Western India Regional Council of
The Institute of Chartered Accountants of India

(Setup by an Act of Parliament)

August 23, 2019

CA. Ashwin Shah, CA. Vyomesh Pathak

Judicial Pronouncement by RERA Appellate Tribunal:

1. Sanvo Resorts Pvt Ltd. vs. Ranveer Sharma & others

Issue Before Tribunal:

Appellant Developer raised the issue whether for claim of interest by allottee , the matter has to go to adjudication officer only and Member of Authority has no jurisdiction to decide the claim of interest.

Held

a. Interest for delayed possession is provided u/s. 18 f the Act and Rules provides for rate of interest being 2% above SBI Marginal Cost of Lending Rate.
b. Once Member decides that there is case for delay in possession, interest working are automatic as provided under the Act and Rules.
c. There was no claim of compensation by the allottee in the original complaint and hence there is no need to refer the matter to adjudication officer for deciding compensation u/s. 7 & 72 of the Act.

2. Prashant Kale Vs Swapnil Promoters & Developers Pvt Ltd

Issue Before Tribunal:

The Appeal filed by Allottee for claim of interest and compensation with principal for delay in possession.

Held

a. Allottee in the original complaint sought refund of principal with interest and compensation on account of delay in possession.
b. However, the question of compensation under the Act was neither rejected nor answered by the Authority.
c. It was held that allottee may file separate petition for claim of compensation u/s. 71 & 72 of the Act before Adjudication Officer on the same cause of action i.e delay in possession.

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