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2024 Supreme(Chh) 235

IN THE HIGH COURT OF CHHATTISGARH, BILASPUR
GOUTAM BHADURI, SANJAY S. AGRAWAL, JJ.
M/s. M. Ahuja Projects (1) (P) Ltd. - Appellant
Versus
Green Glory Residents Welfare Society, Through Its President Mr. Ch. Damodar - Respondent
MA No. 21 of 2024
Decided On : 29-04-2024

Advocates Appeared:
For the Appellant : Ms. Gurpreet Kaur Chawla.
For the Respondent: Ms. Muskaan Fatwani.

IMPORTANT POINT
The central legal point established in the judgment is the importance of fulfilling promises made in the project brochure, the application of the doctrines of legitimate expectation and estoppel, and the principle of purposive interpretation in interpreting the completion certificate under Section 2(q) of the Act of 2016.

Headnote:

completion certificate - Real Estate Regulatory Authority - Real Estate (Regulation and Development) Act, 2016 [Section 2(q)] - The court discussed the interpretation of the completion certificate under Section 2(q) of the Act of 2016, emphasizing the importance of fulfilling the promises made in the project brochure and applying the doctrines of legitimate expectation and estoppel. The court also highlighted the principle of purposive interpretation and its application in enveloping the promised amenities in the definition of the completion certificate.

Fact of the Case:

The appellant's project was subject to orders from the Chhattisgarh Real Estate Regulatory Authority (RERA) and subsequent legal challenges. The completion certificate was issued by the Municipal Corporation, Raipur, but was nullified by the Appellate Authority RERA. The case revolved around the validity of the completion certificate and the fulfillment of promises made in the project brochure.

Finding of the Court:

The court found that the completion certificate could not override the actual existing facts and emphasized the importance of fulfilling promises made in the project brochure. It applied the doctrines of legitimate expectation and estoppel to protect the interests of the consumer and highlighted the principle of purposive interpretation in interpreting the completion certificate under Section 2(q) of the Act of 2016.

Issues: The issues revolved around the validity of the completion certificate, the fulfillment of promises made in the project brochure, and the application of legal doctrines and principles in interpreting the completion certificate under the Act of 2016.

Ratio Decidendi: The court's decision was influenced by the importance of fulfilling promises made in the project brochure, the application of the doctrines of legitimate expectation and estoppel, and the principle of purposive interpretation in interpreting the completion certificate under Section 2(q) of the Act of 2016.

Final Decision: The appeal was dismissed, and the matter was remanded back to the executing Court 'RERA' to adduce evidence, as the court found no illegality and no question of law to consider in the case.

JUDGMENT :

Goutam Bhaduri, J.

1. Heard.

2. The present appeal is filed against the order dated 07.02.2024 passed by the Chhattisgarh Real Estate Appellate Tribunal.

3. The facts of this case are that, initially on an application filed by one of the beneficiary of the project of the appellant, the Chhattisgarh Real Estate Regulatory Authority (hereinafter referred to as ‘the RERA’) by its order dated 17.07.2018, in one of the proceedings, has passed the orders, wherein the Promotor was directed as follows : (i) to remove the defects in the Workmanship, as pointed out by the residents, (ii) to complete the entire work, which was depicted in the brochure, till the month of September 2018, (iii) that after completion of the work as mentioned in the brochure, the completion certificate be obtained from the competent authority, (iv) to pay an amount of Rs.31 Lakhs by way of a fixed deposit in the name of Green Glory Residents Welfare Society for carrying out the work of construction of swimming pool & (v) the Commissioner, Municipal Corporation, Raipur was further directed to ensure whether the work is complete, according to the projection made in the brochure and thereafter to issue a completion certificate.

4. The said order passed by the learned RERA on 17.07.2018 (Annexure A-3) was subject of challenge before this Court in writ petition bearing WP(C) No.2374/2018, which was dismissed by order dated 27.08.2018. Subsequently, a writ appeal bearing No.756/2019 was filed, and this Court by order dated 27.06.2019 has dismissed the said appeal. Thereafter, the said order was challenged before the Supreme Court, and the Supreme Court by its order dated 13.11.2019 has initially directed to deposit 50% of the amount less the amount already deposited in RERA in SLP No.25088/2019. According to the appellant, an amount of Rs.5 Lakhs was deposited on 23.10.2019 and thereafter, an amount of Rs.10.50 Lakhs was deposited on 02.12.2019. Subsequently, the Apex Court has dismissed the said SLP vide its order dated 26.09.2022.

5. Pursuant thereto, an execution petition was filed by the respondent, and the RERA by its order dated 02.01.2023 dismissed the said execution by holding that an amount of Rs.31 Lakhs have been paid in installment till 15.12.2022 and the appellant has already obtained the completion certificate dated 05.04.2021 from the Municipal Corporation, Raipur, meaning thereby, they have completed the project work and dismissed the execution petition. The Welfare Society challenged the said order of execution before the Real Estate Appellate Tribunal Raipur (hereinafter referred to as ‘The Tribunal’) in Appeal No.177/2023. Thereafter, the Tribunal, on 07.02.2024, allowed the appeal and remanded the matter back to the executing court ‘RERA’ with certain direction which primarily included that the completion certificate since was issued behind the back of the Welfare Society and the actual physical inspection was not carried out, therefore, the said process be carried out and thereafter, the order be passed. Being aggrieved by such an order, the present appeal.

6. Learned counsel for the appellant would submit that the completion certificate dated 05.04.2021 (Annexure A-6) was issued as per Section 2(q) of the Real Estate (Regulation and Development) Act, 2016 [hereinafter referred to as ‘Act of 2016’], which purports that the completion certificate would be within the meaning when the project is developed and completed and the said certificate is issued by the competent authority under the local Act. Learned counsel would submit that the completion certificate (Annexure A-6) was issued by the Municipal Corporation, Raipur, as per the Chhattisgarh Municipal Corporation and Municipalities (Registration of Colonizer, Terms and Conditions) Rules, 2013, as such, that certificate could not have been nullified by the Appellate Authority RERA, as it was within the definition of the Act and issued by the competent authority. Consequently, the order of

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