M/S. PTC Builders, Represented By Managing Partner Biju Jacob vs Mariamma Stephan

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The appellant-builder entered into an agreement dated 23.11.2013 with the respondent-complainant for sale of a residential apartment in the project 'PTC Western Ghats' for a consideration of Rs.49,00,000/-, with completion stipulated by July 2015 with a six-month grace period. The complainant paid Rs.27,44,000/- but withheld further payments alleging the builder's failure to adhere to the construction schedule. The builder cancelled the allotment by notice dated 04.06.2018 and refused to refund the amount with interest until resale to a new purchaser.

The Kerala Real Estate Regulatory Authority (RERA) allowed the complaint and directed refund of Rs.27,44,000/- with simple interest at 16.15% per annum from the date of each payment till realisation. The Kerala Real Estate Appellate Tribunal dismissed the builder's appeal and confirmed the RERA order. The builder filed this Miscellaneous Second Appeal before the Kerala High Court challenging the Tribunal's order on grounds of the complainant's default in payment schedule and absence of formal cancellation by the complainant as required under Section 18 of the RERA Act.

The High Court noted that admittedly the builder failed to complete the construction within the stipulated time under the agreement. The judgment text as reproduced is incomplete, but the Court proceeded to examine whether the complainant was entitled to refund with interest under the Real Estate (Regulation and Development) Act, 2016, in the context of the builder's admitted delay and unilateral cancellation of the allotment.

Catchwords: Real estate · RERA · refund of amount · delay in construction · cancellation of allotment · agreement for sale of apartment · interest on refund · allottee's default · builder's obligation · Miscellaneous Second Appeal