Plot buyer on ‘as is where is’ basis cannot complain about lack of amenities: Apex Court

A winner of a bid for a plot land sold on an as-is-where-is basis cannot turn around and say that he would not pay interest, in terms of the terms and conditions of the bid, for non-payment of the remaining installments of the bid amount on the ground that the seller has not provided the basic amenities like parking, lighting, etc.

The Apex Court in Punjab Urban Planning and Dev. Authority and Others v. Raghu Nath Gupta and Others went on to say that the essence of an as is where is sale is the one buying a property is presumed to be doing so with his eyes and ears open, and cannot have any grievance later on as to lack of amenities in and around the land he has successfully bid for.

In the event, it reversed the judgment of the High Court which had earlier held that the appellant had no right to demand interest on delayed payment inasmuch as it was derelict in not providing the basic amenities. The buyer was asked by the Supreme Court to pay interest at the rate of 2% per month for the delayed payments of instalments.

(The author is a New Delhi-based chartered accountant)

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