Section 19: Rights and duties of allottees

Real Estate (Regulation and Development) Act, 2016 • Official Statutory Text & Practice Guide

Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 2016

Legal Commentary & Landmark Judgments: Section 19

Section 19 enumerates the statutory rights and duties of allottees, establishing rights to obtain information, sanctioned plans, stage-wise schedules, possession, and refunds with interest, alongside corresponding duties to make milestone-linked payments.

  • Right to Information & Plans: Allottee has the right to obtain information relating to sanctioned plans, layout plans, and specifications approved by competent authorities.
  • Right to Possession & Refund: Right to claim physical possession according to the agreement, or seek full refund with interest and compensation under Section 18 if developer fails to complete.
  • Duty of Timely Payment: Allottee is statutorily obligated to make milestone payments strictly in accordance with the registered Agreement for Sale.
  • Interest on Allottee Default: Allottee liable to pay interest at the prescribed rate for delayed payments, which must match the exact rate payable by the promoter for construction delays.
Key Landmark Precedents:
  • IREO Grace Realtech Pvt. Ltd. v. Abhishek Khurana, (2021) 3 SCC 241: The Supreme Court held that allottees cannot be compelled to take possession of flats when there is inordinate delay, and their right to refund under Section 19(4) read with Section 18 is an absolute statutory entitlement.
  • DLF Home Developers Ltd. v. Capital Greens Flat Buyers Association, (2021) 5 SCC 537: Reaffirmed that allottees are entitled to delayed possession interest for period of breach, and arbitrary cancellation by builder for disputed interest is illegal under Section 19.
Courtroom Practice & Strategic Litigation Guidance:

When withholding payments due to stalled construction, always issue a formal written protest notice documenting promoter delays to prevent the developer from charging compounded default interest under Section 19(6).