SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2024 Supreme(Bom) 1089

IN THE HIGH COURT OF BOMBAY
Sandeep V. Marne, J.
Mohammed Zain Khan - Appellant
Versus
Emnoy Properties India and Ors. - Respondents
Second Appeal No.209 of 2022 With Interim Application No.290 of 2020 In Second Appeal No.209 of 2022.
Decided On : 23-04-2024

Advocates:
Advocate Appeared:
For the Appellant : Mr. Nilesh Gala with Mr. Manish Gala, Mr. Minil Shah, Mr. Ashraf Kapoor and Ms. Alpa Gala i/b M/s. Law Square
For the Respondent: Mr. Bhooshan Mandlik, Mr. V.M. Parkar

Complaints under RERA can only be filed for projects capable of registration; lack of necessary permissions renders a project unregistrable, barring complaints.

Headnote:(A) Real Estate (Regulation and Development) Act, 2016 - Sections 3, 4, 31, and 59 - Appeal against dismissal of complaint for non-registration of real estate projects - Appellant claimed rights over Valvan Valley project and sought action against Respondents for non-registration - Appellate Tribunal upheld dismissal, ruling that project was not registrable due to lack of development permissions - Appellant's complaint regarding Lion's Valley project was permitted to be pursued separately. (Paras 1, 6, 35)

(B) Jurisdiction of Regulatory Authority - The court held that complaints under RERA can be filed for unregistered projects only if they are capable of being registered - The absence of necessary permissions renders the project unregistrable, thus barring complaints under RERA. (Paras 25, 32)

Facts of the case:
Appellant and his mother entered into an agreement to purchase a plot in Valvan Valley project, but the project was not registered, and necessary permissions were not obtained. Appellant filed complaints against the Respondents for non-registration and sought relief under RERA. (Paras 2, 4)

Findings of Court:
The Appellate Tribunal's decision to dismiss the complaint was upheld, affirming that the Valvan Valley project was not eligible for registration under RERA due to lack of development permissions. The Appellant was granted liberty to pursue claims regarding the Lion's Valley project. (Paras 6, 36)

Issues: Whether the Appellant's complaint could be entertained under RERA for the Valvan Valley project, which was not registered, and the implications for the Lion's Valley project. (Paras 7, 35)

Ratio Decidendi: The court ruled that the RERA provisions apply only to projects that are capable of being registered, and the absence of necessary permissions for the Valvan Valley project precluded any complaint under RERA. (Paras 25, 32)

Result: Second Appeal dismissed; Appellant granted liberty to pursue claims regarding Lion's Valley project.

Judgement Key Points

Case Summary

  • This is a Second Appeal challenging the Appellate Tribunal's dismissal of a complaint under RERA regarding non-registration of Valvan Valley project, with liberty granted for Lion's Valley project. (!) (!)
  • Appellant and his mother agreed to buy Plot No.13-B (22,000 sq ft) in Valvan Valley project for Rs. 55 lakhs, paid Rs. 12.5 lakhs; NA permission promised by April 2013, possession by August 2013; later agreement extended timeline. (!)
  • Respondents failed to complete Valvan Valley; offered 4 plots in Lion's Valley instead (total balance Rs. 42.5 lakhs); plots not conveyed; Appellant filed consumer complaint, got interim stay on transfer. (!)
  • Post-RERA (effective Nov 2017), projects not registered; Appellant filed online complaint with MahaRERA after writ petition led to software upgrade for unregistered projects; complaint dismissed as land agricultural, no development permissions, not a "real estate project" under S.2(zn). (!) (!)
  • Appeal to Tribunal dismissed for Valvan Valley (not registrable), liberty for Lion's Valley; interim stay granted earlier. (!) (!)
  • Substantial question of law: Whether RERA authorities justified in refusing complaint for S.3 contravention/punishment under S.59 due to non-registration, given S.31. (!)

Key Legal Issues and Findings

  • Complaints under S.31 RERA maintainable for unregistered projects if they contravene S.3 (prohibiting marketing/sale without registration); non-registration punishable under S.59; registration not precondition for S.31 complaint. (!) (!) (!)
  • However, S.31 complaints only for projects capable of/liable for registration; incapable/unregistrable projects (e.g., lacking S.4(2) docs like commencement certificate, sanctioned plans) fall outside RERA purview—no contravention of S.3/S.59. (!) (!) (!) (!)
  • Valvan Valley: Agricultural land, no NA permission/development sanctions; incapable of registration under S.3/S.4; complaint not maintainable under S.31 for reliefs under S.12 (interest on advances), S.18 (return/compensation), S.59 (penalty). (!) (!) (!) (!) (!)
  • Lion's Valley: Appellant claims oral agreement for 4 plots; permissions allegedly obtained but unregistered; liberty granted to pursue separately before MahaRERA. (!) (!) (!)
  • RERA remedies additional to civil/consumer remedies; unregistrable projects (e.g., <500 sqm, <8 units, no permissions, agricultural land sans layout) pursue outside RERA (e.g., civil suit). (!) (!) (!) (!)
  • S.4 mandates approvals/commencement certificate/sanctioned plans for registration; no provision for registering projects without them. (!) (!)
  • Definitions: "Promoter" (S.2(zk)) and "real estate project" (S.2(zn)) cover plot development/sale, but registration feasibility governs RERA applicability. (!) (!)

