MADHYA PRADESH HIGH COURT ISSUES JUDGEMENT ON JABALPUR DEVELOPMENT AUTHORITY V/S R.S. GANDHI

JABALPUR, India, Dec. 14 -- Madhya Pradesh High Court issued the following judgmenton Nov. 13:

1. The instant Second Appeal is preferred by the Jabalpur Development Authority under Section 58 of the Real Estate (Regulation and Development) Act, 2016 being aggrieved by the order passed by M.P. Real Estate Appellate Tribunal, Bhopal in Appeal No.A-36/2019 and A-52/2019 on 22.01.2020, whereby the appeal preferred by the respondent was partly allowed and the appeal preferred by the appellant was dismissed.

2. Heard Shri Himanshu Mishra, Advocate on behalf of appellant on the question of admission.

3. The shorts facts of the case are that the respondent booked a plot in the proposed project developed and promoted by the appellant/Jabalpur Development Authority under the Scheme No.5/14, Vijay Nagar, Jabalpur known as "Pandit Vishal Pachori Commercial Complex" for total consideration of Rs.54,44,852/- in the year 2015 and allotment letter was issued to the respondent on 20.02.2015. Thereafter, the respondent paid the entire consideration amount to the appellant however, the appellant failed to deliver the possession of the plot to the respondent due to some dispute with adjacent land owner and upon failure of the appellant to deliver the possession of the plot, the respondent demanded the refund of amount along with interest @ 18% per annum and compensation of Rs.10,00,000/-.

4. When the appellant did not refund the amount along with interest, the respondent preferred Case No.N-JBP-17-0615 before the M.P. Real Estate Authority, which was decided by Adjudicating Officer on 03.01.2019 and the appellant was directed to execute the lease deed in favour of the respondent and pay the compensation @ Rs.28 Per Sq. Mtr. per month from 29.05.2015 till the delivery of the possession along with compensation of Rs.10,000/-.

5. Appellant as well as respondent challenged the said order in Appeal before the M.P. Real Estate Appellate Tribunal, Bhopal, which were decided by common order dated 22.01.2020, whereby the Appeal preferred by the appellant was dismissed and the appeal preferred by the respondent was partly allowed and appellant was directed to refund the amount of Rs.54,44,852/- along with interest @ 8.5% per annum till the date of realization to the respondent. In addition to aforesaid, Rs.10,000/- has been awarded towards litigation cost by the Appellate Tribunal.

6. Learned counsel for appellant submits that the order passed by the Appellate Tribunal has been complied with to the extent of refund of principal amount of Rs.54,44,852/- and the present Second Appeal is restricted to assail the order of award of interest only. During the pendency of Second Appeal, the original respondent died and the legal representatives are brought on record.

7. Learned counsel for appellant submits that the Appellate Tribunal has not considered that Appellant Authority is a public undertaking and is a non-profit earning authority and due to the injunction issued by the competent Court, the appellant could not deliver the possession of the booked plot for which, the appellant can't be held responsible and no amount could be awarded towards interest to the respondent. He further submits that the learned Appellate Tribunal has committed error in holding that the respondent has paid the amount after obtaining the loan from the Bank whereas, no housing loan was obtained by the respondent. He further submits that the Tribunal has erroneously awarded the interest @ 8.5% per annum and the same is at higher side.

*Rest of the document can be viewed at: (https://mphc.gov.in/upload/jabalpur/MPHCJB/2020/SA/1402/SA_1402_2020_FinalOrder_13-11-2025_digi.pdf)

Disclaimer: Curated by HT Syndication.