Case Note & Summary
These Second Appeals were filed before the High Court of Judicature at Bombay by Runwal Constructions, a registered partnership firm, challenging the order dated 1 November 2018 passed by the Maharashtra Real Estate Appellate Tribunal, Mumbai. The dispute pertained to claims of interest for delayed possession by various allottees (flat purchasers) in a real estate project. The allottees had filed complaints before the Competent Authority under the Real Estate (Regulation and Development) Act, 2016 (RERA), seeking interest for delay in handing over possession. The Competent Authority, by orders dated 2 April 2018 (and one dated 21 May 2018), declined to award interest, instead directing the builder to expedite the project and forbidding unilateral cancellations. Aggrieved, the allottees appealed to the Maharashtra Real Estate Appellate Tribunal, which allowed the appeals and directed the promoter (builder) to pay interest at 10.05% per annum from 1 February 2014 until actual possession. The builder then filed these ten Second Appeals before the High Court, along with various connected Civil Applications, challenging the Appellate Tribunal's order. The High Court heard the matters over multiple dates, reserving judgment on 29 January 2026 and pronouncing its judgment on 8 June 2026. The judgment text provided to this analysis is incomplete and does not contain the court's substantive reasoning, the submissions of the parties, the legal issues framed, the ratio decidendi, or the final decision of the High Court. Only the procedural background and the operative orders of the lower authorities are set out. The core legal question likely involved the correctness of the Appellate Tribunal's direction to pay interest under the RERA provisions. The High Court's final determination on the Second Appeals is not available from the extracted text. Consequently, it is not possible to state whether the court quashed, upheld, or modified the impugned order, or to analyze the legal principles that guided the decision.
Issue of Consideration
SECOND APPEAL NO.251 OF 2022
Case Details
2026 LawText (BOM) (06) 105
Second Appeal Nos. 251, 253, 254, 255, 256, 257, 258, 259, 260, 261 of 2022 with connected Civil Applications
For Appellants: Mr. Atul Damle, Senior Advocate; Mr. Rajiv Chavan, Senior Advocate; Mr. Ashish Kamat, Senior Advocate; Mr. Saket Mone; Mr. Rubin Vakil; Mr. Ditendra Mishra, Advocate. For Respondents: Mr. Anjani Kumar Singh, Advocate.
Runwal Constructions (Runwal & Omkar Esquare, Mumbai), a registered partnership firm
Bharat Shah, Nitin Korgaonkar, Pravir Karmokar, Garfield Deepak D'Souza, Satish Kumar & Ors., Satish Maruti Shirsekar, Sudhir Ray, Prachi Chindarkar, Samira Sultana Halim Mohammed, Parag Chandrakant Sawant & Anr.
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Nature of Litigation
Second Appeals under the Real Estate (Regulation and Development) Act, 2016 arising from the order of the Maharashtra Real Estate Appellate Tribunal directing payment of interest for delayed possession of residential units.
Remedy Sought
The appellant builder seeks to set aside the order dated 1 November 2018 passed by the Designated Appellate Tribunal and restore the orders of the Competent Authority which had not awarded interest.
Filing Reason
The allottees filed complaints before the Competent Authority under RERA claiming interest for delayed possession. The Competent Authority did not grant interest, so the allottees appealed to the Appellate Tribunal, which directed the builder to pay interest. The builder then approached the High Court via Second Appeals.
Previous Decisions
Competent Authority, by orders dated 2 April 2018 (and 21 May 2018 in one case), directed the builder to expedite the project and restrained it from unilateral cancellations but did not award interest to the allottees. The Designated Appellate Tribunal (President, Maharashtra Revenue Tribunal and Incharge, Maharashtra Real Estate Appellate Tribunal) allowed the allottees' appeals on 1 November 2018 and directed the promoter to pay interest at 10.05% per annum from 1 February 2014 till handing over actual possession.
Judgment Excerpts
The challenge in this group of 10 Second Appeals is to the Order dated 1st November 2018 passed by the learned President, Maharashtra Revenue Tribunal, Mumbai and Incharge, Maharashtra Real Estate Appellate Tribunal, Mumbai (“Designated Appellate Tribunal”) in respective individual Appeals filed by the respective Respondents/Allottees.
The Competent Authority inter alia passed following directions:- “4. In view of the above, the Respondent is hereby again directed to make serious efforts to expedite the process of obtaining the required sanctions/approvals for recommencing the project work at the earliest and to complete the construction work of the said project in a time-bound manner. Respondent shall also not unilaterally execute any cancellations in the said project, with respect to the Complainants in the present complaint. 5. Consequently, the matters are disposed of.”
The learned Designated Appellate Tribunal inter alia passed following operative Order : “2. The Promoter/Respondent to pay interest to the Allottees @ 10.05% p.a. effective from 1st February 2014 till handing over actual possession. 3. The Promoter/Respondent to complete Buildi...”
Procedural History
The allottees filed individual complaints before the Competent Authority under RERA, seeking interest for delayed possession in a real estate project by Runwal Constructions. The Competent Authority passed orders mainly on 2 April 2018 (one on 21 May 2018), directing the builder to expedite the project and not to cancel bookings, but declined to award interest. The allottees then appealed to the Maharashtra Real Estate Appellate Tribunal, Mumbai. By order dated 1 November 2018, the Designated Appellate Tribunal set aside the Competent Authority's orders and directed the promoter to pay interest at the rate of 10.05% per annum from 1 February 2014 until actual possession. Runwal Constructions challenged this order by filing Second Appeals before the High Court of Judicature at Bombay, along with various Civil Applications for stay and other reliefs. The High Court heard the matters and reserved judgment on 29 January 2026. Judgment was pronounced on 8 June 2026. The substantive text of the High Court's judgment is not available in the provided extract.
Acts & Sections
- Real Estate (Regulation and Development) Act, 2016:
