Allahabad High Court Says Accepting Delayed Flat Does Not End Buyer’s Right to Claim Interest
Noida, Uttar Pradesh | September 24, 2026: Homebuyers who accept a delayed flat can still seek statutory interest for the period of delay, the Allahabad High Court has ruled in a case involving the Antriksh Golf View project in Sector 78, Noida.
The court also held that the Real Estate (Regulation and Development) Act, or RERA, does not prescribe a specific limitation period for claiming interest arising from delayed possession. The ruling could have wider relevance for Noida homebuyers who accepted possession after significant delays but later sought compensation or interest from developers.
What the Allahabad High Court Ruled
The Lucknow bench of the Allahabad High Court dismissed an appeal filed by Antriksh Developers and Promoters Pvt Ltd against an order directing it to pay interest to a homebuyer.
The court made two important observations:
- Accepting possession after a delay does not by itself eliminate a buyer's statutory right to claim interest.
- RERA does not prescribe a specific limitation period for a claim seeking interest for delayed possession.
The case concerned buyer Shyam Sunder Agrawal, who had booked a flat in 2010.
Possession Was Due in 2012 but Offered in 2017
According to the court order, possession of the flat was contractually due by November 2012.
The developer offered possession only in May 2017. The court also noted that the offer was made without the occupancy certificate and other necessary documents.
The RERA Appellate Tribunal subsequently directed the developer to pay interest on the amount deposited by the buyer for the period from December 2012 to May 2017.
The interest was to be calculated at one percentage point above the Marginal Cost of Fund Based Lending Rate (MCLR).
Developer Relied on NGT Construction Restrictions
Antriksh Developers challenged the interest order, arguing that construction and occupancy approvals had been affected by restrictions imposed by the National Green Tribunal (NGT) in connection with the Okhla Bird Sanctuary.
The developer relied on the restriction as a reason for the delay and sought the benefit of the period during which the project was allegedly affected.
The High Court, however, did not accept the argument as sufficient to remove the entire delay period.
Why the Court Rejected the Delay Defence
The court pointed to the developer's own position that the project had been completed in 2014 and that an application for an occupancy certificate had also been made that year.
The bench observed that the developer could not simultaneously maintain that the project had been completed while claiming that the same completion had been prevented by the NGT restriction.
The court also noted a critical timeline issue.
The contractual deadline for possession was November 2012, while the NGT restriction relied upon by the developer came into effect in August 2013.
Therefore, according to the court, the developer's default had already occurred before the NGT restriction came into force.
NGT Zero Period Cannot Erase Earlier Delay
The court also considered the concept of a “zero period” recognised by the Supreme Court in relation to delays caused by regulatory restrictions.
The High Court observed that such benefit could apply only to the period during which the project was actually affected by the relevant restraint.
It could not eliminate a delay that had already occurred before the restriction came into force.
For homebuyers, this distinction is important because developers may rely on regulatory bans, environmental restrictions or other external events when explaining possession delays. The court's reasoning indicates that the timing and actual impact of such restrictions must be examined against the contractual possession deadline.
What This Means for Noida Homebuyers
The ruling provides an important point for buyers who accepted possession after a delayed delivery but did not receive interest for the entire period of delay.
Acceptance of the flat does not automatically mean that the buyer has surrendered the statutory claim for delay-related interest.
Homebuyers dealing with delayed possession should preserve:
- The original allotment or builder-buyer agreement
- Contractual possession deadline
- Payment records
- Possession offer letter
- Occupancy certificate and completion documents
- Correspondence with the developer
- RERA orders or complaints
- Records of any regulatory restrictions cited by the developer
The exact entitlement will depend on the facts, applicable law and orders in the individual case.
What Happens Next
The Allahabad High Court has upheld the direction requiring Antriksh Developers to pay interest for the delayed possession period, and the developer's appeal has been dismissed.
The ruling does not mean every delayed-possession case will automatically result in the same interest calculation. The contractual terms, actual period of delay, applicable RERA provisions and any legally recognised exclusion period can differ from case to case.
For Noida homebuyers, however, the judgment reinforces that taking possession of a delayed property does not, by itself, close the door on a statutory interest claim for the period of delay.