IN THE HIGH COURT OF CHHATTISGARH, BILASPUR
Goutam Bhaduri, Radhakishan Agrawal, JJ.
Chhattisgarh Housing Board Through Commissioner and ors. – Petitioners
Versus
Smt. Dr. Monika Pathak W/o Shri Navendu Pathak – Respondent
MA No. 4 of 2024, MA No. 184 of 2023
Decided On : 11-03-2024
New Issue Framing - Real Estate Dispute - Real Estate (Regulation and Development) Act, 2016 (RERA Act) - Sections 18, 71, 111 of the Transfer of Property Act (TP Act) - The judgment discusses the framing of a new issue by the court, the rights of the allottee to withdraw from the project, and the entitlement to refund of the amount deposited for the superstructure/house. The court's decision is influenced by the interpretation of Sections 18 and 71 of the RERA Act, as well as Section 111 of the TP Act.
Fact of the Case:
The case involves a dispute between the Chhattisgarh Housing Board and Dr. (Smt.) Monika Pathak regarding the allotment of a house. The allottee found the house in a dilapidated condition and sought a refund of the amount deposited. The court analyzed the sequence of events, including the execution of the lease deed, defects in the house, and the actions of the parties.
Finding of the Court:
The court found that the allottee was entitled to a refund of the amount deposited for the superstructure/house due to the failure of the promoter to deliver possession of a habitable house. The court also dismissed the appeal preferred by the Chhattisgarh Housing Board.
Issues: The main issues revolved around the rights of the allottee to withdraw from the project, the entitlement to a refund, and the interpretation of relevant provisions of the RERA Act and the TP Act.
Ratio Decidendi: The court's decision was based on the interpretation of Sections 18 and 71 of the RERA Act, as well as Section 111 of the TP Act. It emphasized the allottee's right to withdraw from the project and the obligation of the promoter to refund the amount deposited for the superstructure/house.
Final Decision: The court allowed the appeal preferred by the allottee, Dr. (Smt.) Monika Pathak, to the extent indicated and dismissed the appeal preferred by the Chhattisgarh Housing Board. No costs were awarded.
JUDGMENT :
Goutam Bhaduri, J.
1. Since both the appeals are against the order dated 18-10-2023 passed by the Chhattisgarh Real Estate Appellate Tribunal, Raipur, (henceforth ‘the Tribunal’) in Appeal No.63 of 2022 arising out of order dated 23-12-2020 passed by the Real Estate Regulatory Authority, Raipur (henceforth ‘the RERA’) in case No.M-PRO- 2020-01049 they are being heard and decided together by this common judgment.
2. MA No.4 of 2024 is preferred by the Chhattisgarh Housing Board whereas MA No.184 of 2023 is preferred by Dr. (Smt.) Monika Pathak.
3. After hearing the parties, the following question emerges for consideration :
4. (i) Brief facts of the case are that on 10-5-2011 Dr. (Smt.) Monika Pathak (henceforth ‘the allottee’) was allotted a house bearing No.Peepal-I/172 in the scheme of the Chhattisgarh Housing Board (henceforth ‘the Board’) namely; Peepal-I. Subsequently, on the request of allottee, the house bearing No.Peepal-I/167 was allotted for which extra amount of Rs. 10,000/- was paid as transfer fees. The last installment was demanded on 4-3-2015 and, as such, the total amount of Rs. 36,53,434/- was deposited by the allottee. Subsequently, the lease deed was executed after four years of allotment on 24-9- 2015. The allottee was given the possession letter on 23-11-2015. When the allottee went for taking possession of the house, she found that the house was in dilapidated condition, as such, frequent e-mails were sent on different date for rectifying the defects. The Estate Officer of the Board asked the Executive Engineer to rectify the defects and, in turn, inform it to the Board. Thereafter, the Estate Officer of the Board again sent e-mail dated 3-12-2015 & 10-12- 2015. When nothing had transpired, the allottee eventually sent an e- mail dated 19-7-2019 to the Executive Engineer. Thereafter, legal notice was issued by the allottee and lastly a complaint before the RERA was filed on 26-5-2020.
(ii) In the month of June, 2020 reply was filed by the Board wherein the expert opinion was sought for rectification of the defects pointed out in the house and it was referred that because of inherent defect in the plinth, the cracks on walls had occurred. After coming to know about this fact that the house was still incomplete, the allottee, on 21-7-2020 withdrew from the project and the Board, in turn, in reply to rejoinder agreed to refund the amount with interest.
(iii) Subsequently, the order was passed by the RERA on 23-12- 2020 wherein it was partly allowed and the amount of Rs. 17,152/- as interest was directed to be returned on payment of advance lease rent and adjustment of advance lease amount computing the lease period from the date of handing over of possession and further the Board was directed to rectify the entire defect and handover possession of the house to the allottee.
(iv) Against the order, the allottee preferred an appeal before the Tribunal wherein the Tribunal by its order dated 18-10-2023 has directed to pay interest at the rate of 10.70% per annum for every month of delay on the amount of Rs. 36,53,500/- from 1-1-2016 till handing over of the possession of the house to the allottee. Aggrieved by such order, both the Board and the Allottee are before this Court.
5. Learned counsel appearing for the Board would submit that once the lease deed having been executed, no return of amount can be ordered for unless the lease is surrendered. He would further submit that as per Sections 18 & 71 of the Real Estate (Regulation and Development) Act, 2016 (henceforth ‘the RERA Act’) in order to adjudicate the quantum of compensation it is to be decided by the competent authority under the Act, not below the rank of District Judge. He would also submit that since the allottee sought for refund of entire amount that could not be done because lease was existing and as per S
The allottee is entitled to a full refund for the house due to the promoter's failure to deliver a habitable property, with interest at 10.70% per annum.
The judgment established the unconditional right of the allottee to seek refund and the application of promissory estoppel in enforcing promises made by the promoter.
The distinction between refund of amount and compensation under the 2016 Act, and the power of the Regulatory Authority and the Adjudicating Officer to decide such matters.
Section 37 provides that K-RERA for the purpose of discharging its functions under the provisions of Act or Rules or Regulations can issue directions from time to time to promoters allottees or real ....
Allottees possess an unqualified right under section 18 of the Act to withdraw from the project and demand refunds if possession is not delivered in accordance with the agreement, emphasizing timely ....
The Real Estate (Regulation and Development) Act, 2016 provides distinct remedies for refund and compensation, and the unqualified right of an allottee to get a refund of the amount deposited with th....
Private settlements cannot override statutory obligations established by the Real Estate (Regulation and Development) Act, 2016; agreements executed under duress or unfair terms are void.
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