Real Estate Update | Part Occupancy Certificate Cannot Constitute Delivery Of Possession

The Supreme Court in the recent case of Venkataraman Krishnamurthy & Or. v. Lodha Crown Buildmart Pvt. Ltd. has held that a Part Occupancy certificate cannot constitute a proper delivery of possession and is not equivalent to an Occupancy certificate.

BRIEF FACTS:

The appellants intended to purchase an apartment in a building to be constructed by the respondentcompany at New Cuffe Parade, Wadala, Mumbai. The parties executed Agreement to Sell dated 29 November 2013 ("Agreement"). The sale consideration was fixed at Rs 7,55,50,956/-. As per the payment schedule, this sale consideration was to be paid in four sets of 'application money', and the balance amount, being Rs 5,83,53,615/-, was to be paid on initiation of fit outs. As per the Agreement, possession of the apartment was to be delivered to the appellants for fit outs by 30 June 2016 or, with a grace period of one year, by 30 June 2017.