NEW DELHI, JUN 27: The Supreme Court has ruled that homebuyers retain the right to seek compensation for delayed possession of their flats even after taking possession, setting aside a 2016 order of the National Consumer Disputes Redressal Commission (NCDRC).
A bench of Justices Vikram Nath and V. Mohan held that accepting possession does not extinguish a buyer’s right to claim compensation for delays in handing over the property. The court observed that such claims arise from the period before possession is delivered and must be adjudicated on their merits.
The ruling came while allowing an appeal by a Delhi homebuyer whose complaint alleging delayed possession had been dismissed by the NCDRC on the ground that he was no longer a consumer after taking possession.
The apex court also held that the existence of an arbitration clause in the agreement does not bar a consumer from approaching consumer forums under the Consumer Protection Act.
Setting aside the orders of the NCDRC, the State Commission and the District Forum, the Supreme Court restored the consumer complaint and directed the District Consumer Disputes Redressal Commission, Dwarka, to decide the matter on merits within one year, considering that the case has been pending since 2005.