Outcome

  • Second Appeal dismissed; substantial question answered against Appellant (RERA bodies justified in refusing Valvan Valley complaint). (!)
  • Liberty to pursue Lion's Valley under RERA; all other remedies (civil/consumer) open for both projects. (!)

JUDGMENT :

Sandeep V. Marne, J.

By this Appeal, Appellant challenges judgment and order dated 9 October 2019 passed by the Maharashtra Real Estate Appellate Tribunal, Mumbai (Appellate Tribunal) rejecting the Appeal to the extent of the project 'Valvan Valley Project' and granting liberty to the Appellant to take further appropriate steps in respect of 'Lion's Valley Project'. Appeal was preferred by Appellant before Appellate Authority challenging order dated 5 September 2018 passed by the Regulatory Authority dismissing his complaint filed seeking direction against Respondents for initiation of action for non-registration of both the projects.

2. Facts of the case are as follows. Respondent No.1-Emnoy Properties India, a Limited Liability Partnership, with Respondent Nos.2 and 3 as its partners, were implementing project for sale of various bungalow plots under name 'Valvan Valley' at village Nandgaon, Taluka Mawal, Tungarli, Lonavala. Appellant and his mother were desirous of purchasing a plot in Valvan Valley project and accordingly agreed to purchase Plot No.13-B (Part A) admeasuring 22, 000 square feet for consideration of Rs. 55, 00, 000/-. They paid an amount of Rs. 12, 50, 000/- towards part consideration and Respondent No.1 issued allotment letter and receipt dated 28 August 2012 in the joint names of Appellant and his mother. As per the allotment letter, permission for Non Agricultural (NA) use of the land was to be obtained by April 2013 and possession of the plot was to be handed over against payment of balance consideration by August 2013. It appears that NA permission was not secured within the agreed time up to August 2013. An agreement for sale was executed between Respondent No.1 as Vendor and Appellant and his mother as Purchaser, under which, the project completion period was agreed as two years. It is the case of Appellant that Respondent No.1 failed to complete the project and later informed the Appellant that Valvan Valley project was taken over by Valvan Valley Infrastructure Private Limited, an incorporated company with Respondent Nos.5 and 6 as its Directors. According to Appellant, Respondent Nos.1 to 6 failed to honour their commitments and therefore Respondent Nos. 2, 5 and 6 offered to convey and sale four small plots in Lion's Valley project i.e. NA Plot Nos.33 (522 square meters), 34 (464 square meters), 35 (464 square meters) and 36 (464 square meters) in lieu of Plot No.13-B in Valvan Valley project on payment of balance amount of consideration of Rs. 42, 50, 000/-. However, since the said four plots were not conveyed to Appellant, he filed Complaint before State Consumer Disputes Redressal Commission against Respondent Nos. 1 to 7 seeking sale and conveyance of the four plots in Lion's Valley project or for monetary compensation in the alternative. On 9 May 2017 State Consumer Disputes Redressal Commission passed interim order restraining Respondent Nos. 1 to 7 from transferring or selling the four plots in Lion's Valley project.

3. After coming into effect of Real Estate (Regulation and Development) Act, 2016 (the RERA) on 6 November 2017, according to Appellant, it became duty of Respondents to register both the projects within 90 days. However, none of the two projects were registered. Instead Respondent Nos. 7 and 8 continued promoting and marketing Lion's Valley project by issuance of broachers. In the Lion's Valley project, according to Appellant, there are 19 independent luxury bungalows spread across area of 2 acres. According to Appellant, Maharashtra Real Estate Regulatory Authority (MahaRERA) failed to take action against Respondent Nos.1 to 10 for non-registration of either of the projects. Appellant therefore filed Writ Petition (L) No.908 of 2018 before this court seeking directions for formulation of mechanism to deal with complaints against unregistered projects. On 31 July 2018, MahaRERA gave undertaking before this court that it would modify its software for entertaining complai

    Click Here to Read the rest of this document
    1
    2
    3
    4
    5
    6
    7
    8
    9
    10
    11
    SupremeToday Portrait Ad
    supreme today icon
    logo-black

    An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

    Please visit our Training & Support
    Center or Contact Us for assistance

    qr

    Scan Me!

    India’s Legal research and Law Firm App, Download now!

    For Daily Legal Updates, Join us on :

    whatsapp-icon telegram-icon
    whatsapp-icon Back to top