Supreme Court: Second-hand flat buyers have the same rights as original allottees

Case- M/S Laureate Buildwell Pvt.Ltd v. Charanjeet Singh

Mr.Charanjeet Singh, was a purchaser, who bought an apartment from the original allottee. Due to delay in delivery of possession of the apartment, Mr. Charanjeet Singh sought a refund from the builders (Laureate Buildwill) in the consideration of the amount he had paid for the apartment.

Mr. Charanjeet, approached the National Consumer Dispute Redressal Commission( NCDRC) for relief. The NCDRC ordered the company to pay refunds for the delay.

The present case is an appeal before the Supreme Court filed by the builders, challenging the order of the NCDRC.

The builders contended that they are not liable to pay refund to the purchaser as they are it the original allottees and they purchased the flat though they were aware of that the project was being delayed.

A Bench of the Supreme Court consisting of A
Justice U U Lalit, Justice Hemant Gupta and Justice S Ravindra Bhat heard the appeal.

The Bench held that the rights of purchasers are the same as that of original allottees. This right cannot be denied by the builder.

It was further stated that it is obligation to ensure the delivery of possession in a reasonable time and if this does not occur, the purchaser who is not the original allottee also has the right to claim refund.

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