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2025 Supreme(SC) 181

SUPREME COURT OF INDIA
Pamidighantam Sri Narasimha, Manoj Misra, JJ.
Surendra G. Shankar & Anr. – Appellants
Versus
Esque Finamark Pvt. Ltd & Ors. – Respondents
Civil Appeal No. 928 of 2025 (Arising out of SLP (Civil) No. 25540 of 2023)
With
Dilip Kumar – Appellant
Versus
Esque Finamark Pvt. Ltd & Ors. – Respondents
Civil Appeal No. 929 of 2025 (Arising out of SLP (Civil) No. 24959 of 2023)
Decided On : 22-01-2025

Advocates appeared:
For Petitioner(s): Mr. Vinay Navare, Sr. Adv. Mr. Harshad Bhadbhade, Adv. Mr. Siddharth Mehta, Adv. Ms. Samridhi S. Jain, AOR Ms. Harshada Shrikhande, Adv. Mr. Chaitanya Dixit, Adv.
For the Respondent(s): Mr. Vinayak Bhandari, Adv. Mr. Arnav Narain, AOR Ms. Surekha Raman, Adv. Mr. Amarjit Singh Bedi, Adv. Mr. Shreyash Kumar, Adv. Mr. Imilikaba Jamir, Adv. M/S. K J John And Co, AOR Mrs. B. Sunita Rao, AOR

The High Court erred by commenting on the merits of orders while only addressing the delay condonation issue, necessitating restoration of appeals for merit consideration.

Headnote:(A) Real Estate (Regulation and Development) Act, 2016 - Section 43 - Appeals against orders of RERA - Delay in filing appeals - High Court dismissed appeals for delay in condoning application - Court held that merits of earlier orders should not have been commented upon without condoning delay - Appeals restored for consideration on merits. (Paras 8, 9, 11)

(B) Condonation of Delay - The court emphasized that the scope of appeal was limited to examining the correctness of the delay condonation order, and merits could only be examined post-condonation. (Paras 8, 10)

Facts of the case:
The appellants, allottees in a real estate project, filed complaints with RERA for possession of flats, which were dismissed. Appeals against these dismissals were also dismissed by the Appellate Tribunal for being barred by limitation.

Findings of Court:
The High Court set aside the dismissal of appeals, condoned the delay, and restored the appeals for consideration on merits.

Issues: The main issue was whether the High Court should have commented on the merits of the orders without first condoning the delay in filing the appeals.

Ratio Decidendi: The court ruled that the High Court's comments on the merits were inappropriate as the Appellate Tribunal had not addressed those merits, and the delay should have been condoned first.

Result: Appeals allowed.

JUDGMENT

MANOJ MISRA, J.

1. Leave granted.

2. These two appeals assail a common judgment and order of the High Court of Judicature at Bombay [The High Court] dated 23.08.2023, inter alia, passed in Second Appeal Nos.475 and 188 of 2023. As these appeals assail a common order, they have been heard together and are being decided by a common order.

3. Special Leave Petition (Civil) No. 25540 of 2023 arises from Complaint No. CC006000000056663 whereas Special Leave Petition (Civil) No. 24959 of 2023 arises from Complaint No.006000000056656; both complaints were filed before the Maharastra Real Estate Regulatory Authority, Mumbai [RERA Mumbai] for possession of flat in a building complex known as “Lodha Venezia” & “Lodha Azzuro”. The appellants herein separately filed the aforesaid complaints claiming themselves to be allottees in a building project registered with RERA. The complainants, inter-alia, impleaded Esque Finmark Pvt. Ltd (Respondent No.1 herein) (for short R-1) and Macrotech Developers Ltd. (erstwhile “Lodha Developers Ltd.”) (Respondent no.2 herein) (for short R-2) as opposite parties to the complaint. During the course of the proceedings before RERA, Mumbai, on the objection raised by R2 that there is no privity of contract between the complainant and R2, RERA, Mumbai, vide order dated 23.07.2019, discharged R2 from the proceedings. Thereafter, the two complaints, including other similar complaints, were dismissed by RERA, Mumbai by a common order dated 16.10.2019.

4. Aggrieved by dismissal of their complaints, the appellants herein separately filed appeals before the Maharashtra Real Estate Appellate Tribunal, Mumbai [Appellate Tribunal, Mumbai] questioning the final order dated 16.10.2019 as well as the order dated 23.07.2019. Importantly, these appeals were filed on 10.12.2019 i.e., within 60 days of the final order dated 16.10.2019. However, since these appeals also questioned the order dated 23.07.2019, a formal application seeking condonation of the delay was also presented, though later.

5. The Appellate Tribunal, Mumbai vide order dated 1.12.2022 dismissed the appeals as barred by limitation while observing that since the order dated 23.07.2019 was passed in the presence of the parties (which includes their counsel), there was no sufficient cause to condone the delay in filing the appeal.

6. Aggrieved by dismissal of those appeals, the appellants along with other aggrieved parties separately preferred second appeals before the High Court.

7. By the impugned common order, the High Court dismissed the appeals while observing as under:

    “In the normal circumstances, I would have condoned the delay. However, it appears that the order dated 23 July 2019 was passed with consent. According to the learned counsel for the appellant(s), the Advocate was not authorized to give such consent. However, admittedly, no application was thereafter made seeking recall of the said order. On the contrary, it appears from the final order dated 16 October 2019, that the same submissions were made at the time of final hearing of the complaint(s). The learned counsel for the appellant(s) submit that the merits of the order dated 23 July 2019 cannot be examined at this stage. However, considering the overall facts and circumstances of the case, I am not inclined to interfere with the impugned order(s). The Second Appeals are dismissed.”

8. We have heard Mr. Vinay Navare for the appellants and Mr. S. Niranjan Reddy for the respondents. Although multiple submissions were raised from both sides touching upon the merits of the case, we do not deem it necessary to refer to them as the present appeals can be allowed on a short ground, which is, that the order impugned before the High Court was of refusal to condone the delay in preferring the appeals before the Appellate Tribunal, Mumbai. Once the High Court opined that in normal circumstances the delay ought to have been condoned, it ought not to have commented upon the merits of the orders dated 23

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