The Supreme Court Wednesday directed Supertech Ltd. Builders to refund, by Aug 30, the principal amount to 53 allottees of its residential blocks in Noida that were ordered to be demolished by the Allahabad High Court for not complying with building laws.
A bench of Chief Justice R.M. Lodha, Justice Kurian Joseph and Justice Rohinton Fali Nariman said the interest on the principal amount will be paid by Oct 30.
Ordering the payment of principal and the interest amount, Chief Justice Lodha said: "They have not purchased litigation. They have purchased flats. They can't wait."
"It is painful to see 53 allottees suffering," he observed.
"They want refund as proposed by you on April 19. Nothing more, nothing less," the court said making it clear that it would not allow the interest of the allottees to be jeopardized,.
The court staggered the payment between the principal amount and the interest to be paid thereon as senior counsel Ravindra Shrivastava appearing for Supretench Ltd. pleaded difficulty and hardship in arranging the amount and said it could lead to the collapse of the company.
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The court also clarified that payments to be made to 53 allottees were without prejudice to the outcome of the Supertech's appeal against the Allahabad High Court April 11 order.
The Allahabad High Court held that the two residential towers built by Supertech were in contravention of the rules and asked the builders to refund the allottees' money along with 14 percent interest compounded annually.
As Shrivastava tried to resist the court's insistence that Supertech pay the money of allottees seeking refund, the court said: "Shelter is man's ultimate dream in life. If an allottee after giving his entire life earnings do not get flat, it pains."
"They can collapse, you can't," the court said in admonition as Shrivastava pleaded the hardship his client is facing and it will have to borrow to refund the allottees money and this could result in collapse.
"They (allottees) too have hardship. We have to balance the hardships," the court said as it said that it would stagger the payment of principal amount and that of the interest that has been ordered to be compounded annually.