Panchkula: Limitation act doesn’t apply to RERA plaintiffs, says Appellate tribunal

The Appellate tribunal in Panchkula has ruled that the limitation act does not prevent RERA plaintiffs from seeking compensation for delayed flat delivery, even after a conveyance deed is executed and possession is taken.

The limitation act, a statutory provision intended to bar stale claims, typically bars legal actions after a prescribed period. In this case, the tribunal examined whether its provisions applied to homebuyers who had already executed sale agreements and taken possession of their units.

According to the tribunal, the right to claim compensation under the Real Estate (Regulation and Development) Act remains intact regardless of the execution of the conveyance deed. The court held that taking possession does not nullify the homebuyer’s entitlement to redress for delays that occurred before possession was handed over.

This decision is expected to affect numerous homebuyers in Panchkula who have been waiting for their flats beyond the promised timelines. It underscores that RERA’s grievance redressal mechanism continues to be available even after the legal formalities of ownership transfer are completed.

The limitation act is commonly invoked by developers to contest delayed possession claims, arguing that the clock starts ticking from the date of agreement or possession. The tribunal’s interpretation narrows that scope, signalling a willingness to protect homebuyers’ interests under RERA.

The order may be subject to further judicial review, but for now it reinforces the principle that delayed delivery does not automatically forfeit a homebuyer’s right to compensation, a point that resonates with many aggrieved buyers across the region.

Source: source