Supreme Court Orders Bengal Peerless Housing to Hand Over Flat Within Two Weeks
The Supreme Court has directed Bengal Peerless Housing Development Co. Ltd. to hand over possession of a flat to the buyers within two weeks, setting aside the NCDRC's order that had held the delay was not due to 'Force Majeure'.
Supreme CourtBengal Peerless HousingForce MajeureNcdrcConsumer DisputesReal Estate NewsNov 17, 2025
The National Consumer Disputes Redressal Commission (NCDRC) had earlier ruled in favor of the buyers, awarding them simple interest at 6% from the committed date of possession until the date of valid partial Occupancy Certificate (OC) or offer of possession, whichever was later. The NCDRC had also held that the circumstances causing the delay could not be construed as 'Force Majeure.'
However, the Supreme Court, in its recent judgment, set aside the NCDRC's reasoning, stating that the delays due to various factors such as stay on construction, floods, and the refusal of the electricity company to lay cables to the building could not be considered as 'Force Majeure.' The Court directed Bengal Peerless Housing to hand over the possession of the flat within two weeks, in the presence of the company's representatives.
The buyers had initially booked the flat and paid the required consideration, but the company failed to deliver the possession as promised. The buyers then approached the NCDRC, which ruled in their favor. The company, aggrieved by the NCDRC's decision, appealed to the Supreme Court, arguing that the delays were due to unforeseen circumstances and should be considered 'Force Majeure.'
The Supreme Court, while upholding the NCDRC's order to award simple interest at 6% from 07-09-2015 to the date of offer of possession or date of receipt of valid partial OC, clarified that the interest would be calculated from 07-09-2015 to 05-07-2016. Additionally, the Court directed the company to pay a lump-sum compensation of Rs. 10,00,000 to the buyers within two weeks.
The Court also noted that since the buyers did not file an appeal, they are not entitled to any further compensation beyond what has been awarded. The Court's decision aims to provide a fair and equitable resolution to the long-standing dispute, ensuring that the buyers receive their rightful possession and compensation for the delay.
This ruling sets a precedent for similar cases involving delays in the construction and handover of properties, emphasizing the importance of considering 'Force Majeure' events and the need for timely resolution of consumer disputes in the real estate sector.
Bengal Peerless Housing Development Co. Ltd. is a well-known real estate developer in West Bengal, known for its various housing projects. The company has been involved in several legal disputes over the years, highlighting the need for stricter regulations and transparency in the real estate industry to protect the interests of homebuyers.
The Supreme Court's decision is a significant victory for the buyers and underscores the judiciary's commitment to upholding consumer rights and ensuring accountability in the real estate sector.
Frequently Asked Questions
What is the main issue in the case involving Bengal Peerless Housing?
The main issue in the case is the delay in the handover of a flat booked by the buyers, which was initially scheduled for possession on 07-09-2015. The buyers approached the NCDRC, which ruled in their favor, and the company appealed to the Supreme Court.
What did the NCDRC initially decide?
The NCDRC initially ruled in favor of the buyers, awarding them simple interest at 6% from the committed date of possession until the date of valid partial Occupancy Certificate (OC) or offer of possession, whichever was later. The NCDRC also held that the delays could not be considered 'Force Majeure.'
What did the Supreme Court decide?
The Supreme Court set aside the NCDRC's reasoning, stating that the delays due to various factors such as stay on construction, floods, and the refusal of the electricity company to lay cables could not be considered 'Force Majeure.' The Court directed Bengal Peerless Housing to hand over the possession of the flat within two weeks and pay a lump-sum compensation of Rs. 10,00,000 to the buyers.
What is 'Force Majeure' in the context of this case?
'Force Majeure' refers to unforeseen and uncontrollable events that prevent a party from fulfilling their contractual obligations. In this case, the company argued that the delays were due to such events, but the Supreme Court disagreed.
What is the significance of this ruling?
This ruling is significant as it sets a precedent for similar cases involving delays in the construction and handover of properties. It emphasizes the importance of considering 'Force Majeure' events and the need for timely resolution of consumer disputes in the real estate sector.
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