Bombay HC – OC Issued But No Water – Home Buyer Still Gets Interest for Delayed Possession under RERA
As per the agreement dated 29.12.2014, the appellant had agreed to give possession by December, 2016 with grace of six to nine months. However, the possession was not given.
By the order dated 28.9.2020, the Authority directed the appellant to pay interest at 9% from 1.7.2017 till possession of the flat. The appellant filed appeal and deposited Rs.52,10,000/-.
On 10.4.2023, the appellant obtained OC and offered possession to the respondents in May, 2023. However, the possession was given on 26.1.2024.
In that context, it was contended that interest can be granted for two months from the date of OC and if allottee declines to accept possession he would not be entitled to interest for delay in delivery of possession.
Therefore, the question as to whether the Appellate Tribunal could have gone behind the OC and the Allottee could decide when to take possession.
HELD that OC was subject to the condition that a certificate under Section 270(a) of MMC Act, 1888, shall be obtained before giving possession of the flat to the buyers. Section 270(A) provides that a certificate is obtained from the Commissioner that there is adequate supply of water to the persons intending ot occupy such premises. Thus, OC was subject to the pre-condition of certificate on water supply.
Judgment dated 8.10.2025 of the High Court of Bombay in Second Appeal No.537 of 2025 of Keyana Estate LLP Vs. Paresh Parihar and another.
