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2024 Supreme(Kar) 633

IN THE HIGH COURT OF KARNATAKA AT BENGALURU
H.P. SANDESH, J.
M/S. H.M. INFRA TECH PVT. LTD. – Appellant
Versus
H.M. TAMBORINE APARTMENTS OWNERS ASSOCIATION – Respondent
Regular First Appeal No. 2457 of 2024, Miscellaneous First Appeal No. 5580 of 2017
Decided On : 20-12-2024

Advocates:
Advocate Appeared:
For the Appellants : UDAYA HOLLA, VIVEK HOLLA
For the Respondents: D.R. RAVISHANKAR, RAMA RAMACHANDRA IYER, P.V. MIRANDRA KUMAR

The court ruled that the Trial Court improperly rejected the plaint under Order VII Rule 11, emphasizing that only the plaint's averments should be considered, not the defendants' defenses.

Headnote:(A) Real Estate (Regulation and Development) Act, 2016 - Section 79 - Civil Procedure Code, 1908 - Order VII Rule 11 - Suit for bare injunction - Trial Court erred in rejecting the plaint under Order VII Rule 11, failing to consider only the plaint's averments and not the defendants' defense - The RERA Act's applicability was misinterpreted as the suit was filed before the Act came into force. (Paras 4, 27, 31)

(B) Jurisdiction of Civil Courts - The ouster of jurisdiction must be strictly construed; the authority under RERA has no jurisdiction over the issues involved in the suit. (Paras 4, 10)

Facts of the case:
The appellant, a builder, entered into a joint development agreement and faced obstruction from defendants during construction of residential apartments, leading to a suit for injunction. (Paras 3, 4)

Findings of Court:
The Trial Court's order rejecting the plaint was erroneous, and the suit should proceed as per law. (Paras 31, 33)

Issues: Whether the Trial Court erred in allowing the application under Order VII Rule 11 and the applicability of RERA. (Paras 22, 32)

Ratio Decidendi: The court emphasized that only the plaint's averments should be considered under Order VII Rule 11, and the defense cannot influence the decision at this stage. (Paras 27, 31)

Result: Regular First Appeal allowed; the Trial Court's order set aside. (Paras 33)

Judgement Key Points

Based on the provided legal document, the court emphasized that when considering an application under Order VII Rule 11 of the Civil Procedure Code, only the averments made in the plaint should be taken into account. The defense, including any documents or arguments raised by the defendant, should not influence the court’s decision at this stage. The scope of Order VII Rule 11 is limited to examining whether the plaint discloses a cause of action, whether it is barred by law, or whether it is otherwise liable to be rejected on the grounds specified in the rule.

The court clarified that the plaint cannot be rejected solely based on the defense or on the merits of the case, and that the documents or evidence produced by the defendant are not relevant at this preliminary stage. Therefore, if the plaint's averments demonstrate a valid cause of action, it must be allowed to proceed, regardless of the defendant’s defenses or additional evidence.

In summary, the plaint plan cannot be considered for rejection based on the defense or the merits of the case; the decision must be confined to the allegations and averments contained within the plaint itself.


JUDGMENT :

H.P. SANDESH, J.

1. The R.F.A. No. 2457/2024 is filed challenging the order dated 19.10.2024 passed on I.A. No. 10 filed under Order VII Rule 11 read with Section 151 of CPC in O.S. No. 8454/2016 by the XL Additional City Civil and Sessions Judge, Bengaluru City. The M.F.A. No. 5580/2017 is filed challenging the order dated 22.04.2017 passed in O.S. No. 8454/2016 by the XL Additional City Civil and Sessions Judge, Bengaluru City.

2. Heard the learned counsel appearing for the respective parties.

3. The factual matrix of the case of the plaintiff/appellant before the Trial Court is that the appellant is a builder of repute, entered into a joint development agreement dated 19.08.2003 with the owner of the property bearing Bommanahalli Town Municipal khatha No. 364, Sy. No. 28 of Jaraganahalli village, Kankapura Road, Uttarahalli hobli, Bengaluru South Talulk, Ward No. 186, measuring totally 3 acres 18 guntas which is morefully described in the schedule property. It is also the case of the plaintiff that on 21.07.2003, the appellant obtained sanction of a building plan from BDA for construction of multi storied residential flats/apartments, comprising of several building/blocks which are interconnected. The appellant developed and constructed 4 blocks of residential units under the name and style M/s. H.M. Tambourine and postponed construction of the remaining blocks to a future date. The appellant in order to construct in the area kept apart in the front of the schedule property for future development as provided in the brochure and earmarked for future development in the schedule property obtained a modified sanction plan from the relevant authority in terms with the Karnataka Town and Country Planning Act on 24.06.2016. The appellant accordingly commenced construction in November 2016. In December 2016, when substantial progress was achieved by the appellant, the defendants abruptly began interfering with the construction of the new residential apartments and made illegal threats claiming that they would prevent the future occupiers of the new residential apartments. Though the appellant appraised the defendants that as per law and factually, they have no right to interfere and obstruction, continued the obstruction. Hence, constrained to file a suit for the relief of bare injunction. It is also contended that temporary injunction was granted and the same is questioned before this Court and the same was confirmed by this Court vide order 22.04.2017 and vacated the interim order of status quo granted on 08.08.2017 and order of this Court passed in W.P. No. 20615/2017 are consistent with each other and permitted to put up the construction. It is contend that in the meanwhile, an application under Order VII Rule 11 of CPC was filed for rejection of the plaint and the said application was allowed by the Trial Court hence, the appellant is before this Court in this appeal.

4. The learned counsel for the appellant in this appeal would vehemently contend that the Trial Court committed an error in not noticing that when this Court as well as the Apex Court time and again held that ouster of jurisdiction of Civil Courts have to be strictly construed and that in the instant case, the authority under Real Estate (Development and Regulation) Act, 2016 has no jurisdiction or competence to go into the issues involved in the suit. It is further vehemently contend that the Trial Court committed an error in relying upon Section 79 of the Act to hold that the suit is not maintainable ignoring the fact that Section 79 bars jurisdiction of the Civil Courts only in respect of matters over which the authority constituted under the Act has taken action or intends to take action pursuant to the power conferred by or under the Act. In the instant case, the authority has no power, competence or jurisdiction to restrain the respondents from interfering with the construction of residential apartments in the area earmarked for future development in

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