Lall’s case was that the last instalment was payable only after DLF informed him that it had received the occupancy certificate from the Delhi Development Authority.
He claimed that such intimation was received only in 2011, though DLF had obtained the occupancy certificate in 2009.
The arbitrator held that DLF was under an obligation to inform Lall about the receipt of the occupancy certificate.
However, the arbitrator refused to award damages beyond January 12, 2011, holding that both parties had contributed to the delay thereafter.
The single judge also set aside the direction requiring Lall to pay interest on ground rent from February 12, 2011.
The dispute arose from Retail/ Commercial Office Space Buyer’s Agreements executed between the parties on May 31, 2006.
Lall’s case was that the last instalment was payable only after DLF informed him that it had received the occupancy certificate from the Delhi Development Authority. He claimed that such intimation was received only in 2011, though DLF had obtained the occupancy certificate in 2009.
On the other hand, DLF countered that possession could not be handed over because Lall had defaulted in the payment of the last instalment and other charges.
The matter went to arbitration. The arbitrator held that DLF was under an obligation to inform Lall about the receipt of the occupancy certificate. Since DLF failed to prove delivery of such intimation, the arbitrator awarded damages to Lall at ₹25 per square foot per month from June 10, 2009 to January 12, 2011.
However, the arbitrator refused to award damages beyond January 12, 2011, holding that both parties had contributed to the delay thereafter.
A single judge Bench of the High Court later modified the award by directing DLF to pay damages at ₹25 per square foot per month till possession was actually handed over. The single judge also set aside the direction requiring Lall to pay interest on ground rent from February 12, 2011.
