Summary Judgment for Interest on Delay in Possession of the Flats
Judgment dated 23.10.2026 of the High Court of Bombay in Interim Application (L) No.2956 of 2026 in Commercial Suit No.39 of 2015 of DNM trustee Services Private Limited Vs. Victoria Enterprises Limited and others
This is an Application filed by the Plaintiff under Order XIII A of the Code of Civil Procedure, 1908 (Code) seeking summary judgment in terms of prayer clause (b)(ii) of the Plaint (for completing the construction of all common amenities/facilities in the building) and prayer clause (d-2) of the Plaint for (grant of interest @ 12% p.a. on consideration of Rs.5,51,00,000/- from the date of promised possession of the units i.e. 31 March 2008 till the date of actual handing over of possession of 15 February 2020).
By a registered Agreement for Sale dated 2 February 2008, Defendant No.1 agreed to sell Unit Nos.503 and 504 in the building ‘Pittie Chamber’ near Bandra-Kurla Complex, Mumbai to Defendant Nos.3 and 4. The entire agreed consideration of Rs.5,51,00,000/- has been paid. Plaintiff is the trustee of Lalwani Family Trust, settled by registered instrument for the benefit of Lalwani Family, including Defendant Nos.3 and 4. Since possession of flat was not handed over in term of the Agreement for Sale, Plaintiff has filed the present suit seeking inter-alia specific performance of the Agreement for Sale and compensation for delay. After filing of the suit, possession of Units has been handed over to the Plaintiff on 15 February 2020.
there is delay of 11 years, 10 months and 15 days in handing over possession of the Units to the Plaintiff. Defendant No.1 does not really deny the factum of delay in handing over possession as there are averments in the Written Statement and additional Written Statement about admission on the aspect of delay in completion of construction of the building.
the spirit of provisions of Section 18 of RERA can be made applicable to the present case only for the purpose of fastening the liability to pay interest on Defendant No.1-Promoter for delaying handing over of possession of the units. The liability to pay interest on delayed possession is a concept different and distinct from the concept of making a promoter liable to compensate the allottee for delaying possession.
on for fastening liability on Defendant No. 1 to pay interest. In my view, the rate of interest prescribed under the Maharashtra RERA Rules, 2017, which ranged from 10.10% to 10.75% during the period from May 2017 to February 2020, cannot be applied to the present case. In the circumstances, I consider it appropriate to award contractually agreed simple interest of 9% per annum.
41) In view of the above discussion, the present application can be made absolute by granting summary judgment in favour of the Plaintiff only in terms of prayer clause (d-2) of the plaint subject to a caveat that the rate of interest on the amount of Rs.5,51,00,000/- shall be @ 9% p.a. for the period during 31 March 2008 to 15 February 2020.
