In an interesting order passed by the Maharashtra Real Estate Appellate Tribunal of Mumbai, an appeal of a Navi Mumbai based developer has been dismissed who was seeking interest on delayed payment from the homebuyer.
The Appellate Tribunal stated that the said developer who was liable to execute the Agreement for Sale cannot claim interest on delayed payments from the flat Purchaser in absence of demand letters, a number of instalments, date of such instalments demands among others. Moreover, it directed the said developer to execute the Agreement for sale as per Section 4 of MOFA/Section 13 of RERA. Since the flat purchaser already paid 30 per cent of the considerable amount of the booked house.
The case is about a flat purchaser named Prashant More who had purchased a flat in a project of M/s. Ronak Builders and Developers in Navi Mumbai. The said homebuyer booked a flat in March 2010 for total consideration of Rs 46.46 lakh and was orally promised possession of the flat by 2013. The project was to be constructed by Scarlett Builders and Developers, however, in May 2011, the builder assigned the project to the appellant. In May 2011, an allotment letter was issued to the homebuyer. Following which the allottee made substantial payment. However, the agreement for sale was not executed, the order copy explains.
In April 2019, the homebuyer filed a complaint before MahaRERA praying for a direction to the developer to execute an agreement for sale, handover possession and pay compensation for alleged delay in delivering possession. Wherein the MahaRERA passed the impugned order in October 2020 that the prayers pertaining to penalising the respondent(developer) for breach of sections 13 and 18 (1) are not maintainable.
Furthermore, the respondent, submitted that the complainant is liable to pay interest on delayed payment of consideration fee is also not maintainable because there is no document on record showing raising of demand on the complainant. Hence, the parties were advised to reconcile the amount of balance consideration and execute the agreement for sale within 30 days of the balance consideration amount being paid by the complainant. Aggrieved by this order, the promoter filed a current appeal claiming that the allottee is liable to pay interest on delayed payment under section 19 (7) of the Act to the appellant and also for floor rise charges. However, the appeal was dismissed by the tribunal.
