Inner Urban Infrastructure Private Limited Vs Karnataka Real Estate Regulatory Authority (Karnataka High Court)
Summary: Respondent Nos. 2 and 3-allottees filed a complaint before the Karnataka Real Estate Regulatory Authority claiming interest for the delayed period in respect of Villa No.36 in the “Urban Serenity” project developed by the appellant, M/s. Inner Urban Infrastructure Private Limited. The parties had entered into an agreement for sale dated 23.11.2019 for a total sale consideration of Rs.79,50,000/-. Possession was promised on or before 15.01.2020, with a six-month grace period extending the date to July 2020. The promoter executed the sale deed on 11.03.2020, but possession was stated to have been given on 11.07.2020. The project, however, did not have an occupancy certificate at that stage and was stated to be incomplete, with several amenities pending.
During the pendency of the complaint, the promoter produced an alleged Occupancy Certificate said to have been obtained from the competent authority on 07.07.2021. The allottees nevertheless pursued their complaint. In its statement of objections, the promoter contended that the alleged delay was attributable to the allottees’ failure to adhere to the payment schedules under the agreement for sale. It further contended that delay in obtaining the Occupancy Certificate and other necessary approvals was caused by the inefficiencies of Government bodies and the COVID-19 pandemic, which it characterised as a force majeure event causing labour shortages, supply-chain interruptions and delays in statutory approvals beyond its control.
