Apartment Buyer’s Agreement

Posted on by Rudrajyoti Nath Ray

The principle laid down in Pioneer Urban Land & Infrastructure Ltd. v. Govindan Raghvan, (2019) 5 SCC 725 has been followed consistently in many cases where terms of an Apartment Buyer’s Agreement were found to be one-sided. The following are instances where terms of an Apartment Buyer’s Agreement were found to be oppressive, constituting an ‘unfair trade practice’:

Wing Commander Arifur Rahman Khan v. DLF Southern Homes Private Limited, (2020) 16 SCC 512; NBCC (India) Ltd. v. Shri Ram Trivedi, (2021) 5 SCC 273; DLF Home Developers Ltd. v. Capital Greens Flat Buyers Association, (2021) 5 SCC 537; IREO Grace Realtech Pvt. Ltd. v. Abhishek Khanna, (2021) 3 SCC 241.

– Hon’ble Justice Pamidighantam Sri Narasimha, Experion Developers Pvt. Ltd. v. Sushma Ashok Shiroor, [Civil Appeal No. 6044 of 2019].

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Complainants had booked an Apartment with Appellant in ‘Godrej Summit’ situated at Sector 104, Gurgaon, Haryana.

Court in Pioneer Urban Land & Infrastructure Limited v. Govindan Raghavan, (2019) 5 SCC 725 was considering similar clauses. Pioneer Urban was followed in Wing Commander Arifur Rahman Khan v. DLF Southern Homes Private Limited, (2020) 16 SCC 512 and Ireo Grace Realtech Pvt. Ltd. v. Abhishek Khanna, (2021) 3 SCC 241. When Pioneer Urban, Wing Commander Arifur and Ireo Grace were decided, they were decided based on provisions of The Consumer Protection Act, 1986. Court has found, one-sided Agreements, as in present case, would be covered by definition of ‘unfair trade practice’.

– Hon’ble Justice B.R. Gavai, Godrej Projects Development Limited v. Anil Karlekar, [Civil Appeal No 3334 of 2023] decided on 03.02.2025.  

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We may as well refer to Godrej Projects Development Ltd. v. Anil Karlekar, 2025 SCC OnLine SC 222 wherein Court examined one-sided and unconscionable forfeiture clauses. It was held, a forfeiture clause, if found to be unfair and unreasonable, cannot be enforced by this Court.

– Hon’ble Justice J.B. Pardiwala, K.R. Suresh v. R. Poornima, [Civil Appeal No. 5822 of 2025] decided on 02.05.2025.

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