65. (All. H.C.)
(Reserved on: 16.07.2026 Decided on: 31.07.2026)
***
Condonation of delay -- Courts must not condone gross negligence, deliberate inaction, or casual indifference.
***
RERA Act -- Interest under Section 18 is compensatory in character and therefore, it cannot operate retrospectively -- Section 2(za) of the Act, 2016, deployed for levy of interest for the delay which occurred prior to the said Act, cannot be said to be illegal or arbitrary.
***
RERA Act – S. 44(4) -- Communication of orders -- Where the email was sent by the Tribunal to the parties containing the copy of dismissal order, and each and every case is updated on the portal of the Tribunal, it cannot be said that the appellant was not aware of the case.
***
Frivolous litigation -- Appellant has continued to initiate repetitive proceedings, thereby delaying the enforcement of the respondent's lawful entitlement -- Exemplary cost could be imposed.
***
A. Limitation Act, 1963 (36 of 1963), Section 5 -- Condonation of delay -- Sufficient cause -- There was a delay of more than 720 days in filing the restoration application -- Burden to prove 'sufficient cause' lies on the applicant, who is seeking condonation of delay and he has to prove sufficient cause that the reasons for not approaching the court are real, bonafide and free of negligence -- Expression 'sufficient cause' cannot be liberally interpreted, if negligence, inaction or lack of bona fides is attributed to the party -- Appellant failed to prove that they were reasonably diligent in prosecuting the matter and this vital test for condoning the delay is not satisfied -- Thus, the delay caused in filing the restoration application by the appellant is miserably barred by limitation and the delay at belated stage cannot be condoned.
(Para 50, 57-62)
B. Real Estate (Regulation and Development) Act, 2016 (16 of 2016), Sections 2(za), 18 -- Builder-buyer agreement -- One-sided clauses -- Retroactive application -- Any term of one-sided agreement will not be final binding -- Any agreement or settlement of one-sided cannot be made a condition precedent by the promoter to handover possession of the unit to the allottee and the settlement is void ab initio -- Clause 19 of the builder-buyer agreement clearly stipulates that in case of default by the allottee, he would be charged 24% interest -- Interest as provided under Section 18 of the Act, 2016, is compensatory in character and therefore, it cannot operate retrospectively -- Levy of interest at the rate of 24% for delay in handing over possession from the promised date of possession cannot be said to be illegal or arbitrary -- Promoter cannot escape from responsibility/liability, the contractual terms will not have any overriding effect.
(Para 41, 74-78)
C. Real Estate (Regulation and Development) Act, 2016 (16 of 2016), Section 44(4) -- Appellate Tribunal -- Communication of orders -- A plain reading of Section 44(4) of the RERA Act, 2016, clearly shows that it is mandatory for the Appellate Tribunal to send a copy of every order to the parties -- Email was sent by the Tribunal to the parties containing the copy of dismissal order and the receipt of the same has been acknowledged during the course of arguments by the learned counsel for the respondents before the Tribunal -- Each and every case is updated on the portal of the Tribunal and the date fixed in every matter and case status is uploaded on the portal of the Tribunal -- It cannot be said that the appellant was not aware of the case -- Thus, it is clear that the Tribunal has complied with the provisions of Section 44(4) of RERA Act, 2016.
(Paras 68, 70, 71)
D. Frivolous litigation -- Exemplary costs -- Despite the matter having attained finality at various stages, the appellant has continued to initiate repetitive proceedings, thereby delaying the enforcement of the respondent's lawful entitlement under the orders passed by the competent authorities and this Court -- Even after more than 13 years from the date of booking, the appellant has neither completed the project nor obtained the requisite Occupancy Certificate -- It is a fit case, where exemplary cost could be imposed as the respondent being a lady had been harassed for the last 13 years and had to run from pillar to post and also face a multiple litigation, for no fault of her own -- Accordingly, a cost of Rs.2,50,000/- is imposed upon the appellant to be paid to the respondent within a period of four weeks for filing various frivolous case.
(Para 83-92)