#novation

West Bengal State Consumer Disputes Redressal Commission rules that unjustified delay in handing over flat possession constitutes a deficiency in service under the Consumer Protection Act. Buyers are entitled to a full refund, 7% interest from the default date, and compensation for mental agony, setting a precedent for real estate consumer disputes.

Karnataka HC rules that an arbitration clause in a partnership deed only covers disputes arising after the deed’s effective date. Claims under a novated settlement deed lacking an arbitration clause fall outside the arbitrator’s jurisdiction, reinforcing the need for explicit dispute resolution terms in post-novation agreements.