Punjab and Haryana HC Says Possession Does Not Erase Buyers' Right to Delay Interest

What the court ruled

The Punjab and Haryana High Court held on October 8, 2026 that a homebuyer's right to claim interest for delayed possession under Section 18(1) of RERA survives possession and conveyance. The court said a promoter's liability under this provision is mandatory. It cannot be waived or reduced merely by contractual terms, by acceptance of possession, or by execution of a conveyance deed.

The court rejected the argument that conveyance ended the contractual relationship and so stopped buyers from seeking delayed-possession interest from the Haryana Real Estate Regulatory Authority (HRERA).

The judgment also distinguished two provisions of the Act. Section 19(8) expressly allows an allottee's interest liability to be reduced by mutual agreement. Section 18(1) has no equivalent clause that lets a promoter's liability be waived or reduced by agreement.

The case and the numbers

The ruling arose from 47 appeals filed by Emaar India against homebuyers in Gurgaon Greens, Sector 102, Gurugram. The reported dispute concerns delayed possession and interest claims.

The court used one buyer's timeline as an example. The buyer signed an agreement in April 2013, with possession due by November 16, 2016. The occupation certificate was obtained in May 2019, possession was handed over in December 2019, and the conveyance deed was executed in February 2020. The buyer approached HRERA in September 2022 and was awarded 11% interest for the delay.

The court also noted that Emaar had paid about ₹5–6 lakh in some cases, against claimed liabilities exceeding ₹40 lakh. Without a categorical written waiver or a full-and-final settlement, the court held that such payments alone did not extinguish the statutory liability.

The court left open the possibility that a buyer could voluntarily and knowingly settle an interest claim for a lower amount.

How long a buyer has to complain

RERA sets no specific limitation period for these complaints. The court said buyers cannot approach the authority indefinitely. Where possession and conveyance have taken place, three years from possession would ordinarily be a reasonable period to file a complaint under Section 31. The court also said there is no rigid formula that applies to every case.

When calculating that three-year period, the court excluded the Covid period from March 15, 2020 to February 28, 2022.

The appeals were dismissed on the buyers' substantive right to claim interest. They were allowed on limitation. The individual complaints were remanded to HRERA to assess whether each was filed within a reasonable period.

What it changes for buyers, developers and the market

• Buyers: Taking possession or signing a conveyance deed does not, on this ruling, end the right to seek delayed-possession interest. Buyers who have already taken possession may still have a claim, subject to the timing test.
• Developers: Partial payments or settlement receipts are not, on their own, a waiver of statutory interest liability. Only a clear written waiver or full-and-final settlement is treated as ending the claim.
• Timing: The right is not unlimited. Three years from possession is the ordinary reference point in cases where possession and conveyance have occurred, with the Covid period excluded.

Advocate Jagdeep Kumar, who appeared for the homebuyers, said the ruling would encourage buyers to seek delayed-possession compensation even after taking possession and executing conveyance deeds. The ruling does not establish that every complaint is timely or that every buyer is owed a particular amount. HRERA must decide the remanded complaints one by one.

Separate rulings on the same question

Two other reported matters involve the same issue. On September 23, 2026, the Lucknow bench of the Allahabad High Court reportedly held, in a separate case, that accepting possession does not by itself extinguish a buyer's statutory right to claim delayed-possession interest. That dispute concerned Antriksh Developers and Promoters' Antriksh Golf View project in Sector 78, Noida. Justice Prashant Kumar dismissed the developer's appeal.

ETRealty's October 8, 2026 newsletter also listed a separate Haryana RERA matter involving Tata Primanti buyers' claims after conveyance-deed execution. That is a distinct case from the Punjab and Haryana High Court ruling.

What happens next

The parties were directed to appear before HRERA on October 16, 2026. HRERA was asked to endeavour to dispose of the remanded matters within four months. The reports do not give a calendar deadline for completion, and they do not say how many of the 47 appeals' underlying complaints will be decided in favour of buyers.