Court: Broker may only be compensated for work completed.

MUMBAI: A civil court dismissed the claim of Shailesh Kamani, a resident of Ghatkopar, who sought a fee of Rs. 3 lacks from a property owner for whom he had allegedly brokered a deal in 2012.

The court noted that the role of a broker is to persuade the vendor and purchaser to arrive at the sale of a property and that only upon completion of the transaction the agent becomes entitled to claim the compensation for his work done.

The court determined that the Deonar gala, valued at Rs. 1.1 crore, was never sold by the property owner to the party represented by the broker and was instead sold to a different party.

“Once either side abandons the transaction, the agent cannot assert his right to recover fees as an agent. The court ruled that the claim of helping the parties to a compromise cannot be considered part of carrying out the agent’s obligations.

The buyer filed a lawsuit with the Bombay High Court after the deal between the buyer and the purchaser fell through, according to the court.

The transaction between the defendant (Valerian Noronha) and the buyer (Ganesh Kamath), for which the plaintiff (Kamani) is claiming that he discharged his duties as a broker, has thus far failed but not been completed, the court stated.