{"id":7490,"date":"2026-02-24T04:42:00","date_gmt":"2026-02-23T23:12:00","guid":{"rendered":"https:\/\/lawfultalks3.selfst.art\/who-pays-for-delayed-flats-supreme-court-answers-not-the-landowner\/"},"modified":"2026-07-21T17:48:43","modified_gmt":"2026-07-21T12:18:43","slug":"who-pays-for-delayed-flats-supreme-court-answers-not-the-landowner","status":"publish","type":"post","link":"https:\/\/lawfultalks3.selfst.art\/who-pays-for-delayed-flats-supreme-court-answers-not-the-landowner\/","title":{"rendered":"Who Pays For Delayed Flats? Supreme Court Answers \u2014 Not the Landowner"},"content":{"rendered":"\n<p dir=\"ltr\"><span style=\"font-size:14pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\">The Supreme Court has ruled that simply giving a developer permission to enter into sale agreements, carry out construction, and hand over possession of flats does not make a landowner responsible for delays in construction. A bench of Justice PS Narasimha and Justice Alok Aradhe rejected the homebuyer&rsquo;s appeal against the landowner. The Court also upheld the earlier ruling of the National Consumer Disputes Redressal Commission (NCDRC), which had cleared the landowners of any responsibility for the construction delay.<\/span><\/span><\/p>\n \n \n \n <p dir=\"ltr\" style=\"text-align:center\"><span style=\"font-size:14pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\"><\/span><\/span><\/p>\n \n \n \n <p dir=\"ltr\"><span style=\"font-size:14pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\"><strong>Background of the Dispute:<\/strong><\/span><\/span><\/p>\n \n \n \n <p dir=\"ltr\"><span style=\"font-size:14pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\">The dispute began after the landowners and the developer signed a Joint Development Agreement (JDA) and also executed a General Power of Attorney (GPA) in favour of the developer.<\/span><\/span><\/p>\n \n \n \n <p dir=\"ltr\"><span style=\"font-size:14pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\">When the promised time for handing over the flats, including the grace period, had passed, the homebuyers (appellants) sent a notice to both the developer and the landowners (respondents). They then filed a complaint before the National Consumer Disputes Redressal Commission (NCDRC), seeking relief.<\/span><\/span><\/p>\n \n \n \n <p dir=\"ltr\"><span style=\"font-size:14pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\"><strong>Proceedings Before NCDRC:<\/strong><\/span><\/span><\/p>\n \n \n \n <p dir=\"ltr\"><span style=\"font-size:14pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\">The NCDRC directed the developer to complete the construction of the flats.However it did not hold the landowners liable for the delay. The homebuyers then took the matter to the Supreme Court, seeking to make the landowners jointly and severally liable for the delay.<\/span><\/span><\/p>\n \n \n \n <p dir=\"ltr\"><span style=\"font-size:14pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\">The appellants argued that the General Power of Attorney executed in favour of the developer created a principal-agent relationship between the landowners and the developer. However, the landowners contended that liability for the delay lay solely with the developer. They relied on the terms of the Joint Development Agreement (JDA) and the GPA, which, according to them, protected and indemnified the landowners from any liability.<\/span><\/span><\/p>\n \n \n \n <p dir=\"ltr\"><span style=\"font-size:14pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\"><strong>Judgement and Analysis:<\/strong><\/span><\/span><\/p>\n \n \n \n <p dir=\"ltr\"><span style=\"font-size:14pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\">After examining the JDA, the GPA and the arguments from both sides, the bench observed that the developer had the rights to carry out construction, sell the flats, and hand over possession. Therefore, the developer was liable for the delay in handing over possession, as there was no delay on the part of the landowners.<\/span><\/span><\/p>\n \n \n \n <p dir=\"ltr\"><span style=\"font-size:14pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\"><strong>Key Observation by the Court:<\/strong><\/span><\/span><\/p>\n \n \n \n <p dir=\"ltr\"><span style=\"font-size:14pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\">Additionally, the bench also referred to the wording of the JDA, which clearly absolved the landowners from vicarious liability. It observed:<\/span><\/span><\/p>\n \n \n \n <p dir=\"ltr\"><span style=\"font-size:14pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\"><em>&ldquo;For the lapse on the part of the developer, the landowners, who are in no way concerned with the construction, cannot be held liable for deficiency in service, particularly when the developer has indemnified them against acts of commission or omission in construction&rdquo;. <\/em><\/span><\/span><\/p>\n \n \n \n <p dir=\"ltr\"><span style=\"font-size:14pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\">Upholding the NCDRC&rsquo;s orders, the judgement absolved the landowners of any liability and dismissed the appeal. <\/span><\/span><\/p>\n \n \n \n <hr \/>\n \n <p dir=\"ltr\"><span style=\"font-size:14pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\"><strong>Case Details: <\/strong><\/span><\/span> <a href=\"https:\/\/api.sci.gov.in\/supremecourt\/2024\/35842\/35842_2024_5_1501_68600_Judgement_20-Feb-2026.pdf\" style=\"text-decoration-line:none\"><span style=\"font-size:14pt\"><span style=\"font-family:&quot;Times New Roman&quot;,serif\"><span style=\"color:#1155cc\">Sriganesh Chandrasekaran &amp; Ors. v. M\/S Unishire Homes LLP &amp; Ors. (Civil Appeal No.s 10527-20528 of 2024)<\/span><\/span><\/span><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Supreme Court has ruled that simply giving a developer permission to enter into sale agreements, carry out construction, and hand over possession of flats does not make a landowner responsible for delays in construction. A bench of Justice PS Narasimha and Justice Alok Aradhe rejected the homebuyer&rsquo;s appeal against the landowner. The Court also [&hellip;]<\/p>\n","protected":false},"author":112,"featured_media":4643,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[9],"tags":[],"class_list":["post-7490","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-supreme-court"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.5 (Yoast SEO v28.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Who Pays For Delayed Flats? Supreme Court Answers \u2014 Not the Landowner - Lawful Talks<\/title>\n<meta name=\"robots\" content=\"noindex, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Who Pays For Delayed Flats? Supreme Court Answers \u2014 Not the Landowner\" \/>\n<meta property=\"og:description\" content=\"The Supreme Court has ruled that simply giving a developer permission to enter into sale agreements, carry out construction, and hand over possession of flats does not make a landowner responsible for delays in construction. A bench of Justice PS Narasimha and Justice Alok Aradhe rejected the homebuyer&rsquo;s appeal against the landowner. 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