Wg. Cdr. Arifur Rahman Khan And Aleya ... vs Dlf Southern Homes Pvt. Ltd. (Now Known ... on 24 August, 2020
6. The issue related to grant of compensation for the period the possession is delayed by a builder/developer, recently came up for the consideration of the Hon'ble Supreme Court in Wg. Cdr. Arifur Rahman Khan and Aleya Sultana and Ors. vs. DLF Southern Homes Pvt Ltd (now Known as BEGUR OMR Homes Pvt. Ltd.) and Ors. in Civil Appeal No. 6239 of 2019 decided on 24.08.2020. There was a delay on the part of the developer in offering possession. Besides the delay in offering possession, it had also failed to provide several amenities which it had promised while selling the flats to the buyers. The Hon'ble Supreme Court held that not providing those amenities including a shopping center and health-care facilities constituted deficiency in service and the flat buyers were entitled to compensation on account of the failure of the developer to provide those amenities. It was noted that in such a situation it may be difficult for the court to quantify the exact nature of the compensation that should be provided to the flat buyer but generally appreciation in land value results in an increase in the value of the investment made by the buyers. It was further held that difficulties in determining the measure of compensation cannot dilute the liability to pay and a developer who has breached a clear representation made to the buyer should be held accountable to the process of law. The Hon'ble Supreme Court held that in factoring in the compensation which should be provided to the flat buyers, this has to be borne in mind. Thus, the Hon'ble Supreme Court granted compensation not only on account of the delay in offering possession of the flats but also on account of the failure of the developer to provide several amenities which it had promised to the flat buyers. The Hon'ble Supreme Court, awarded the compensation in the form of simple interest @ 6% p.a from the expiry of 36 months from the execution of the agreement until the date of offer of possession besides permitting the allottees to retain the compensation which had been paid or credited by the developer at the rate specified in the agreements between the parties. However, in the present case, the complainants shall be entitled to compensation only for the delay in offer of possession since this is not a case also of not providing the agreed amenities. Therefore, it would be fair and reasonable to award compensation in the form of simple interest @ 6% p.a. w.e.f. the committed date for delivery of possession till the date on which the possession actually offered in terms of this order.