Builders Can’t Use Unfair Contracts to Deny Buyer Compensation: Supreme Court

The Supreme Court ruled that builders cannot use one-sided clauses in flat buyer agreements to deny or limit compensation to homebuyers when possession is delayed.

In a case involving Parsvnath Developers, buyers paid almost the full price, but the builder failed to complete construction on time and did not obtain the required Occupancy Certificate.

The National Consumer Disputes Redressal Commission (NCDRC) had ordered the builder to finish the project and pay compensation and interest.

The Supreme Court while upholding the same stated that consumer rights and statutory protections override unfair contract terms, and that delayed delivery is a deficiency in service.

[Parsvnath Developers Ltd & Ors. v. Mohit Khirbat & Ors.]