{"id":256879,"date":"2021-11-09T15:00:57","date_gmt":"2021-11-09T09:30:57","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=256879"},"modified":"2021-12-10T17:01:59","modified_gmt":"2021-12-10T11:31:59","slug":"law-on-force-majeure","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2021\/11\/09\/law-on-force-majeure\/","title":{"rendered":"Law on Force Majeure | Builder taking shelter of \u201cForce Majeure\u201d clause for delay in handing over possession: Justified or not? Read what NCDRC says"},"content":{"rendered":"<p style=\"text-align: justify;\"><strong>National Consumer Disputes Redressal Commission (NCDRC): <\/strong>Expressing that the builder cannot take shelter of \u201cForce Majeure\u201d while delay in handing over possession Coram of C. Viswanath (Presiding Member) and Ram Surat Ram Maurya (Member) directed for a refund of buyers\u2019 amount along with interest.<\/p>\n<h4 style=\"text-align: justify;\"><span style=\"color: #008000;\">Facts in a Nutshell<\/span><\/h4>\n<p style=\"text-align: justify;\">Complainants had booked a unit in OP\u2019s project and paid a booking amount as well. Later they were allotted a unit vide an allotment letter.<\/p>\n<p style=\"text-align: justify;\">Subsequently, an Apartment Buyer\u2019s Agreement was executed, wherein possession of the unit was promised within 39 months from the date of excavation, excluding an additional grace period of 6 months to complete the project.<\/p>\n<h4 style=\"text-align: justify;\"><span style=\"color: #008000;\">Grievance<\/span><\/h4>\n<p style=\"text-align: justify;\">The grievance of the Complainants was that the OP, despite receiving more than 90% of the total consideration, failed to hand over possession of the Unit, within the promised time period and even possession in the near future seemed unlikely.<\/p>\n<h4 style=\"text-align: justify;\"><span style=\"color: #008000;\">Contentions of the OP<\/span><\/h4>\n<p style=\"text-align: justify;\">OP while contending that the possession could not be delivered in time because some of the customers did not make timely payments also added that there was a shortage of labour due to construction of Commonwealth Games Village, shortage of water, dispute with construction agencies, delays in obtaining licenses, approvals, etc. Further, it was added that as per the Agreement, in case of delay caused due to \u201cForce Majeure\u201d events, the OP would be entitled to an extension of time, without incurring any liability.<\/p>\n<p style=\"text-align: justify;\">Though, the Opposite Party failed to prove that there was an unforeseen and unexpected event that prevented the completion of the Project within the stipulated time period.<\/p>\n<h4 style=\"text-align: justify;\"><span style=\"color: #008000;\">Analysis, Law and Decision<\/span><\/h4>\n<p style=\"text-align: justify;\">Commission expressed that the OP cannot take shelter of the \u201cForce Majeure\u201d Clause and the reasons cited by the OP for the delay of the project, appeared to be delaying tactics veiled as \u201cForce Majeure\u201d conditions and seemed to be an attempt to wriggle out of its contractual obligations.<\/p>\n<p style=\"text-align: justify;\">It was noted that even after receiving the substantial amount OP failed to fulfil its contractual obligation of delivering possession of the Unit to the complainant within the time stipulated.<\/p>\n<h4 style=\"text-align: justify;\"><span style=\"color: #008000;\">Conclusion<\/span><\/h4>\n<p style=\"text-align: justify;\">A person cannot be made to wait indefinitely for the possession of the flats allotted to him\/her. The Complainants are, therefore, entitled to seek the refund of the amount paid along with compensation. [Manoj Kawatra v. Pioneer Urban Land &amp; Infrastructure, <a href=\"http:\/\/www.scconline.com\/DocumentLink\/9528Zsd5\"><b>2021 SCC OnLine NCDRC 325<\/b><\/a>, decided on 1-11-2021]<\/p>\n<hr \/>\n<p style=\"text-align: justify;\"><strong>Advocates before the Commission:<\/strong><\/p>\n<p style=\"text-align: justify;\">For the Complainant: Aditya Parolia, Advocate<\/p>\n<p style=\"text-align: justify;\">For the OP: T.V.S. Raghavendra Sreyas, Advocate<\/p>\n","protected":false},"excerpt":{"rendered":"<p>National Consumer Disputes Redressal Commission (NCDRC): Expressing that the builder cannot take shelter of \u201cForce Majeure\u201d while delay in handing over possession <\/p>\n","protected":false},"author":8808,"featured_media":199533,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,11],"tags":[8671,39058,14601,11241,3174,44464,15811,29785,42834,42768],"class_list":["post-256879","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-casebriefs","category-tribunals_commissions_regulatorybodies","tag-builder","tag-buyer","tag-consumer","tag-consumer-protection","tag-contract","tag-delay-in-possession","tag-force-majeure","tag-law","tag-legal-news","tag-legal-updates"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.4 (Yoast SEO v26.4) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Law on Force Majeure | Builder taking shelter of \u201cForce Majeure\u201d clause for delay in handing over possession: Justified or not? Read what NCDRC says | SCC Times<\/title>\n<meta name=\"description\" content=\"Law on Force Majeure\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.scconline.com\/blog\/post\/2021\/11\/09\/law-on-force-majeure\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Law on Force Majeure | Builder taking shelter of \u201cForce Majeure\u201d clause for delay in handing over possession: Justified or not? 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NCDRC slams with compensation for delay in delivery of possession","author":"Ridhi","date":"March 15, 2023","format":false,"excerpt":"In another case of delayed possession of flats by builder in Gurugram, NCDRC directed the builder to compensate the homebuyers for delay and differences of brochure and builder homebuyer agreement.","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"National Consumer Disputes Redressal Commission","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/03\/MicrosoftTeams-image-744.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/03\/MicrosoftTeams-image-744.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/03\/MicrosoftTeams-image-744.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/03\/MicrosoftTeams-image-744.png?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":232897,"url":"https:\/\/www.scconline.com\/blog\/post\/2020\/07\/27\/ncdrc-possession-of-apartments-due-in-2016-not-handed-over-till-date-developers-directed-to-refund-amount-at-an-interest-of-9-per-annum\/","url_meta":{"origin":256879,"position":3},"title":"NCDRC | Possession of apartments due in 2016, not handed over till date: Developers directed to refund amount at an interest of 9% per annum","author":"Bhumika Indulia","date":"July 27, 2020","format":false,"excerpt":"National Consumer Disputes Redressal Commission (NCDRC):\u00a0Prem Narain, Presiding Member, has directed the developers of \"Greenopolis\" to refund homebuyers their amount deposited at the interest rate of 9% p.a. and in a few complaints the bench has asked for the possession to be handed over by 30-09-2020 with the occupancy certificate\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"National Consumer Disputes Redressal Commission","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":366944,"url":"https:\/\/www.scconline.com\/blog\/post\/2025\/11\/17\/supreme-court-directs-bengal-peerless-housing-to-handover-possession-of-flat-pending\/","url_meta":{"origin":256879,"position":4},"title":"No &#8216;Force Majeure&#8217;: SC sets aside NCDRC order, directs Bengal Peerless Housing to hand over flats in 2 weeks","author":"Sucheta","date":"November 17, 2025","format":false,"excerpt":"The Court directed the Housing Company to handover possession to the respondents within 2 weeks and upheld NCDRC order to award simple interest @6% from 07-09-2015 to the date of offer of possession or date of receipt of valid partial OC, whichever is later.","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"handover possession of flat","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/11\/handover-possession-of-flat.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/11\/handover-possession-of-flat.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/11\/handover-possession-of-flat.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/11\/handover-possession-of-flat.webp?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":224458,"url":"https:\/\/www.scconline.com\/blog\/post\/2020\/01\/23\/ncdrc-paltry-compensation-not-an-adequate-redressal-to-allottee-as-it-creates-no-pressure-created-on-developer-to-complete-construction-on-time\/","url_meta":{"origin":256879,"position":5},"title":"NCDRC | Paltry compensation not an adequate redressal to allottee as it creates no pressure created on Developer to complete construction on time\u00a0","author":"Bhumika Indulia","date":"January 23, 2020","format":false,"excerpt":"National Consumer Disputes Redressal Commission (NCDRC):\u00a0Justice V.K. 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