WB REAT Facilitates Settlement Between Builder And Homebuyer Over Termination Of Flat Booking Due To Non-Payment Of Total Consideration

West Bengal Real Estate Appellate Tribunal (Tribunal) bench, comprising Justice Rabindranath Samanta (Chairperson) and Dr. Subrat Mukherjee (Administration Member), oversaw and facilitated a settlement between a builder and a homebuyer.The homebuyer had purchased a flat in the builder's project, but his booking was terminated by the builder after he failed to pay the remaining amount on time. Background FactsThe Homebuyer (Appellant) booked a flat in the builder's (Respondent) project named ONE 10 situated at Mouza — Thakdari under Bidhannagar Municipal Corporation, North 24 Parganas. Both the homebuyer and builder entered into an agreement for sale which was registered on July 7, 2020.The total sale consideration for the flat was Rs. 84,46,049/- of which the homebuyer paid Rs. 60,93,183.18/- to the builder. When the homebuyer failed to pay the remaining dues the builder requested the payment. Upon failure to receive the payment the builder terminated the homebuyer booking through a termination letter dated January 12, 2023.After terminating the booking the builder filed a complaint before the authority. In its order dated April 29, 2024, the authority stated that they had no objection to the builder unilaterally canceling the agreement for sale. Furthermore the authority directed the builder to refund the balance amount after deducting the booking amount of Rs. 8,44,605/- as per the agreement for sale. Being aggrieved by the authority order the homebuyer filed an appeal before the Tribunal.Observation and Direction by AuthorityDuring the pendency of the matter, the Tribunal directed both the homebuyer and the builder to enter into a settlement agreement on July 30, 2024. As part of this agreement the homebuyer decided to remain in the project.However, some issues arose regarding the deed of conveyance and registration. Therefore, the Tribunal directed the homebuyer to pay Rs. 3,37,843/- as stamp duty and Rs. 75,720/- as registration fees to the builder by November 6, 2024. Additionally the Tribunal directed the builder to execute and register the deed of conveyance in favor of the homebuyer by November 14, 2024.Finally the Tribunal disposed of the appeal after noting that the homebuyer had paid the amount as directed and the builder had executed and registered the deed of conveyance in favor of the homebuyer. Consequently the Tribunal revoked the termination letter that canceled the booking of the flat and set aside the authority order dated April 29, 2024.Case – Smt. Seema Pandey Versus M/s P.S. Group Realty Pvt. Ltd.Citation – WBREAT / APPEAL No. - 009/2024 Order – 18/11/24Click Here To Read/Download Order

WB REAT Facilitates Settlement Between Builder And Homebuyer Over Termination Of Flat Booking Due To Non-Payment Of Total Consideration

Aryan Raj

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