Bombay HC Upholds Allottee’s Right, Dismisses Developer’s Appeal In 15-Year Flat Dispute
· Free Press Journal
Mumbai, April 23: After a 15-year wait, following orders from the Bombay High Court, a Peddar Road resident will finally receive her Malad-based flat, for which she had made payment in 2013.
Court upholds tribunal order
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The Bombay High Court has dismissed a second appeal filed by M/s Sai Enterprises, a Kandivali-based firm, thereby upholding an order passed by the Maharashtra Real Estate Appellate Tribunal (MREAT) in November 2025. The tribunal had directed the developer to allot a flat to a homebuyer and pay interest on the amount paid in 2013.
By dismissing the appeal, the High Court has directed the developer to hand over a 775 sq ft flat in the project “Sethia Imperial Avenue” and execute a registered agreement for sale upon receipt of the balance consideration.
“Appellants have been directed to allot a flat admeasuring 775 sq ft and execute a registered Agreement for Sale in favour of the allottee in ‘Sethia Imperial Avenue’ (‘the project’), upon receipt of the balance consideration, and also to pay interest to the allottee on the amount of Rs 12,78,750 paid by the allottee from 26th September 2013 till delivery of possession of the subject flat, at the rate of the State Bank of India’s Marginal Cost of Lending Rate plus 2%,” the order reads.
Dispute dates back to 2010
The dispute dates back to 2010, when the allottee, Sangeeta Punjabi, a Peddar Road resident, was assigned a flat by the original developer, M/s Super Constructions, after paying Rs 12.78 lakh as part consideration. However, the project stalled and was subsequently taken over by M/s Sai Enterprises through a series of development agreements.
Advocates Manish Gala, Minil Shah, and Nilesh Gala appeared on behalf of the allottee, Sangeeta Punjabi.
Developer’s attempt to terminate allotment
In 2019, the new developer sought to terminate the original allotment, citing increased construction costs, and offered a refund with interest. The allottee, however, expressed her willingness to proceed with the purchase and approached the Real Estate Regulatory Authority (RERA).
While RERA initially directed the parties to act as per the development agreement, the Appellate Tribunal later ruled in favour of the allottee, holding the new developer liable to honour the original allotment.
High Court rejects developer’s arguments
The High Court rejected the developer’s arguments that there was no direct contractual relationship with the allottee and that the agreement had become impossible to perform.
The court held that the second developer, M/s Sai Enterprises, had explicitly undertaken responsibility to settle the liabilities of the first developer, M/s Super Constructions, including obligations towards allottees.
“In no circumstances can the allottee’s rights be extinguished by referring to an instrument to which the allottee was never a party. The Appellate Tribunal was thus fully justified in directing the appellant to discharge its statutory and contractual obligations. Thus, no substantial question of law arises for consideration,” the order read.
RERA rights and final ruling
Further, while explaining the rights granted to the allottee under RERA, the order states, “The choice given to the allottee under the proviso to Section 18(1) of the RERA, 2016 cannot be diluted on the premise that the only right of the allottee is to seek a refund of the amount paid along with interest. In substance, the right to seek the apartment agreed to be sold is the primary right of the allottee. Therefore, the submission on behalf of the appellant that the Appellate Tribunal could not have directed the appellant to deliver possession of the apartment to the allottee does not merit acceptance.”
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'Homebuyers Cannot Be Made To Wait Indefinitely For Relief': Bombay HC In RERA Refund CaseThe court also observed that the developer’s claim of “impossibility of performance” was unconvincing and appeared to be a pretext, especially in light of the timing of the sale of unsold flats just before the tribunal’s order.
Finding no substantial question of law, the High Court dismissed the appeal and imposed costs of Rs 1 lakh on the developer, payable to the allottee within four weeks.
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