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LANDMARK JUDGMENTS ON BUILDER DELAY & OVER-PRICING

Pioneer Urban Land & Infrastructure Ltd. v. Govindan Raghavan (2019) 5 SCC 725

Facts:

Builder delayed possession for years and imposed arbitrary extra charges.

Principle:

A builder cannot take advantage of its own wrong. Delay + unfair charges = deficiency in service.

Significance:

Consumer can demand refund + interest, even if buyer agreement is one-sided.


2️. Fortune Infrastructure v. Trevor D’Lima (2018) 5 SCC 442

Facts:

Flat delayed for more than 7 years.

Principle:

If the project is delayed indefinitely, the buyer can seek full refund, not forced to wait.

Significance:

Court held that “waiting endlessly is unfair”. Buyer has the right to exit the project.


3️. Kolkata West International City Pvt Ltd v. Devasis Rudra (2019) 4 SCC 303

Facts:

Builder delayed possession for 6+ years.

Principle:

A delay beyond “reasonable time” entitles the buyer to full refund with interest.

Significance:

Even if agreement has no clear possession date, unreasonable delay is enough for refund.


4️. Experion Developers Pvt Ltd v. Sushma Ashok Shiroor (2022) 1 SCC 319

Facts:

Builder charged excess/additional amounts beyond agreement.

Principle:

Builder cannot impose any extra charge unless authorized in the buyer agreement.

Significance:

Overpricing and extra charges = unfair trade practice.


5️. Wing Commander Arifur Rahman Khan v. DLF Southern Homes (2020) 16 SCC 512

Facts:

Multiple buyers challenged delay and poor construction quality.

Principle:

Buyers are consumers. Builder must pay compensation + interest for delay.

Significance:

Class-action style case — strong precedent for group complaints.


6️. IREO Grace Realtech Pvt. Ltd. v. Abhishek Khanna (2021) 3 SCC 241

Facts:

Builder offered possession but occupation certificate was not obtained.

Principle:

Offering “symbolic possession” without OC is illegal.

Significance:

Buyer can demand refund + interest.


7️. NBCC (India) Ltd. v. Shri Ram Trivedi (2021) 5 SCC 273

Facts:

Builder delayed and demanded more money for escalation in cost.

Principle:

No increase in price unless specifically provided in the agreement.

Significance:

Strongest judgment against price escalation.


8️. Parsvnath Developers Ltd. v. Union of India (2019 NCDRC)

Facts:

Delay + forced extra charges.

Principle:

Builder must pay delay compensation at market rates.

Significance:

NCDRC imposed heavy penalties on the builder.


9️. DLF Homes Panchkula Pvt Ltd v. D.S. Dhanda (2019) 11 SCC 379

Facts:

Extra and unfair charges imposed.

Principle:

Consumer courts can strike down arbitrary costs.

Significance:

Overpricing = unfair trade practice.


10. Emaar MGF Land Ltd. v. Amit Puri (2015) 4 CPJ 036

Facts:

Delay beyond agreed date.

Principle:

Reasonable compensation must be paid for every month of delay.

Significance:

Used widely for compensation calculation.

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