The court upheld the requirement for total deposit of compensation and interest before hearing appeals under the Real Estate Act, affirming RERA's jurisdiction over disputes involving landowners as allottees.

JUDGMENT :

(Sandeep Kumar, J.)

By way of this writ petition, the petitioner has prayed for the following reliefs:-

“(i) Issuance of a direction, order or writ, including writ in the nature of certiorari quashing the order dated 10.08.2021 passed by the Bihar Real Estate Appellate Tribunal (hereinafter referred to as “BREAT”) in Appeal Case No.28 of 2021 and Appeal No.29 of 2021, by which the learned BREAT allowed the prayer of private respondents and modified its earlier order dated 02.07.2021 and directed the petitioner to deposit the total amount of the compensation, interest and litigation cost payable as directed by the Adjudicating Officer of Real Estate Authority, Patna;

(ii) Issuance of a direction, order or writ, including writ in the nature of mandamus directing the learned BREAT to hear the appeal of the petitioner on merits as per the provisions of Section 43(5) of Real Estate (Regulation and Development) Act, 2016 (hereinafter referred to as “the Act”) which mandates deposit of at least 30% of the awarded amount for hearing the appeal and the petitioner has already deposited 30% of the awarded amount pursuant to the order dated 02.07.2021 passed by the learned BREAT.”

2. During the pendency of this case, the petitioner has filed Interlocutory Application no.1 of 2023 for staying the execution proceeding which has been initiated at the instance of the respondent nos.4 and 5 before the Real Estate Regulatory Authority, Bihar, in Execution Case Nos.68 of 2021 and 69 of 2021. The said interlocutory application has been allowed by this Court vide order dated 04.01.2024.

3. The facts of this case are that the petitioner is a company incorporated under the Companies Act, 1956 having registered office at Kidwaipuri, P.S.- Budha Colony, District-Patna. During the course of its business, the petitioner-company entered into a registered development agreement dated 25.08.2011 with respondent nos.4 and 5 for developing their land and further entered into an unregistered supplementary agreement dated 31.01.2011. Clause-7 of the agreement states that the project would be completed in three years including the grace period of six months from the date of sanction of the plan or the handing over the vacant possession to the developer. Since the project could not be completed within time, the respondent nos.4 and 5 filed complaint case nos. 81 and 82 of 2018 under section 31 of the Act before the Real Estate Regulatory Authority (for short “RERA”) on the ground of non-observance of the terms of the development agreement dated 25.08.2011. The petitioner-company opposed the maintainability of the said complaint cases on the ground that the respondent nos.4 and 5 did not allege violation of the provisions of the Act or rules and regulations made thereunder as required under section 31 of the Act. However, RERA by an order dated 09.08.2019 disposed of both the cases with a direction to the petitioner-company to hand over the possession of three specified flats along with parking space to each private respondent and also directed that the private respondents were not required to pay anything as stipulated in the supplementary agreement dated 31.01.2011. Against the aforesaid order, the petitioner-company preferred Appeal Case nos.08 & 09 of 2019 before the Real Estate Appellate Tribunal, Bihar unsuccessfully. Against the order of the Appellate Tribunal, the petitioner-company preferred Miscellaneous Appeal before this Court, which is still pending.

3.1. In the meantime, the respondents nos. 4 and 5 filed a connected case bearing No. RERA/AO/233/2019 and RERA/AO/234/2019 before the Adjudicating Officer claiming the interest and compensation under section 31 read with section 71 of the Act and Rule 37 of the Bihar Real Estate (Regulation and Development) Rules, 2017. In the said case, the petitioner-company filed a detailed reply mentioning therein that the time indicated in the agreement for completion of the project has to be strictly adhered t