ADARSH DEVELOPERS Vs. SUMAN RUPANAGUDI

JUDGEMENT

(1.) This appeal under Section 58 of the Real Estate (Regulation and Development) Act, 2016 (hereinafter referred to as 'the Act' for short) has been filed against the order dated 29.01.2021 passed by the Karnataka Real Estate Appellate Tribunal.

(2.) Facts leading to filing of this appeal briefly stated are that the appellant is a builder. The respondent No.1 has entered into an agreement for sale for purchase of a residential apartment on 03.09.2014. Under the terms and conditions of the agreement, it was agreed that the project shall be completed within 36 months and a grace period of 3 months was further provided. The appellant by communication dated 27.04.2017 informed the Respondent that the completion in the time schedule of the project had undergone a revision. Thereafter, a supplementary agreement dated 27.04.2017 was executed between the parties under which the appellant agreed to handover the possession of the apartment by the end of December 2018. The Respondent and her husband visited the construction premises sometime in May 2018 in order to ascertain the progress of construction, where the Respondent found out that the project might require 3-4 years for completion. She, therefore, by a communication dated 24.05.2018, sought cancellation of her allotment. Accordingly, a cancellation deed was executed on 24.05.2019 and a sum of Rs.1,47,83,062/- was paid to the respondent No.1 vide Cheques dated 30.05.2019 and 30.06.2019. The respondent No.1 received the aforesaid amount under protest. The respondent No.1, thereafter filed a complaint on 07.11.2019 which was dismissed by the Real Estate Appellate Tribunal by order dated 31.01.2020. The respondent No.1 filed an appeal against the aforesaid order. The Appellate Tribunal, by judgment dated 29.01.2021, inter alia, held that the respondent No.1 is entitled to compensation and interest under Section 18(1) of the Act. The Tribunal placed reliance on the decision of the Supreme Court in PIONEER URBAN LAND AND INFRASTRUCTURE LTD. Vs. GOVINDAN RAGHAVAN , 2019 5 SCC 725 . The Tribunal remitted the matter to the Real Estate Appellate Authority for computation of interest and compensation. In the aforesaid factual background, this appeal has been filed.

(3.) Learned counsel for the appellant submitted that the Tribunal ought to have appreciated that after execution of the cancellation deed dated 24.05.2019 and after having received the amount, the respondent No.1 was not entitled to interest and compensation. It is further submitted that no contractual obligation exists between the parties inter se. It is also submitted that there is no evidence on record to suggest fraud and coercion and deed of cancellation was executed voluntarily by respondent No.1 which was acted upon.