Bombay High Court
KEEMAYA BUILD PRIVATE LIMITEDversusNITIN M DESHPANDE
- Decided
- Disposal
- Disposed Off
Holding
The Court held that the appeals could not be entertained under Section 100 of the CPC due to the unresolved balance liability, but protective directions must be imposed to safeguard the promoter’s rights.
Summary
The High Court considered two interim applications seeking condonation of delay in filing appeals against an order of the Maharashtra Real Estate Appellate Tribunal directing the promoter to hand over possession of flats upon payment of Rs.1,91,30,673. The Court condoned the delays and registered the appeals. The substantive dispute concerned the allottees' liability to pay a further Rs.41,70,138 and whether interest could be awarded for delayed possession. The Court held that, because the balance amount remained unsettled, the appeals could not be entertained under Section 100 of the CPC, but protective measures were necessary to safeguard the promoter’s interests. Accordingly, the Court ordered the allottees to give an undertaking to deposit the balance with interest if the appeal is decided against them, to give prior notice before withdrawing the appeal, and barred the tribunal from disposing of the appeal without hearing the promoter. The interim applications were disposed.
Issues considered
- Whether the delay in filing the appeals can be condoned.
- Whether the appeals can be entertained under Section 100 of the Civil Procedure Code given the pending dispute over the balance amount.
- Whether the appellate tribunal can award interest for delay in delivery of possession.
- What protective measures are appropriate to protect the promoter's interest pending final adjudication.
Legislation cited
- Code of Civil Procedure, 1908 — s. 100
Subjects
- real estate
- possession
- balance payment
- interest
- appellate tribunal
- interim application
- condonation of delay
- Civil Procedure Code
- Section 100
- protective measures
Judgment
902-903-IA-6655-2026.DOC
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
CIVIL APPELLATE JURISDICTION
INTERIM APPLICATION NO.6655 OF 2026
WITH
INTERIM APPLICATION NO.6765 OF 2026
IN
SECOND APPEAL(ST) NO.22285 OF 2026
WITH
INTERIM APPLICATION NO.6842 OF 2026
WITH
INTERIM APPLICATION NO.6844 OF 2026
IN
SECOND APPEAL(ST) NO.23064 OF 2026
Keemaya Build Private Limited ..Applicant/Appellant
Versus
Nitin M. Deshpande & Ors …Respondents
Adv. Karl Tamboli a/w Adv. Himanshu Agarwal & Adv. B. Mohamedi i/by
Bellator Legal ervices LLP for the Appellant in SA(ST)/22285/2026.
Adv. Vikramjeet Agarwal a/w Adv. Himanshu Agarwal & Adv. Birrul
Mohamedi i/by Bellator Legal Services LLP for the Appellant in
SA(ST)/23064/2026.
Adv. Aditi Naikare i/by Adv. Snehal Jadhav, for the Respondent in both
Appeals.
CORAM : N. J. JAMADAR, J.
DATE : 30th SEPTEMBER 2026
P.C.:
Interim Application No.6655 of 2026 in Second Appeal(ST) No.22285
of 2026:
1. This is an Application for condonation of delay of 24 days in filing the
Appeal against Order dated 2nd April, 2026 passed by the Maharashtra Real
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Estate Appellate Tribunal in Miscellaneous Application No.506 of 2025 and
Miscellaneous Application No.507 of 2025.
2. For the reasons assigned in the Application and to advance the cause of
substantive justice, the delay in preferring the Appeal deserves to be condoned.
3. The delay stands condoned.
4. Interim Application stands disposed.
5. The Second Appeal (Stamp) No. 22285 of 2026 be registered.
Interim Application No.6842 of 2026 in Second Appeal(ST) No.23064
of 2026:
6. This is an Application for condonation of delay of 64 days in filing the
Appeal against an Order dated 2nd April, 2026 passed by the Maharashtra Real
Estate Appellate Tribunal in Miscellaneous Application No.506 of 2025 and
Miscellaneous Application No.507 of 2025.
