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2023 Supreme(Ker) 87

IN THE HIGH COURT OF KERALA AT ERNAKULAM
A. MUHAMED MUSTAQUE, SHOBA ANNAMMA EAPEN, JJ.
Santhosh T.N., S/o. T.K. Narayanan – Appellant
Versus
Permanent Lok Adalath, Rep. By Its Secretary, Ernakulam-682011 and 2 Ors. – Respondents
WA No. 1090 Of 2020
Decided On : 24-01-2023

Advocates Appeared:
For the Appellant : G. Krishnakumar, Ani Joseph K.A.
For the Respondents: Sri. R. Venugopal.

Point of Law : Section 88 of RERA prescribes that provisions of RERA shall be in addition to and not in derogation of provisions of any other law for time being in force.

Headnote:

Legal Services Authorities Act, 1987 - Section 22A, B, C(7), (E)(5), 25, - Real Estate (Regulation and Development) Act, 2016 – Section 79, 88 - Kerala High Court Act, 1958 - Section 5(i) - Jurisdiction of Permanent Lok Adalat - Housing and real estate services - Whether jurisdiction of Permanent Lok Adalat constituted under Legal Services Authorities Act, 1987 is ousted by advent of Real Estate (Regulation and Development) Act, 2016 in dealing with matters relating to housing and real estate services – RERA has come into force in order to deal with matters relating to real estate services - Para 12.

Finding of the Court: After declaring "housing and real estate service" to be "public utility service" under Section 22A of Act, first respondent has jurisdiction to entertain complaints filed by allottees of flat/apartment and even though there is RERA for dealing with such complaint, jurisdiction of first respondent is not ousted - RERA does not exclude jurisdiction of Permanent Lok Adalat to entertain and decide disputes relating to "housing and real estate service"- First respondent, Permanent Lok Adalat has jurisdiction to entertain Ext.P1 complaint filed by appellant - Hence, impugned judgment rendered by learned Single Judge and Ext.P3 order are liable to be set aside.

Result: Appeal allowed.

Judgement Key Points

Certainly. Here are the key legal points derived from the provided document:

  • The jurisdiction of the Permanent Lok Adalat (PLA) constituted under the Legal Services Authorities Act, 1987, to entertain disputes relating to housing and real estate services is not ousted by the enactment of the Real Estate (Regulation and Development) Act, 2016 (RERA). This is because RERA explicitly states that its provisions shall be in addition to and not in derogation of other laws in force (!) (!) .

  • The inclusion of "housing and real estate services" within the definition of "public utility service" under Section 22A of the Legal Services Authorities Act, 1987, grants the PLA jurisdiction to entertain complaints related to such services, even after the commencement of RERA. The notification declaring this inclusion was published in the gazette, and the Act's overriding provisions reinforce that existing jurisdiction remains intact (!) (!) .

  • RERA's Section 79 bars civil courts from entertaining matters that fall within the jurisdiction of authorities or adjudicating bodies established under RERA. However, the PLA is not a civil court; it is a statutory authority created under the Legal Services Authorities Act, 1987. Therefore, the bar does not apply to the PLA's jurisdiction (!) (!) .

  • Section 88 of RERA clarifies that the Act's provisions are in addition to other laws, indicating that the existence of RERA does not automatically exclude or override the jurisdiction of other competent authorities, such as the PLA, in matters related to housing and real estate services (!) (!) .

  • The legal framework supports a concurrent jurisdiction where both RERA and the PLA can entertain disputes concerning housing and real estate services, and the initiation of proceedings under one does not preclude the other. This is reinforced by the specific provisions of the respective statutes and their interpretative principles (!) (!) .

  • Given these legal principles, the initial dismissal of the complaint by the PLA on the ground of lack of jurisdiction was incorrect. The proper course is to remand the matter for the PLA to consider the complaint on its merits, respecting its jurisdiction under the applicable laws (!) (!) .

Please let me know if you need a detailed analysis or specific legal advice related to this case.


JUDGMENT :

[Shoba Annamma Eapen, J.]

1. The short question that arises for consideration in this appeal is as to whether the jurisdiction of the Permanent Lok Adalat constituted under the Legal Services Authorities Act, 1987 is ousted by the advent of the Real Estate (Regulation and Development) Act, 2016 (in short, “RERA”) in dealing with matters relating to housing and real estate services.

2. The impugned judgment dated 08.07.2020 rendered by the learned Single Judge in WP(C) No.14425/2019 is the subject matter of challenge in this intra court appeal filed under Section 5(i) of the Kerala High Court Act, 1958. The appellant is the writ petitioner and the respondents are the respondents in the writ petition.

3. The appellant/petitioner has filed the writ petition with the following prayers;

    “i) Issue a writ of certiorari or any other appropriate writ, order or direction, quashing Exhibit P3 Order of the 1st respondent dismissing Exhibit P1 complaint.

ii) Issue a writ of mandamus, directing the 1st respondent to proceed with Exhibit P1 complaint and to pass an award on merits after hearing the parties, within a time frame to be fixed by this Hon'ble Court.”

4. The facts of the case are as follows;

The appellant/petitioner, who is an allottee of a real estate project launched by respondents 2 and 3, entered into an agreement dated 05.02.2015 with respondents 2 and 3 for purchase of 1/5th undivided right in the land measuring 2.48 ares comprised in Mattancherry Village for constructing a flat in the proposed apartment complex, having six flats. The total cost for the undivided share of the land and for construction of the flat agreed was Rs.35,50,000/-, out of which, the appellant/ petitioner paid an amount of Rs.14,00,000/- on the date of booking itself. As per the agreement, rest of the amount was agreed to be paid on receipt of a communication expressing readiness to hand over the apartment to the appellant/petitioner. Since respondents 2 and 3 have failed to construct the apartment in terms of the agreement, the appellant/petitioner forced to withdraw from the agreement and a request was made to refund the amount with interest. As there was no response, the appellant/petitioner preferred Ext.P1 complaint as OP No.32/2018 before the first respondent – the Permanent Lok Adalat – under the Legal Services Authorities Act, 1987, (for short, “the Act”) since the disputes relating to “housing and real estate service” come within the purview of “public utility service” under Section 22A of the Act. After hearing the appellant/petitioner, the first respondent passed Ext.P3 order, holding that the first respondent has no jurisdiction to entertain Ext.P1 complaint since RERA came into effect. Aggrieved by Ext.P3 order, the appellant/writ petitioner has approached this Court with the writ petition. The learned Single Judge, after adverting to the facts of the case and hearing the parties, dismissed the writ petition, holding that there is no glaring error of law or fact apparent on the face of record, which justifies an interference with Ext.P3. However, the legal question of concurrent jurisdiction of the Permanent Lok Adalat was left open. Challenging the said judgment of the learned Single Judge, the appellant/petitioner has approached this Court in appeal.

5. Heard Sri.G.Krishnakumar, the learned counsel for the appellant, and Sri.R.Venugopal, the learned counsel for respondents 2 & 3.

6. The learned counsel for the appellant submits that the original dispute relating to “housing and real estate service” was not included under Section 22A of the Act to cloth with the jurisdiction to the first respondent. It is pointed out that as per notification, SO 495(E) published in the gazette dated 16.02.2016, “housing and real estate service” is included within the purview of “public utility service” under Section 22A of the Act. Section 25 of the Act prescribes that the Act is having overriding effect. Hence, the learned counsel for the appellant

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