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Supreme Court Judgement On Builder Buyer Agreement

“A buyer has every right to enforce the delivery date set out in the owner-buyer contract. Section 18(a) of RERA (which provides for the obligation of reimbursement to the contracting authority in the event of late delivery) uses the words “in accordance with the terms of the contract of sale or, if possible, duly concluded on the date indicated”, which also means that the date of delivery must be considered as the date fixed in the contracting authority`s contract. “said Vaibhav Suri, Partner, L&L Partners. This appeal challenged the National Consumer Dispute Redressal Commission `National Commission`s) injunction that the National Commission ordered the plaintiff to reimburse the amount deposited by the defendant buyer for indemnification interest. The National Commission found that the terms of the agreement were completely unilateral, unfair and non-binding on the respondent – the buyer of housing – having regard to the facts and circumstances of the case, and therefore instructed the developer to reimburse the amount with interest on compensation. This requirement was in line with the agreement and no part of the penalty was charged to home buyers, the developers argued. While homebuyers could not recover the taxes they paid, the Supreme Court awarded them increased compensation. Home buyers who buy apartments or apartments from developers have little choice but to accept the standard contract designed by developers for sale. It is quite possible that different clauses concerning the interest rate, the right of withdrawal, the repayment period due to termination, etc., are not fair, that is.

Developers may have higher rights than buyers. In fact, many such cases have already been revealed…