7. For the reasons assigned in the Application and to advance the cause of
substantive justice, the delay in preferring the Appeal deserves to be condoned.
8. The delay stands condoned.
9. Interim Application stands disposed.
10. The Second Appeal (Stamp) No. 23064 of 2026 be registered.
Second Appeal(ST) No.22285 of 2026 and Second Appeal(ST)
No.23064 of 2026:
11. Heard the learned Counsel for the parties.
12. These Second Appeals are directed against an Order dated 2 nd April
2026 in Miscellaneous Application No.506 of 2025 and Miscellaneous
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Application No.507 of 2025 passed by the Maharashtra Real Estate Appellate
Tribunal ("Appellate Tribunal") whereby, in the Appeals preferred by the
Respondent-Allottee, the Appellate Tribunal has, inter alia, directed the
Appellant-Promoter to handover possession of the subject flats to the Allottees
within a period of 30 days, upon payment of a sum of Rs.1,91,30,673/- to the
Promoter.
13. The parties are at issue over the amount which the Allottees are liable to
pay to the Promoter. There is also a larger issue as to whether, in an Appeal
preferred by the Allottees against an Order passed by the Authority in an
Application for termination of the contract filed by the Promoter, the Appellate
Tribunal could award interest for the delay in delivery of possession.
14. The Appellate Tribunal has noted that, even after the payment of the
aforesaid amount of Rs.1,91,30,673/-, the controversy remains over the
Allottees liability to pay a sum of Rs.41,70,138/- and all the issues in connection
therewith would be decided at the stage of final adjudication of the Appeal.
15. Mr. Karl Tamboli, the learned Counsel for the Appellant, submitted that,
the Appellant-Promoter has received the amount of Rs.1,91,30,673/-. However,
the direction to deliver possession of the subject flats, while the amount of
Rs.41,70,138/- remains outstanding, as per the claim of the Promoter, would
leave the promoter in the lurch in the event the Appeal is decided against the
Allottees or the latter simply does not prosecute the Appeal. It was further
submitted that the Allottees also need to be put to terms that they shall not part
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with the possession of, or create third party interest in, the subject flats till the
Appeals are decided by the Appellate Tribunal.
16. The learned Counsel for the Respondents submitted that, the Appellate
Tribunal has clarified in the impugned Order itself that, all the issues are kept
open for adjudication at the stage of final adjudication of the Appeal. Therefore,
the interest of the Appellant-Promoter is adequately protected.
17. Since the controversy between the parties revolves around the liability to
pay the balance amount of Rs.41,70,138/-, as claimed by the Appellant-
Promoter, this Court does not consider it appropriate to entertain the Appeal
under the regime of Section 100 of the Civil Procedure Code, 1908.
Nonetheless, a few protective measures are required to ensure that, in the event
the final outcome is against the Allottees, the Appellant-Promoter is not
presented with a fait accompli. Hence, the following Order:
ORDER
(I) The Appeals stand disposed subject to the following directions:
(i) The Allotees shall file an undertaking before the Appellate
Tribunal on an affidavit, that in the event the Appeals are decided
against the Allottees, the Allottees will deposit such amount along with
interest at such rate as may be directed by the Appellate Tribunal, within
the stipulated period.
(ii) The Allottees shall give prior notice to the Appellant in the event
the Allottees propose to withdraw the Appeals.
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(iii) In any event, the Appellate Tribunal shall not permit the
withdrawal of the Appeals or dispose of the Appeals for want of
prosecution, without providing an opportunity of hearing to the
Appellant-Promoter-Respondent in the Appeals, on the aspect of the
liability of the Allottees to pay the balance amount as claimed by the
Appellant-Promoter.
(II) In view of the disposal of the Appeals, the Interim Applications also
stand disposed.
[N. J. JAMADAR, J.]
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