Pay First, Claim Separately: What the ALN Arambh Tribunal Ruling Means for Bengaluru Buyers

A Bengaluru buyer signed an agreement on 28 September 2023 for a two-bedroom flat at ALN Arambh priced at Rs 33.50 lakh, with possession due in April 2024 plus a six-month grace period. At inspection she found a low balcony railing, missing false ceilings and fire sprinklers, and only one key. She asked the regulator for amenity losses, delay interest and rent. On 29 September 2026, the Karnataka Real Estate Appellate Tribunal confirmed an order that she first pay Rs 2.45 lakh still outstanding.

The short answer. As reported by LiveLaw, the Tribunal dismissed Geethanjali M.'s appeal and upheld K-RERA's 18 July 2025 order directing her to pay Rs 2.45 lakh within 30 days, and ALN Buildtech to execute the sale deed and hand over possession within 15 days of payment after fixing the balcony railing height and other major safety deviations. Claims needing an inquiry, it said, belong before the adjudicating officer, and common-amenity grievances go through the association. The trade-off: the buyer got her flat registered and the safety fixes ordered, but her claims for about Rs 10.76 lakh in amenities, Rs 3.62 lakh in delay interest and Rs 80,449 in rent were not awarded in this appeal.

What did the Karnataka Tribunal decide in the ALN Arambh case?

It confirmed the regulator's order in full. The bench of Chairperson Justice J.M. Khazi and Judicial Member Santhosh Kumar Shetty N. dismissed Appeal No. (K-REAT) 114 of 2025 on 29 September 2026, LiveLaw reports.

K-RERA's order had partly allowed the buyer's complaint. It directed her to pay the outstanding Rs 2.45 lakh within 30 days, directed ALN Buildtech to execute the sale deed and hand over possession within 15 days of payment, required the developer to fix the balcony railing height and other major safety deviations before handover, and left common-amenity grievances to the apartment owners' association or another competent forum.

The buyer's complaints were specific. LiveLaw reports that at inspection she found a low balcony railing height and missing false ceilings, teak wood door frames, fire sprinklers, power backup and other promised fixtures, and that only one key was provided while the remaining keys and the occupancy certificate were withheld. She appeared before the Tribunal in person and argued that the Authority had wrongly made possession conditional on payment.

By the time the appeal was decided, the dispute had partly resolved itself. LiveLaw reports that on 13 July 2026 the buyer said she was willing to pay and complete registration, and on 27 July 2026 the developer told the Tribunal the sale deed had been executed and produced a copy.

Why were the buyer's compensation claims not decided in the appeal?

Because the Tribunal said they needed an inquiry by a different officer. LiveLaw quotes the order: "some of the relief sought by the Allottee require an enquiry by the Adjudicating Officer". The Tribunal said the Authority can order refunds and delay interest, but compensation claims requiring inquiry fall under Sections 71 and 72 of the Act.

Section 71(1) of the Real Estate (Regulation and Development) Act, 2016 provides for the appointment of an adjudicating officer, a judicial officer who is or has been a District Judge, for adjudging compensation under Sections 12, 14, 18 and 19. Section 72 lists the factors that officer weighs, including the amount of disproportionate gain or unfair advantage made as a result of the default, the amount of loss caused, and the repetitive nature of the default.

For buyers, the practical point is to match each claim to its forum at the start. Our explainer on choosing between the adjudicating officer, consumer forum and civil court sets out how that choice works.

Why did the buyer still have to pay before getting her flat?

Because the Act makes payment on schedule a buyer's duty too. Section 19(6) says every allottee who has entered into an agreement for sale shall be responsible to make necessary payments in the manner and within the time specified in the agreement, and to pay their share of registration charges, municipal taxes, water and electricity charges, maintenance charges and other charges.

Section 19(7) adds that the allottee shall be liable to pay interest, at the prescribed rate, for any delay in payment of those amounts. Section 19(8) says these obligations and the interest liability may be reduced when mutually agreed between the promoter and the allottee.

The numbers in this case are worth noticing. LiveLaw reports that the final instalment of 3 percent, Rs 1,00,500, was payable on registration or possession, whichever came first, while the amount the buyer still owed was Rs 2.45 lakh, more than that last instalment. The report does not break the Rs 2.45 lakh down. Before you dispute a final demand, reconcile it line by line against your agreement's payment schedule so you know which part is the contractual balance and which part, if any, is something else.

