The Court held that the builder had forfeited its right to file ...

Builder Loses Right to Written Defense but Can Join Proceedings; Compensation Adjusted for Delayed Possession with 6% Interest.

July 24, 2024

Case Laws     Indian Laws     SC

The Court held that the builder had forfeited its right to file a written statement, but its right to participate in the proceedings was protected. The rigour of the rule of pleadings under the Code of Civil Procedure mandates that no pleading shall raise any new ground or contain allegations inconsistent with previous pleadings. The builder did not seek permission to cross-examine the witness or raise grievance of denial of such opportunity. The builder could be permitted only to argue legal questions, lapses, and non-admissibility of evidence. The Court found no error in the NCDRC's decision, as the builder could not bring forth anything admissible due to the forfeiture order. The appeal was partly allowed, modifying the formula for payment of compensation for delay in handing over possession of flats, directing the developer to pay interest at 6% per annum from the due date till the date of offering possession.

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