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In the Absence of Builder Buyer agreement, the Allotment letter will serve as valid Contract

In the Matter of Nikhil Chopra V/s JVPD Properties Pvt. Ltd. Complaint number CC005000000001348 The Maha RERA observed That:
  • The complainant has filed this complaint under Section 18 to claim refund of his amount from the respondents with interest
  • The respondents issued a letter dated 24.07.2017 expressing their inability to complete the project.
  • The respondents in their reply contended that the complainant is an investor and therefore, the Authority has no jurisdiction to entertain this complaint.
  • The respondent further contended that for the application under Section 18 of RERA, there must be agreement for sale and the complainant does not have it.
  • The Authority observed that lt is a fundamental principle of law of contract that once a proposal is accepted; it becomes a contract, provided it is coupled with lawful consideration and lawful object and it is not specifically barred by any statute. There can be oral agreement for sale or it can be also in written form. in this case the complainant has relied upon an allotment letter, admittedly issued by the respondents on 11.07.2014
  • The Authority observed that It is the contention of the respondents that there is no concluded contract. Hence, it is necessary to look at the allotment letter. On its perusal it becomes clear that the complainant agreed to purchase the flats and the respondents agreed to sell them for the consideration mentioned in the letter.
  • The respondents agreed to deliver the possession of the flats within 42 months from receipt of final commencement certificate from plinth level. All these terms and conditions have been accepted and signed by both the parties. Therefore, there remains no doubt that it is a concluded contract which has taken place on 11.07.2014.

The Authority therefore ordered
  • The respondents shall refund the amount mentioned in Para-l0 of this order
  • The respondents shall pay the complainant Rs. 20,000/- towards the cost of the complaint.
  • The respondents shall pay simple interest at the rate of 10.05% from the dates of receipts of the amount till they are refunded.
  • The charge of aforesaid amount shall be on the respondents’ property under project bearing C.T.S. No. 634/5 and 64D “S” ward of village Tirandaz, Taluka Kurla, Mumbai, till the complainant’s claim is satisfied.
Written By: Advocate Rajan Kumar Hans ( Hans & Hans Advocates and Consultant)
He can be reached at: +91-9700130033 or [email protected]

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