The ALN Arambh order shows how this plays out: the regulator sequenced the obligations, with payment first, then sale deed and possession, with safety fixes required before handover. Our guide on the interest rate for late payment and delay explains how the two sides' interest obligations compare.

Where do common-area complaints go?

Through the association, in this case. The Tribunal said "the Authority has rightly directed the Allottee to file necessary complaint through the Association", according to LiveLaw. The buyer had argued that the Authority wrongly treated individual flat defects as common-amenity issues.

The Act expects buyers to organise. Section 19(9) says every allottee shall participate towards the formation of an association or society or cooperative society of the allottees. Once it exists, the association is the natural complainant for problems that affect everyone, such as power backup or shared fire systems.

The distinction between a flat-level defect and a common-area issue matters. If a defect is inside your unit, such as a missing door frame or false ceiling, describe it that way in your complaint and support it with photographs and the agreed specification. If it affects the building as a whole, bring it to the association so a single complaint covers all owners.

What should Bengaluru buyers do before and at possession?

Separate your money obligations from your claims, and document both. The checklist below follows the lessons of the ALN Arambh case.

1. Reconcile what you owe under the agreement, including the final instalment, and get the developer's statement in writing.
2. Inspect the flat against the agreed specifications and list every flat-level defect with photographs.
3. Separate common-area issues, such as power backup or fire systems, and share them with your association.
4. Ask for all keys and a copy of the occupancy certificate at inspection, and record any refusal in writing.
5. File claims for refund or delay interest before the Authority, and compensation claims needing inquiry before the adjudicating officer.
6. If you dispute an amount, say so in writing, but plan to pay undisputed dues on time to avoid interest.
7. Keep a dated file of demand letters, receipts and correspondence for any later complaint or appeal.

Two more duties come with possession. Section 19(10) says every allottee shall take physical possession within two months of the occupancy certificate issued for the apartment, and Section 19(11) says every allottee shall participate towards registration of the conveyance deed under Section 17(1). A buyer who delays taking possession while a dispute runs should get legal advice on how these duties interact with the claims being pursued.

For a fuller inspection list, our possession and snagging checklist covers what to look for room by room.

What does the ruling mean for delay compensation claims?

It means this buyer's delay and amenity claims were not decided in this appeal, and the Tribunal pointed inquiry-based compensation to the adjudicating officer. The Authority can order refunds and delay interest, the Tribunal said, while compensation requiring inquiry falls under Sections 71 and 72.

The case is a reminder that the route matters as much as the claim. A buyer who files every grievance in one place, before one forum, may find that only part of it can be decided there. Splitting the claims early, and filing each where it belongs, saves months.

It is also a reminder about leverage. Withholding a payment to press a complaint can backfire if the regulator decides the payment was due. Paying undisputed dues while pursuing your claims keeps the focus on what the developer owes you.

Frequently asked questions

What did the Karnataka Tribunal order in the ALN Arambh appeal?

As reported by LiveLaw, the Karnataka Real Estate Appellate Tribunal dismissed the buyer's appeal on 29 September 2026 and upheld K-RERA's order directing her to pay Rs 2.45 lakh within 30 days, and ALN Buildtech to execute the sale deed and hand over possession within 15 days of payment.

Who decides compensation claims under RERA?

The adjudicating officer. Section 71(1) of the RERA Act provides for a judicial officer who is or has been a District Judge to adjudge compensation under Sections 12, 14, 18 and 19. In the ALN Arambh case, the Tribunal said claims requiring inquiry fall under Sections 71 and 72, as reported.

Does a buyer have to pay dues on time under RERA?

Yes. Section 19(6) of the RERA Act makes every allottee responsible for necessary payments in the manner and time specified in the agreement for sale, and Section 19(7) makes the allottee liable to pay interest at the prescribed rate for any delay in those payments.

Where should common-area complaints be filed?

In the ALN Arambh case, the Tribunal said the Authority rightly directed the buyer to file common-amenity complaints through the association, as reported by LiveLaw. Section 19(9) of the RERA Act says every allottee shall participate towards forming an association or society of allottees.

Last updated 2026-10-22. PropNewz Team.