Landmark Judgement: Compensation Ruling in the Case of Hyderabad Apartment Sale

In a significant legal development, the Supreme Court of India has delivered a landmark judgement in the case related to a Hyderabad apartment sale. The ruling on compensation has far-reaching implications for both parties involved. Stay tuned as we delve into the details of this crucial decision that will impact future property transactions in the region.


  • An agreement to sell was executed on 21 March 2011 between the appellant and the respondents for an apartment in Hyderabad.
  • Possession was to be handed over to the respondents by 28 March 2011 as per clause 5.1(iii) of the agreement, with a grace period of three months.
  • Due to a restraining order by the State Waqf Tribunal on 28 March 2011, possession could not be handed over as planned.
  • Eventually, possession was handed over on 28 August 2014 as evidenced by a document between the parties.
  • A sale deed was executed on 11 February 2013, completing the sale transaction for a total consideration of Rs 1,55,50,826.
  • The NCDRC disposed of the consumer complaint on 8 October 2014, directing the appellant to pay compensation for the delay in possession.
  • At the end of the six-month delay period specified in the agreement, compensation at Rs 5 per sq ft became applicable to the appellant.
  • The appellant had a grace period of three months after the injunction was lifted by the Court on 8 May 2012, giving them time until 8 August 2012.
  • The period of six months ended on 8 February 2013 as stipulated in the agreement.
  • The maximum delay allowed was up to six months according to the terms of the agreement.

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  • The agreement did not include provisions for the period thereafter.
  • Clause 8 of the agreement listed force majeure events, with a stipulation in Clause 5.1(iii) extending the possession handover period during such events.
  • The grace period set in the agreement ended on 28 June 2011.
  • The agreement stipulated that 5 11.
  • The stipulation was a key provision of the judgement.
  • It outlined a specific condition that needed to be followed.
  • The stipulation was an important aspect of the agreement.
  • The direction to pay interest at the rate of 18% per annum is considered excessive.
  • The interest rate has to be scaled down.

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  • Appellant to pay compensation in terms of Clause 5.1(iii) at rate of Rs 5 per sq ft for period between 8 Feb 2012 and 8 Feb 2013.
  • For the period between 9 Feb 2013 and 28 Aug 2014, lump sum compensation of Rs 10 lakhs to be paid by the appellant to the respondents.
  • Appellant liable to pay reasonable compensation for the period between 9 Feb 2013 and 28 Aug 2014, in addition to contractual payment for the period between 8 Aug 2012 and 8 Feb 2013.
  • Amount to be paid within one month from receipt of certified copy of this order.

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Case Number: C.A. No.-000155-000155 / 2015

Click here to read/download original judgement

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