Purchasers of a new apartment from a contractor claimed that the possession of the apartment was not duly delivered to them, because a population form (form 4) was not duly given on the date stipulated in the contract and therefore demanded compensation.
The Court held that even if physical possession of the apartment was given, it does not constitute handing over possession under law. For a lawful delivery of possession of the apartment one must show that Form 4 is given, i.e., approval of the authorities and their consent to permanently connect the apartment to the necessary and essential systems. In this case the house was not connected by permanent connections to the basic facilities such as electricity, sewage, water and communications and therefore no lawful delivery of possession was made and the contractor was obligated to pay compensation to the purchasers of the apartment.