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RERA Act overrides Contract Act

RERA Act overrides Contract Act

RERA is special Act and prevails over Section 55 of the Contract Act in the matter of delay and waiver.  The contractual defences cannot dilute the statutory absolute right of home buyer to interest for delayed possession under RERA Act.

  1. b) Whereas Section 18 of RERA Act gives an unqualified absolute statutory right to claim interest unimpeded by any condition, Section 55 of Contract Act lays fetters on that right making it subject to giving notice of intention to claim compensation. The inconsistency between the two provisions is on the aspect of claim of compensation. RERA Act being a special enactment will prevail over Contract Act, a general law. Section 89 of RERA Act gives it an overriding effect over anything inconsistent with the other laws and the retroactive application of RERA Act would impose an obligation on the promoter to pay interest for the delayed possession computed from the date of handing over possession as specified in the agreement even in the absence of any notice to the promoter by the allottee of its intention to do so.

Judgment dated 18.6.2026 of the High Court of Bombay in Second Appeal No.479 of 2021 of CCI Projects Private Limited  Vs.   Rajesh Kumar Chaudhary and others

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