By The Law Suits | Mumbai RERA and Real Estate Litigation
The Bombay High Court has delivered an important ruling strengthening the rights of homebuyers facing prolonged delay in possession. In a group of appeals filed by Runwal Constructions, the Court upheld the right of allottees to receive interest for delayed possession under Section 18 of the Real Estate (Regulation and Development) Act, 2016 (“RERA”).
The Court made it clear that a developer cannot rely on a broad force majeure clause, pending litigation, approval-related difficulties, or a purchaser’s waiver clause in the agreement to indefinitely avoid liability for delay.
The judgment was delivered by the Bombay High Court on 8 June 2026 in Runwal Constructions v. Bharat Shah and connected matters.
Background: Flats Booked Years Ago, Possession Still Pending
The dispute arose from the Runwal Infinity / Runwal Sanctuary project at Nahur, Mulund, Mumbai. The concerned purchasers booked their flats between 2005 and 2007. Their agreements contemplated possession broadly between 2008 and 2010.
Several purchasers had paid a substantial part of the agreed sale consideration, while one purchaser had paid the entire flat price. Despite this, possession was not handed over even by 2026.
The homebuyers approached MahaRERA seeking relief for the delay. Although the Authority initially directed the developer to expedite construction, the purchasers challenged the limited relief before the appellate forum.
Earlier RERA Appellate Order
The designated RERA appellate authority directed the promoter to pay interest at 10.05% per annum from 1 February 2014 until actual possession. It also directed completion of Buildings B1 and B2 within 18 months, with consequences under Section 7 of RERA in case of non-compliance.
The buyers accepted this relief. The developer challenged the appellate order before the Bombay High Court.
Builder’s Force Majeure Defence
The developer relied on clauses in the agreements referring to forest-related disputes, court proceedings, and restrictions on construction. It argued that these circumstances were beyond its control and therefore automatically extended the possession date.
The agreement also contained a clause under which purchasers were stated to have waived their right to claim interest or compensation for delay arising from such litigation.
The developer further argued that the RERA appellate authority could not revise or fix a date for calculating delay interest because doing so would amount to rewriting the agreement.
High Court: Statutory Rights Under RERA Cannot Be Contracted Away
The High Court rejected the developer’s case.
It held that under Section 18 of RERA, an allottee who chooses to remain in the project is entitled to interest for every month of delay until actual possession is delivered. This right is statutory and cannot be defeated by contractual terms, including a force majeure clause or a waiver clause in the agreement for sale.
The Court relied on the principle affirmed by the Supreme Court in Newtech Promoters and Developers Pvt. Ltd. v. State of Uttar Pradesh, namely that an allottee’s right to interest for delayed possession is unqualified where the promoter fails to fulfil its obligation under the agreement.
The Court also noted that the RERA appellate authority had taken 1 February 2014 as the starting date for interest, even though the original promised possession dates ranged from 2008 to 2010. This extension was already favourable to the developer.
Technical Challenge to RERA Appellate Forum Also Rejected
The developer also questioned the jurisdiction and composition of the temporary RERA appellate forum, namely the Maharashtra Revenue Tribunal. The High Court rejected these objections and held that the tribunal was validly designated to hear RERA appeals at the relevant time.
Key Legal Takeaway for Homebuyers
This ruling reinforces an important principle for homebuyers:
A builder cannot use a force majeure clause, pending litigation, approval issues, or a waiver clause to escape statutory liability for an open-ended delay in handing over possession.
Where the buyer elects to continue in the project rather than seek refund, Section 18 of RERA protects the buyer’s right to interest for the period of delay until actual possession is delivered.
Each matter will still depend on its facts, the terms of the agreement, the nature of the delay, and the evidence available. However, this judgment is a strong authority against attempts to use one-sided contractual clauses to dilute statutory homebuyer protections.
Final Result
The Bombay High Court dismissed the developer’s appeals. The order directing payment of interest at 10.05% per annum from 1 February 2014 until actual possession was upheld.
homebuyers, housing societies, and real estate stakeholders in matters involving delayed possession, MahaRERA complaints, RERA appeals, consumer disputes, builder compensation claims, redevelopment disputes, and execution of RERA orders. Take Professional Advice from your CA and Advocatess
Published in Public Interest
About The Law Suits
The Law Suits is a Mumbai-based law firm specialising in RERA litigation, Consumer Protection, Real Estate disputes, Cooperative Housing Society matters, Redevelopment, SARFAESI, DRT, NCLT, and Constitutional litigation. We regularly represent homebuyers, housing societies, and property owners before MahaRERA, Consumer Commissions, High Courts, and other judicial forums.
The content published under The Law Suits Landmark Judgment Series is intended for legal education and public awareness. It should not be construed as legal advice or a substitute for professional legal consultation. Readers are encouraged to obtain independent legal advice appropriate to their individual circumstances.
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