*Laureate Build-well Private Limited Vs Charanjeet Singh*
*Forum- Supreme Court of India*
*Date- 22nd July, 2021*

*Sub-Whether Subsequent purchaser of an apartment from the original allottee in an under construction project stands on the same footing as the original purchaser and entitled to same relief*

A 3 judges bench of Supreme Court today (22nd July 2021) in a landmark judgement was called upon to decide whether the subsequent purchaser of an apartment from the original allottee in an under construction project is entitled to the same relief as the original allottee is entitled to in case of delay in handing over possession. The Builder in this case cited the earlier decisions of the Apex court in the case of *HUDA Vs Raje Ram (2008) 17 SCC 407(SC) and Wing Commander Arifur Rahman Khan and Anr. v. DLF Southern Homes Pvt. Ltd.(2020) SCCOnline 667(SC) **where it was held that when the allottee in a housing project transfers his or her rights in favour of another, such a third party cannot claim equities to the same extent as the original allottee, especially as regards a claim for interest. However, the apex court overruled the decision in Raje Ram (supra) which was applied in Wg. Commander Arifur Rehman (supra) and observed that these judgements cannot be considered good law. The court observed that the nature and extent of relief, to which a subsequent purchaser can be entitled to, would be fact dependent.

However, it cannot be said that a subsequent purchaser who steps into the shoes of an original allottee of a housing project in which the builder has not honoured its commitment to deliver the flat within a stipulated time, cannot expect any – even reasonable time, for the performance of the builder’s obligation. The court was guided of the precarious position in which the purchasers of the flat are put to in case the flat is not delivered and finally taking into account the object of the legislation Consumer Protection Act to address complaints of consumers (an expression defined and interpreted widely) and provide a forum for their quick redressal, and, furthermore, wherever third parties have claimed relief, technicalities have been brushed aside consistently, by this court, the court upheld the order of the National Consumer Forum by allowing interest to the subsequent purchaser also though from a different date.

*This is a landmark judgement in the interest of flat Buyers*

Ramesh Patodia
22-07-2021