Revised Date of Possession – RERA Right to Interest is Absolute

On 1.10.2011, the allotment letter was issued with the possession date of 30.6.2015 and grace period of six months.

Bombay HC – Right of Home Buyer to claim interest for delayed possession under Section 18 of the RERA Act is statutory, unconditional, absolute and cannot be taken away, curtailed, diluted, waived or defeated on account of acceptance of delayed possession or contract clauses.

Section 18 of RERA Act gives unconditional right to interest for delayed possession.   Such a right cannot be diluted by the contractual terms, or conduct of the parties or waiver on acceptance of delayed possession.

Section 18 of the RERA Act is absolute and cannot be taken away only because the home buyer did not object to the revised timelines or revised date of possession

As per RERA registration, the proposed completion date was 31.12.201 and revised proposed completion date was 31.12.2019.

Till the filing of complaint on 23.5.2018 for possession and the interest, the possession was not given.

a circular of RERA dated 18th May, 2020, period of six months has been considered as force majeure period which is to be treated as moratorium for the purpose of calculating the interest under Section 18 of RERA Act

If the right under Section 18 of RERA Act is an unqualified absolute right, the acceptance of revised timelines and delayed performance cannot lay fetters on the right to claim interest.

Under the provisions of Section 18 of RERA Act, the handing over possession as per terms of agreement or as per the date specified is sacrosanct remaining unqualified by any contingencies outside the terms of the agreement and is not affected by the acceptance of delayed performance. The allottee would be well within their statutory right to claim interest for every month of delayed possession for the period specified in the flat purchaser’s agreement till the date of handing over possession.

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