Summary
Homebuyers who had paid nearly the entire villa price were entitled to a refund after prolonged failure to deliver possession. Even assuming the villa was eventually ready, a delay approaching five years meant that the bargain could not be forced on them. The refund award with ten per cent simple interest and litigation costs was upheld, and the villa was attached against sale or creation of third-party rights until satisfaction of the award.
Issues
- Whether a builder could insist on eventual possession rather than refund after prolonged delay.
- What protection should secure satisfaction of the refund award.
Held
- Payment of Rs.8.14 crore against the Rs.8.31 crore price and failure to deliver by the promised date established deficiency in service. The requested additional work and municipal stop-work notices did not justify imposing this prolonged delay on the purchasers. (¶¶ 3–5, 10)
- Even accepting the builder’s assertion of present readiness, the delay of almost five years entitled the purchasers to withdraw and obtain their money with reasonable interest. They could not be compelled to complete the bargain at that stage. (¶ 7–10)
- The identified villa was not to be sold or subjected to third-party rights while the award remained unsatisfied. It would remain attached and subject to appropriate execution orders until complete satisfaction. (¶ 11)
Result
Builder’s appeals dismissed without costs. Refund of Rs.8.14 crore with 10% simple annual interest from each payment until refund, plus Rs.25,000 litigation costs, affirmed. Villa attached and third-party dealings prohibited until full satisfaction.