Authority: High Court of Judicature at Bombay, Civil Appellate Jurisdiction

Order Date: 14 October 2026 (Reserved on 23 September 2026)

Case Overview

  • Parties: Orbit Enterprises, a partnership firm (appellant) represented by partners Rajen Dhruv and Sarkar Heritage, versus Vazirani Realty Private Limited (respondent).
  • Appeals: Second Appeal Nos. 333, 334, 335 of 2026, each with corresponding interim applications (5578, 5575, 5564 of 2026).
  • Background: The dispute stems from the “Indian Newspapers Society” residential project. The respondent booked nine units on the 9th floor (units 901, 902, 905‑911). Agreements for sale were executed for units 907 and 908 with a delivery date of 31 May 2015. Allotment letters were issued for units 909‑911 (delivery 31 May 2025), and for units 901, 902, 905, 906 (delivery 30 June 2017).
  • Complaints: The allottee alleged failure to execute/register sale agreements for several units and failure to deliver possession as agreed, seeking execution of agreements, delivery of possession, and interest for delay.
  • Regulatory Proceedings: Maharashtra Real Estate Regulatory Authority (MahaRERA) issued an interim order on 16 December 2019 directing execution of agreements dated 8 July 2020 for units 901, 902, 905, 906, 909, 910, 911. The promoter still failed to deliver possession.
  • Writ Petition: The allottee filed Writ Petition No. 5542 of 2021 in this Court. A Division Bench ordered delivery of keys on 24 September 2021.
  • MahaRERA Order: Directed the promoter to pay interest for delayed possession from 1 May 2017 to 12 February 2021 for units 907‑911, and from 1 July 2007 to 12 February 2021 for units 901, 902, 905, 906. It also extended Covid‑19 moratorium benefits (Notifications/Orders Nos. 13 and 14 dated 2 April 2020 and 18 May 2020).
  • Appellate Tribunal Findings: Found no justification for delay; affirmed that the allottee was entitled to interest under Section 18 of the Real Estate (Regulation and Development) Act, 2016 (RERA 2016). Modified the Authority’s order to direct interest from the agreed delivery dates to the actual delivery date (24 September 2021) and rejected the moratorium extension as the delivery dates pre‑dated the pandemic.
  • Promoter’s Arguments: Asserted that possession was offered after obtaining the Occupation Certificate (OC) on 12 February 2021 and that the allottee failed to take possession; relied on a letter dated 25 February 2021. Also challenged the Tribunal’s modification of the moratorium benefit.
  • Respondent’s Counter‑arguments: Highlighted that the Tribunal observed no evidence of any communication offering possession, that the letter of 25 February 2021 pertained only to five units, and that the allottee had paid almost the entire consideration (₹78,25,61,184) by 3 July 2018. Emphasised that the agreed possession dates were well before the Covid‑19 pandemic.
  • Legal Provisions Cited: Sections 18(1) and 19(4) of RERA 2016 (right to interest for delay), Supreme Court precedents (Newtech promoters vs. State of UP; Imperia Structures vs. Anil Patni), and procedural provisions of Order XLI Rule 33 of the Code of Civil Procedure, 1908.
  • Court’s Reasoning: Accepted the Tribunal’s factual findings that the promoter did not offer possession; therefore interest liability continued until actual possession on 24 September 2021. Rejected the promoter’s claim of offering possession and the argument on moratorium extension. Confirmed that the Tribunal’s modification of the Authority’s order was within its powers under Order XLI Rule 33.

Final Outcome

  • The Second Appeals (Nos. 333‑335 of 2026) are dismissed with costs.
  • All related interim applications are disposed.

Topics: Legal Judgment, Real Estate Regulation, Interest on Delayed Possession