Cci Projects Private Limited Mumbai- 400066 vs. Sriram Krishnan
Held
The Court held that Section 18 of the RERA Act grants an unqualified statutory right to claim interest for delayed possession, which is not affected by the acceptance of delayed performance. This right remains unimpeded by any condition and is not subject to giving notice of intention to claim compensation, as stipulated in Section 55 of the Contract Act. The Court found that RERA, being a special enactment with an overriding effect under Section 89, prevails over the general law (Contract Act) in case of inconsistency. Therefore, the promoters are obligated to pay interest for delayed possession from the date specified in the agreement. Regarding the maintainability of the appeal, the Court held that the allottees' submission before MahaRERA was a plea for parity and did not amount to an express waiver or relinquishment of their statutory right to interest under Section 18 of RERA. The Court also noted that the issue of force majeure events was settled by a previous decision of the Court. Consequently, the substantial questions of law were answered in favor of the allottees.
Facts
CCI Projects Private Limited (Appellant/Promoter) filed a Second Appeal challenging a Maharashtra Real Estate Appellate Tribunal (Appellate Tribunal) order that quashed a MahaRERA order and directed the promoters to pay interest for delayed possession. The allottees (Respondents) had booked an apartment, with possession agreed for on or before June 30, 2017. The total consideration was Rs. 1,95,06,060, with Rs. 1,85,32,899 paid, plus Rs. 10,09,220 for stamp duty and registration, and other taxes, totaling Rs. 2,05,89,715. The project's revised completion date was December 31, 2019. The allottees sought possession and interest for the delay. MahaRERA directed possession by December 31, 2019, with liberty to claim interest later. The Appellate Tribunal, however, ordered the promoters to pay interest at SBI's highest MCLR plus 2% from July 1, 2017, until possession.
Key Issues
The Court had to decide four substantial questions of law: (i) Whether accepting delayed performance disentitles the promisee from claiming compensation for non-performance at the agreed time, in view of Section 55 of the Indian Contract Act, 1872? (ii) Whether Section 18 of the Real Estate (Regulation and Development) Act, 2016, overrides Section 55 of the Indian Contract Act, 1872? (iii) Whether force majeure events listed in the contract could be ignored, considering Section 32 of the Indian Contract Act, 1872? (iv) Whether the appeals were maintainable at the instance of the respondents, given their concession that the issue of interest would be considered subsequent to project completion? The Appellant argued that Section 55 of the Contract Act allows for acceptance of delayed performance and that parties can alter contracts by conduct (Section 62). They contended that communications about revised dates and payment schedules constituted acceptance. The Respondents argued that Section 18 of RERA grants an unqualified right to interest for delayed possession, which overrides the Contract Act. They also argued that their submission before MahaRERA was for parity and did not constitute an express waiver of their right to interest.
Sections Cited
Section 55, Section 32, Section 62, Section 18, Section 31, Section 89
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SA-472-2021 (final).doc IN THE HIGH COURT OF JUDICATURE AT BOMBAY CIVIL APPELLATE JURISDICTION SECOND APPEAL NO. 472 OF 2021 CCI Projects Private Limited Office at Rivali Park, CCI Compound, Western Express Highway, Borivali East, Mumbai 400 066. ] ] ] ] ...Appellant Versus
Mr. Sriram Krishnan having address at Krishna, E-404, Vasant Sagar Complex Thakur Village, Kandivali (East), Mumbai – 400101. ] ] ] ] ] ]
Mrs. Vidya Sriram having address at Krishna, E-404, Vasant Sagar Complex, Thakur Village, Kandivali (East), Mumbai – 400101. ] ] ] ] ] ]
Mr. Abhijit Kumar Phanikumar having office at Rivali Park, CCI Compound, Western Express Highway, Borivali (East), Mumbai 400 066. ] ] ] ] ]
Ms. Nandini Hiten Khatau having Office at Rivali Park, CCI Compound, Western Express Highway, Borivali (East), Mumbai – 400 066. ] ] ] ] ]
Ms. Maithili Hiten Khatau having Office at Rivali Park, CCI Compound, Western Express Highway, Borivali (East), Mumbai 400 066. ] ] ] ] ]
Mr. Pradip Haridas Udeshi having Office at Rivali Park, ] ] ] Sairaj 1 of 40
2026:BHC-AS:9415
SA-472-2021 (final).doc CCI Compound, Western Express Highway, Borivali (East), Mumbai 400 066
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