Case Note & Summary
The judgment arose from a Second Appeal filed by Sanklecha Constructions Pvt. Ltd. and its directors against the Maharashtra Real Estate Appellate Tribunal's orders regarding the refund of amounts paid by allottees for a residential project named 'Waterways'. The allottees had booked a flat in the project but faced delays in possession delivery, leading them to file a complaint with MahaRERA. Initially, MahaRERA allowed the allottees to withdraw from the project and directed the promoter to refund the amounts paid along with interest, with the option to do so after obtaining an occupation certificate (OC). The allottees challenged this option, leading to the Appellate Tribunal's order that removed the option and mandated immediate refund with interest from the date of payment. The promoters contended that the Appellate Tribunal's decision disregarded mitigating circumstances affecting project completion and sought to reinstate the option to refund after obtaining the OC. The court analyzed the provisions of Section 18 of RERA, concluding that the right to a refund is absolute and unqualified, emphasizing that the promoter must comply with refund demands without delay. The court criticized the Appellate Tribunal's confusing orders and clarified the obligations under RERA, ultimately upholding the right of the allottees to receive their refunds immediately. The court directed the promoter to refund the amounts paid along with interest from January 1, 2018, as prescribed by the rules.
Headnote
A) Real Estate Law - Refund Obligations - Unqualified Right to Refund - Real Estate (Regulation and Development) Act, 2016, Section 18 - The court held that the right of the allottee to seek a refund under Section 18(1) of RERA is absolute and unqualified, and cannot be delayed by the promoter or regulatory authorities based on mitigating circumstances. The obligation to refund arises immediately upon demand by the allottee if the promoter fails to deliver possession as agreed (Paras 28-30).
Issue of Consideration
Whether the obligation for the Promoter to return the amount received with interest on demand is absolute or if discretion exists for mitigating circumstances.
Final Decision
The court upheld the appeal, clarifying that the obligation to refund is absolute and must be fulfilled immediately upon demand by the allottees, without discretion for mitigating circumstances. The court directed the promoter to refund the entire amount paid along with interest from January 1, 2018, as per the rules.
Law Points
- Real Estate (Regulation and Development) Act
- 2016
- refund obligations
- interest calculation
- mitigating circumstances
- unqualified right to refund
