Tag: Real estate dispute

Supreme Court Decides Long-Running Property Dispute on Mortgage Redemption
2Feb By The Legal ChamberNo Comments
Supreme Court

Supreme Court Decides Long-Running Property Dispute on Mortgage Redemption

This Supreme Court judgement clarifies the limitation period for redeeming a usufructuary mortgage. The Supreme Court held that the right to redeem does not arise from the mortgage's creation date. Instead, the limitation period commences only when the mortgagor tenders the mortgage money, meaning the mortgagor's redemption right is not extinguished by mere lapse of time. Facts Of The Case: This case originated from a dispute over the redemption of a usufructuary mortgage concerning agricultural land in Punjab. The respondents' ancestors had mortgaged the property to the appellants' predecessors. In 1975, the Collector allowed the respondents' application for redemption under the Redemption of Mortgage Act, 1913. Challenging this, the appellants (original plaintiffs) filed a civil suit, ...
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From Legal Dead End to Fresh Hope: Supreme Court’s Blueprint for Stalled Housing Projects
28Jan By The Legal ChamberNo Comments
Supreme Court

From Legal Dead End to Fresh Hope: Supreme Court’s Blueprint for Stalled Housing Projects

The Supreme Court constituted a one-judge committee under a retired High Court Judge to investigate and resolve the complex issues surrounding the stalled housing project. The committee will verify genuine allottees, devise a mechanism for partial lease restoration with GNIDA, determine proportional dues, and formulate a comprehensive plan for the project's completion. Facts Of The Case: In 2005, Golf Course Sahkari Awas Samiti (GCSAS) was allotted land in Greater Noida for a group housing project. The Samiti engaged a private developer, M/s Shiv Kala Developers, to build a luxury complex named "Shiv Kala Charms." Prospective homebuyers, including the petitioners, booked flats and availed bank loans, which were disbursed directly to the Samiti. However, the Samiti and develop...
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Supreme Court Denies Specific Performance for Deal Breaching Construction Laws
27Dec By The Legal ChamberNo Comments
Supreme Court

Supreme Court Denies Specific Performance for Deal Breaching Construction Laws

The Supreme Court held that an agreement mandating construction violating building laws is void and unenforceable. The illegality rendered specific performance impossible under Section 12 of the Specific Relief Act, as the unlawful object was essential to the contract. The Court affirmed that contracts contravening statutory provisions cannot be severed to remove their core illegal purpose. Facts Of The Case: The appellant, Canara Bank, entered into an agreement with the respondent, K.L. Rajgarhia, on 27.12.1984 for the purchase of residential flats to be constructed on a plot in East of Kailash, Delhi. The total consideration was ₹32,07,500, of which approximately 90% (₹28,86,750) was paid upfront. The agreement stipulated the construction and delivery of eight flats and a basement with...
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When a Contract Becomes Void: Supreme Court Explains the Limits of Specific Performance
25Dec By The Legal ChamberNo Comments
Supreme Court

When a Contract Becomes Void: Supreme Court Explains the Limits of Specific Performance

The Supreme Court held that an agreement to sell flats, which was contingent upon construction violating building bye-laws and the master plan, was unlawful and void under Section 23 of the Indian Contract Act. The Court ruled that specific performance cannot be granted for an illegal contract, and courts cannot rewrite or sever its essential, unlawful terms to make it enforceable. Facts Of The Case: In December 1984, Canara Bank entered into an agreement with K.L. Rajgarhia to purchase residential flats to be constructed on his plot in East of Kailash, Delhi, for ₹32,07,500. The bank paid approximately 90% of the consideration upfront. The agreement specified the construction and sale of eight flats and a basement, with completion required within 18 months. When the defendant failed to ...
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Supreme Court Upholds Buyer’s Right: Builder Must Pay 18% Interest for Delay, Same Rate It Charged
15Nov By The Legal ChamberNo Comments
Supreme Court

Supreme Court Upholds Buyer’s Right: Builder Must Pay 18% Interest for Delay, Same Rate It Charged

The Supreme Court held that while there is no absolute rule for parity in interest rates between builders and buyers, the principle of equity and fairness may warrant it in cases of one-sided agreements and egregious conduct. The Court modified the awarded interest from 9% to 18% p.a., aligning the builder's liability for delay with the rate it charged the buyer, to serve the ends of justice. Facts Of The Case: The appellant booked a plot in the respondent's project in 2006, paying a significant advance. A Plot Buyer Agreement was executed in 2007, stipulating possession within 24 months of sanction of service plans and allowing the respondent to charge 18% p.a. interest on delayed payments by the appellant. By 2011, the appellant had paid over ₹28 lakhs. That year, the respondent invoke...
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