Bombay High Court
M/S SEEMA PROMOTERS AND BUILDERS PVT LTDversusCOL ASOKE KUMAR
- Decided
- Disposal
- Disposed Off
- Bench
- N JAMADAR
Holding
The High Court dismissed the appeal, setting aside the Tribunal's refund order, finding no substantial question of law and that the refund claim was not maintainable under RERA 2016.
Summary
The appellant, Seema Promoters and Builders Pvt Ltd, appealed against an order of the Maharashtra Real Estate Appellate Tribunal directing it to refund the full consideration paid by the allottees for two shops, together with interest. The allottees had entered into sale agreements in June 2017, with possession promised by 31 March 2019, but the occupancy certificate was only obtained in February 2020. Prior to obtaining the certificate, the allottees sent a letter on 17 October 2019 invoking Section 18(1) of the Real Estate (Regulation and Development) Act, 2016, seeking a refund. The Tribunal dismissed the allottees' complaint before the certificate but later allowed the appeal and ordered the refund. The High Court held that because possession was not delivered by the agreed date and the refund request was made before the occupancy certificate, the Tribunal erred in not considering the statutory provisions, and there was no substantial question of law; consequently, the appeal was dismissed and the refund order set aside.
Issues considered
- Whether the allottees are entitled to a refund of the consideration under Section 18(1) of RERA 2016 when possession is delayed beyond the contractual date.
- Whether Section 19(10) of RERA 2016 obliges the allottees to accept possession within two months of the occupancy certificate, thereby barring a refund claim.
- Whether a substantial question of law arose for the Appellate Tribunal to consider in directing the refund.
Legislation cited
- Real Estate (Regulation and Development) Act, 2016 — s. 18(1), 19(10)
Subjects
- RERA 2016
- refund of consideration
- occupancy certificate
- possession delay
- interest on refund
- appellate tribunal
- contractual breach
Judgment
7-SA-320-2026.DOC
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
CIVIL APPELLATE JURISDICTION
SECOND APPEAL NO. 320 OF 2026
M/s Seema Promoters And Builders Pvt Ltd ..Appellant
Versus
Col Asoke Kumar & Anr …Respondents
WITH
INTERIM APPLICATION NO. 5196 OF 2026
IN
SECOND APPEAL NO. 320 OF 2026
Mr. Rajesh A Tekale, for the Appellant/Applicant.
CORAM: N. J. JAMADAR, J.
DATE : 22nd JULY 2026
ORAL ORDER:
1. Heard Mr. Rajesh A Tekale, the learned Counsel for the Appellant.
2. This Second Appeal is directed against a judgment and order
ARUN
RAMCHANDRA
SANKPAL
Digitally signed by
ARUN RAMCHANDRA
dated 23rd April 2026 passed by the Maharashtra Real Estate Appellate
SANKPAL
Date: 2026.07.24
18:21:41 +0530
Tribunal, Mumbai, in Appeal No. AT006000000144418, whereby the
Appellate Tribunal has allowed the Appeal preferred by the Appellants-
Allottees and directed the Appellant-Promoter to refund the entire
consideration amount paid by the Appellants-Allottees with interest as
per the State Bank of India’s highest Marginal Cost of Lending Rate
ARS 1/5
7-SA-320-2026.DOC
(MCLR) + 2% calculated from the respective dates of payment till
realization of the entire amount to the Appellants-Allottees.
3. The Allottees have booked the shops bearing Nos. 5 and 6 and an
Agreement for Sale was executed on 27 th June 2017. Out of the agreed
consideration of Rs.10,42,600/- for Shop No.5 and Rs.12,50,500/- for
Shop No. 6, the Allottees have paid the amount of Rs.9,46,520/- and
Rs.11,37,500/- respectively.
4. Under the terms of the Agreement, the possession of the subject
shops was to be delivered on or before 31 st March 2019. Evidently, the
Appellant-Promoter did not complete the project before the scheduled
agreed date of delivery of possession. The occupancy certificate was
obtained in the month of February 2020.
5. Before the occupancy certificate could be obtained and possession
offered, the Allottees have addressed a letter to the promoter on 17 th
October 2019 and sought refund of the consideration parted with by the
Allottees along with interest thereon, invoking the provisions contained
in Section 18(1) of the Real Estate (Regulation and Development) Act,
2016 (“the RERA 2016”).
6. Eventually, the Allottees lodged complaint before the
Maharashtra Real Estate Regulatory Authority, Mumbai (“the Regulatory
Authority”). By an order dated 23rd January 2023, the Regulatory
Authority was persuaded to dismiss the complaint as the occupancy
ARS 2/5
7-SA-320-2026.DOC
certificate in respect of the subject shops was obtained on 5 th February
2020 and the withdrawal notice seeking refund of the consideration
was addressed by the Allottee on 12th February 2021.
7. Being aggrieved, the Allottee preferred an Appeal before the
Appellate Tribunal. By the impugned order, the Appellate Tribunal was
persuaded to allow the Appeal and direct the refund of the amount of
consideration paid by the Allottee along with interest.
8. Mr. Rajesh Tekale, the learned Counsel for the Appellant,
submitted that since the occupation certificate was obtained in the
month of February 2020, the Allottee could not have declined to take
possession of the subject shops. It was obligatory on the Allottee to take
the possession of the subject shops within a period of two months of the
grant of the occupation certificate under Section 19(10) of RERA 2016.
The Appellate Tribunal has committed a gross error in not considering
the import of the provisions contained in Sections 18 and 19(10) of the
RERA 2016. Thus, according to the learned Counsel for the Appellant,
a substantial question of law arises for consideration.
9. I find it difficult to accede to the submissions on behalf of the
Appellant. The fact remains that the possession of the subject shops was
to be delivered by 31st March 2019. Indisputably, the shops were not
ready for delivery of possession by the expiry of the agreed date for the
delivery of possession. The occupancy certificate was obtained on 5 th
ARS 3/5
7-SA-320-2026.DOC
February 2020. Prior to the obtaining of the occupancy certificate, the
Allottee had addressed the communication and sought the refund of the
consideration.
10. In paragraphs 17 and 18 of the impugned judgment, the
Appellate Tribunal has extracted the purport of the communication
addressed by the Allottee seeking the refund of the amount. It is
specifically recorded that in the email of 17 th October 2019, the
attention of the Appellant-Promoter was drawn to the provisions
contained in Section 18 of RERA 2016. The Appellate Tribunal has
referred to the series of correspondence, addressed by the Allottee,
before the grant of the occupancy certificate.
11. In this view of the matter and having regard to the ultimate
order passed by the Appellate Tribunal thereby directing the refund of
the entire amount of consideration along with interest thereon in the
face of the indisputable fact that the possession of the subject shops
could not be delivered by 31 st March 2019, and the occupation
certificate was obtained after the Allottee sought the refund of the
amount, no question of law, much less a substantial question of law,
arises for consideration.
12. The Appeal stands dismissed.
ARS 4/5
7-SA-320-2026.DOC
13. In view of the dismissal of the Appeal, the Interim Application
stands disposed.
[N. J. JAMADAR, J.]
ARS 5/5
Checking your session…