13 May 2025 Civil Appeals >> Civil & Consumer Law   |   Property Law >> Personal Law  

In a complex and protracted dispute spanning over a decade, the Supreme Court of India has finally ruled on the outstanding amount payable by a flat buyer to a real estate developer. The case, involving Jawala Real Estate Pvt. Ltd. (now amalgamated with Macrotech Developers Ltd.) and Haresh (the respondent), centered around the allotment and subsequent cancellation of a three-bedroom apartment in Mumbai.

The original allotment for flat no. 6403 in "Lodha Codename Blue Moon" was made to Haresh in 2013, who paid an advance of over Rs. 92.5 lakh. However, the developer cancelled the allotment, leading Haresh to file a complaint with the National Consumer Disputes Redressal Commission (NCDRC).

During the NCDRC proceedings, despite an interim order restraining the developer from creating third-party rights on the apartment, the developer alienated the flat. The NCDRC eventually set aside the cancellation and directed the developer to execute the sale agreement. Due to the original flat being sold, the developer offered an alternate flat (no. 6503) on the next higher floor. This offer was initially rejected by the NCDRC but was later accepted by the Supreme Court.

The core of the recent proceedings revolved around the final outstanding payment from Haresh, with the developer claiming over Rs. 4.96 crore, including substantial interest and various charges. Haresh, however, disputed most of these claims, citing the developer's failure to provide essential documents and their violation of court orders.

Taking into account the developer's non-compliance with providing crucial documents like building maps, carpet areas, and NOCs, and their clear violation of the NCDRC's stay order, the Supreme Court opted not to delve into every specific claim. Instead, to achieve "complete justice," the Court directed Haresh to pay a total of Rs. 1,40,71,000/- (Rupees One crore forty lakhs seventy-one thousand only) to the developer within eight weeks.

This amount covers the admitted liabilities, charges Haresh was willing to pay if directed by the court, taxes on the consideration value, and an additional Rs. 1 crore to settle all outstanding dues, including interest and other charges, up to February 5, 2025 (the date of possession handover). The order clarifies that any charges accruing after this date for the apartment's use and occupation will be borne by Haresh. The parties are also directed to execute the sale agreement/sale deed within two months of this payment, with stamp duty and registration expenses to be paid by Haresh.