Dismissed

Sobha Limited v. Sanjay Gangadharan Nambiar

Kerala HC3 Jan 2024MSA/36/2023

Case brief

AI extract

What is this about?

Miscellaneous second appeal by builders challenging an appellate Tribunal order granting interest to flat buyers. The court found the statutory interest rate justified per NBCC (India) Limited v. Joshy Varghese, dismissed the appeal without admission, granted two weeks to pay, and deferred coercive steps.

What did the court decide?

Two weeks' time to appellants to pay; coercive steps deferred for two weeks.

Sobha Limited Vs Sanjay Gangadharan Nambiar — Kerala HC (2024) — LawSathi Research

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IN THE HIGH COURT OF KERALA AT ERNAKULAM

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PRESENT

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THE HONOURABLE MR. JUSTICE A. BADHARUDEEN

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WEDNESDAY, THE 3RD DAY OF JANUARY 2024 / 13TH POUSHA, 1945

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MSA NO. 36 OF 2023

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AGAINST THE ORDER IN REFA NO.71/2022 OF KERALA REAL ESTATE APPELLATE TRIBUNAL, ERNAKULAM

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AGAINST THE ORDER IN COMPLAINT NO.245/2021 OF KERALA REAL ESTATE

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REGULATORY AUTHORITY, THIRUVANANTHAPURAM

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APPELLANTS/RESPONDENTS 1 AND 3/RESPONDENTS 1 AND 3:

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1SOBHA LIMITED
SARJAPUR MARATHAHALLI OUTER RING ROAD, DEVARABISANAHALLI,
BELLANDUR POST, BENGALURU,PIN - 560103 REPRESENTED BY ITS
HEAD - COMMERCIAL OPERATIONS AND AUTHORISED SIGNATORY,
MAJO JOSEPH.

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2M/S PURVANKARA LTD.
NO. 130/1, ULSOOR ROAD, BENGALURU, PIN - 560042
REPRESENTED BY ITS DGM-LEGAL AND AUTHORISED REPRESENTATIVE
SRI. SREEJITH LENIN DAS

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BY ADVS.
ABRAHAM MATHEW (VETTOOR)
ANIL ABEY JOSE
VISHNUJA P.M.

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RESPONDENTS/APPELLANTS/COMPLAINANTS:

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1SANJAY GANGADHARAN NAMBIAR
FLAT NO. 803, 8TH FLOOR, IIDL AERIE, SHIHAB THANGAL ROAD,
PANAMPILLY NAGAR, KOCHI, PIN - 682036

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2USHA VR
FLAT NO. 803, 8TH FLOOR, IIDL AERIE, SHIHAB THANGAL ROAD,
PANAMPILLY NAGAR, KOCHI, PIN - 682036

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BY ADVS.

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M.P.SHAMEEM AHAMED
AKHIL PHILIP MANITHOTTIYIL
DANIYA RASHEED PALLIYALIL

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THIS MISC. SECOND APPEAL HAVING COME UP FOR ADMISSION ON
03.01.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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MSA NO. 36 OF 2023 2

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JUDGMENT

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Dated this the 3^rd day of January, 2024

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In this Miscellaneous Second Appeal, filed under Section 58 of the Real Estate (Regulation and Development) Act, 2016 r/w Section 100 and Order XLII Rule 1 of the Code of Civil Procedure, order of the appellate authority to grant the interest, is put under challenge.

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Heard the learned counsel for the appellants as well

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as the learned counsel appearing for the respondents at the time of admission.

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Though the learned counsel for the appellants argued at length to unsustain 12% interest granted by the appellate Tribunal, on perusal of the order, it appears that the same is as per the statute and therefore, the order is perfectly justified. In the decision in NBCC (India) Limited v. Joshy Varghese reported in [2023 (6) KHC 243] , this Court in Paragraph No.13, held as under:

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“13. Reading the above provisions along with the judgment of the Apex Court reported in

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MSA NO. 36 OF 2023 3

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Newtech Promoters and Developers Pvt.Ltd 's case (supra), the legal position is no more resintegra and payment of interest by the promoter to the allottee or by the allottee to the promoter, as the case may be, shall be the State Bank of India's Benchmark Prime Lending Rate plus two percent interest and shall be computed as simple interest as provided under Rule 18 of the Kerala Real Estate (Regulation and Development) Rules, 2018. However, payment of interest by the allottee to the promoter as provided under Section 19(7) of the Kerala Real Estate (Regulation and Development) Act, 2016, can be one in deviation from the Rule 18 and the interest can be reduced when mutually agreed to between the promoter and the allottee and not in any other manner. Thus the substantial question of law involved in these appeals is answered.”

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Faced with the situation, the learned counsel for the appellants sought two weeks time to clear the payment and the same is not seriously opposed by the learned counsel appearing for the respondents.

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