – Kamal Singhal Vs Emaar MGF Land Limited Citation – Complainant No 1885 of 2024Click Here To Download Order/Judgement

Haryana RERA Holds 3 Years To Be Reasonable Time For Filing Complaints, Dismisses Homebuyer's Complaint Against Emaar

Aryan Raj

Tags