MahaREAT: An act of the partner is binding on the partnership firm.

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By Fiona Mehta

 

In the matter of Mr. Jervis Anthony Creado and Mrs. Rose Jervis Anthony Creado vs. Aishwarya Light Construction Company (Appeal No. AT006000000052415), this appeal emanates from the order dated 24th December, 2019 passed by MahaRERA whereby the learned Authority had not granted reliefs of interest / compensation under section 18 of the RERA as sought by appellants in their complaint.

 

Facts of the case: The┬ácomplainants have booked a flat No. 504, on 5th floor, ‘A’
wing ad measuring 466 sq. ft. along with one open parking space in the project ‘Aishwarya Heights’ of the respondent situated at Andheri, Mumbai for a consideration of Rs. 80,00,000/-. The respondent had issued allotment letter dated 27th February 2017 to the allottees. The allottees have paid entire consideration to the developer.

On 27th February, 2017 the respondent has executed unregistered agreement for sale with the CC006000000141152 filed by the appellants whereby, the complainants and agreed to handover possession of the subject flat to complainants by December, 2017. The developer neither registered agreement for sale nor handed over possession of suit flat to complainants therefore the complainants filed complaint and sought directions to developer.

The developer appeared in the complaint and disputed the claim of complainants contending in his reply that the alleged agreement for sale does not confer any right to the complainants as it was an arrangement between them and therefore the same has not been registered.

It is worthy to note that though the agreement for sale was undated but the facts remains that one of the partners of the respondent has agreed to handover the possession of the subject flat to allottees by December, 2017. An act of the partner is binding on the partnership firm.

 

What options does Section 18 of RERA Act gives you? Section 18 gives an option to the allottees either to continue with the project by claiming interest on delayed period of possession or to withdraw from the project and to claim refund of entire amount along with interest including compensation. In the instant case allottees have chosen the first option. It clearly shows that the allottees are interested in getting possession of the flat as they have already paid substantial amount out of the total price of the flat to the promoter.

 

Order: The impugned order shows that the learned authority has denied relief of interest on account of delayed possession only for the reason that there is no registered agreement for sale executed between the parties showing any agreed date of possession. However, the material produced on record and the impugned order clearly indicate that one of the partners of respondent executed undated agreement for sale with the complainants.

Moreover, the respondent has also not disputed the factum of execution of undated agreement for sale by its partner. Therefore, we are of the view that the allottees are entitled to interest on their investments from January, 2018. Therefore, the appeal is allowed by the MahaREAT.

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