WBREAT Directs Builder To Hand Over Possession Of Flat To Homebuyer And Pay Interest For Delay

Background Facts

The homebuyer (Respondent) purchased a flat with a car parking space in the builder's (Appellant) project named 'Southern Sky,' located in Narendrapur, South-24 Parganas, West Bengal for a total sale consideration of Rs. 44,27,400.

An agreement for sale was executed on April 12, 2021, under which the builder was required to hand over possession by January 12, 2022. The homebuyer initially applied for a home loan from SBI but was denied due to the builder's failure to provide a conversion certificate. The builder then compelled him to take a loan from LIC HFL and registered the flat, promising possession within a month. However, despite paying the full consideration possession was not handed over.

Aggrieved, the homebuyer approached the West Bengal Real Estate Regulatory Authority (Authority). Through its order, the Authority directed the builder to pay interest for the delay, deliver possession and execute the conveyance deed in favor of the homebuyer. It also directed the homebuyer to pay interest to the builder for delayed payment.

Challenging this order, the builder filed an appeal before the Tribunal.

Observation and Direction by Tribunal

Tribunal held that the builder had not completed the project and as per law he could not permit the homebuyer to occupy the flat without obtaining a Completion Certificate or Occupancy Certificate.

Tribunal further held that since the builder failed to obtain the completion and occupancy certificates as required under the West Bengal Municipal Act, 1993 and the West Bengal Municipal (Building) Rules, 2007, the project and the flat could not be considered complete.

Tribunal noted that the agreement for sale required the builder to hand over possession by January 12, 2022. However, due to the builder's failure to provide a conversion certificate, the homebuyer could not secure a loan from SBI and instead took a loan from LIC HFL and made the full payment at registration on June 25, 2022.

Therefore, the Tribunal directed the builder to obtain the Completion and Occupancy Certificates, issue a possession notice to the homebuyer and hand over the flat and car parking.

Tribunal also directed the builder to pay interest on Rs. 44,27,400 from June 25, 2022, until possession is delivered to the homebuyer. Furthermore, the Tribunal directed the homebuyer to pay the remaining Rs. 3,74,742 to the builder before or on the possession date.

Case – Shri Joydeep Majumder & Senco Infrastructure Pvt. Ltd. Versus Sudip Kumar De

Citation – WBREAT/APPEAL NO. – 006/2024

Date - 17.09.2024

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