Statutory Overrides and Consumer Protection in Real Estate

In Parsvnath Developers Ltd. v. Mohit Khirbat (2026 INSC 170), the Supreme Court upheld an 8% interest award for delayed possession, ruling that statutory consumer protections override one-sided, "standard form" contractual clauses. The Court clarified that offering possession without a valid Occupancy Certificate (OC) is legally insufficient and constitutes a continuing deficiency in service. Furthermore, it affirmed that subsequent purchasers "step into the shoes" of original allottees and are equally entitled to delay compensation. This judgment effectively prevents developers from using restrictive contracts to limit their liability for project mismanagement. For practitioners, it emphasizes that only the procurement of an OC stops the accrual of judicial interest, necessitating a shift toward more balanced builder-buyer agreements.